Social Venture Capital Impact Investing Metrics Development
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Social Venture Capital Impact Investing Metrics Development
Explore an effective workflow for social venture capital impact investing, aiming at the identification, evaluation and improvement of impactful businesses.
1
Identify prospective businesses for impact investing
2
Conduct research on the social issue to be addressed
3
Develop an understanding of the local community and potential impact
4
Create an investment thesis outline based on social impact objectives
5
Approval: Investment Thesis
6
Develop key metrics for measuring social impact
7
Screen prospective businesses based on the developed investment thesis and metrics
8
Perform due diligence on shortlisted businesses
9
Use metrics to assess the impact potential of shortlisted businesses
10
Approval: Shortlisted Businesses
11
Construct a financial model to evaluate investment potential
12
Develop an investment proposal including social impact metrics
13
Present proposal to investment committee
14
Approval: Investment Proposal
15
Conduct negotiation and structuring of the investment deal
16
Implement the investment decision
17
Track and monitor the impact metrics post-investment
18
Report on the social impact made to stakeholders
19
Reevaluate metrics based on outcomes
20
Adjust strategy for future investments based on impact outcome
Identify prospective businesses for impact investing
This task involves identifying potential businesses that align with the principles of impact investing. Consider the social issues you are interested in addressing and research industries that have the potential to make a positive impact. The result of this task will be a list of potential businesses to further evaluate and consider for investment. Are there any specific industries or sectors you are interested in?
1
Local
2
National
3
International
Conduct research on the social issue to be addressed
In order to make informed impact investment decisions, it is important to conduct thorough research on the social issue you are seeking to address. This task involves gathering information about the root causes of the issue, existing solutions, and potential impact strategies. The desired result is a comprehensive understanding of the social issue and potential paths for impact investment. What specific social issue are you focusing on?
Develop an understanding of the local community and potential impact
To ensure the success of impact investments, it is crucial to understand the local community in which a business operates. This task involves conducting community assessments, engaging with local stakeholders, and evaluating potential social and environmental impact. The desired result is a clear understanding of the local context and the potential positive outcomes of the investment. What methods will you use to gather insights about the local community?
1
Job creation
2
Poverty reduction
3
Environmental sustainability
Create an investment thesis outline based on social impact objectives
An investment thesis outline provides a framework for making investment decisions based on social impact objectives. This task involves defining the core principles, goals, and criteria that will guide investment decisions. The desired result is a clear investment thesis outline that aligns with the desired social impact. What core principles and goals will guide your investment thesis?
1
Financial viability
2
Alignment with impact objectives
3
Potential for scalability
Approval: Investment Thesis
Will be submitted for approval:
Create an investment thesis outline based on social impact objectives
Will be submitted
Develop key metrics for measuring social impact
Measuring social impact is essential for evaluating the success and effectiveness of impact investments. This task involves developing key metrics that will be used to assess the social impact of potential investments. The desired result is a set of measurable indicators that will help evaluate the impact of investments. What specific metrics will you use to measure social impact?
1
Surveys
2
Interviews
3
Secondary data analysis
Screen prospective businesses based on the developed investment thesis and metrics
Perform due diligence on shortlisted businesses
Use metrics to assess the impact potential of shortlisted businesses
Approval: Shortlisted Businesses
Will be submitted for approval:
Screen prospective businesses based on the developed investment thesis and metrics
Will be submitted
Construct a financial model to evaluate investment potential
Develop an investment proposal including social impact metrics
Present proposal to investment committee
Approval: Investment Proposal
Will be submitted for approval:
Develop an investment proposal including social impact metrics
Will be submitted
Conduct negotiation and structuring of the investment deal
Implement the investment decision
Track and monitor the impact metrics post-investment
Report on the social impact made to stakeholders
Reevaluate metrics based on outcomes
Adjust strategy for future investments based on impact outcome
