Having a social impact business can help you raise capital more easily in some contexts, but it depends heavily on your business model, traction, and funding sources. Here’s a breakdown of how it can help:
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Access to Mission-Aligned Capital and Aligned Individual Investors
–You can tap into impact investors, foundations, and social venture funds (like Acumen, Omidyar Network, or BlueOrchard) that prioritize purpose alongside profit.
-Some investors even have dedicated ESG (Environmental, Social, Governance) or SDG (Sustainable Development Goals) mandates.
-Marketing a securities offering can be more effective as you can target individuals that will benefit from the company’s success or support the social impact changes that the business model provides.
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Grants and Non-Dilutive Funding
–Many governments, NGOs, and institutions offer grants, competitions, or fellowships for social impact ventures (e.g., Echoing Green, USAID, or EU Horizon programs).
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Stronger Brand and Community Appeal
–A compelling social mission can make it easier to attract press, community support, and early customers— which can in turn help convince investors.
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Public and Corporate Partnerships
–Being mission-driven can open doors to partnerships with corporates focused on CSR, or public-sector collaboration.
