Who can approach impact investors and low-cost foundation capital sources; how should an individual prepare for success in approaching impact investors and low-cost foundation capital sources; and what information is needed, and in what format?

Have a registered company, LLC, sole proprietorship, or benefit corporation profits or employee owned cooperatives can also approach impact investors.

Non-profit structures may be able to attract philanthropic funding or family offices in return for the ability to use the project as a tax write off.

It is recommended that those seeking investment from impact or philanthropic sources:

  • Quantify social and environmental impact in terms of money saved for their customers, avoided emissions, and improved air quality, as well as pro-forma cash flow statements showing profit and loss.
  • Define asks ahead of any meetings and define the needed capital. Clearly define what the investment is needed for answering: is it to purchase equipment? To pay staff? To promote your program to your customers through marketing? Each may require sharing specific business plans to supplement proposal and financial requests and support underlying claims about the programs design and its implementation.
  • Come prepared with a 1-page executive summary capturing key program design features, your addressable market (customers), your team and partners, and key financial returns, capital ask, and expected environmental or community benefits. Have a brief slide deck as well.

 

Karina Zafiro