We asked founders and presidents of impact-driven companies what key characteristics they prioritize before making an investment. From prioritizing sustainable business models to looking into ESG factors, discover the top five factors these leaders consider.
- Prioritize Sustainable Business Models
- Solve Local Issues
- Demonstrate Measurable Impact
- Seek Scalability Potential
- Prioritize ESG Factors
Prioritize Sustainable Business Models
At RVW Wealth, we prioritize companies with sustainable business models that ensure long-term financial and social returns. Our team of 20 professionals carefully analyzes potential investments, looking for evidence of strong governance and a commitment to positive impact. We’ve found that companies balancing profit with purpose tend to outperform in the long run, delivering better results for our clients’ $1.2 billion in assets.
Jonathan Gerber
President, RVW Wealth
Solve Local Issues
My 30 years of commercial real-estate experience in Riverside have shown me that impact means more than profits. I search for companies aiming to solve local issues, not just sell a product.
For example, I invested in a new irrigation-tech startup helping small farmers conserve water and increase crop yields. By tackling resource scarcity and food security, they built a loyal customer base. An edtech company providing VR headsets and content to underserved schools is addressing education gaps to prepare students for the future. Impact-focused companies gain brand loyalty.
Locally, I sponsored a community festival that increased my website traffic by 23% and revenue enough for employee bonuses. Reach out to support local events with what makes you unique. I shared expertise and had a blast! Your impact and expertise matter most. Leave a positive community impression and future customers will know why they want you.
Joe Stance
Owner, Stance Commercial Real Estate
Demonstrate Measurable Impact
One key trait I look for is how well a company can demonstrate its impact with measurable results. At Lansbox, when we switched to eco-friendly packaging, we reduced waste by 20% within a year. This not only aligned with our sustainability goals but showed a real commitment to making a difference. Companies that track and share these kinds of results are serious about their mission. It proves they’re not just talking about change; they’re making it happen.
Echo Shao
Founder, Lansbox
Seek Scalability Potential
Scalability potential is a key characteristic I look for in companies before considering them for impact investment. At Opnbx.ai, we’ve witnessed how scalable solutions can exponentially increase positive outcomes and drive significant growth. Companies with scalable models are often better-positioned to maximize their impact and provide sustainable returns on investment.
George Suarez
Founder & CEO, Opnbx.ai
Prioritize ESG Factors
One key characteristic I look for before considering a company for an impact investment is sustainable and responsible business practices. In my years of managing large portfolios, I’ve found that companies which prioritize environmental, social, and governance (ESG) factors tend to offer more than just financial returns.
For instance, at Amarra, a company I founded, I was once presented with an opportunity to invest in a firm demonstrating impressive financial metrics. However, digging deeper, their disregard for environmental impacts raised red flags, which led us to reconsider that investment.
This example underscores the importance of ESG factors in impact investing—it’s not just about fostering good corporate citizenship; these practices often signify a company’s long-term strategic planning and resilience, critical for potential investors like us.
Kunal Madan
Founder, Amarra
