Impact Investing: Transforming How We Make Money While Making a Difference

by Antony Bugg-Levine, Jed Emerson

A ground-breaking book on the transformative power of impact investing This is the first book to chart the catalytic path of this new industry, explaining how it is and can be a positive disruptive force. It shows how impact investing is a transformational vehicle for delivering "blended value" throughout the investment spectrum, giving a single name to a set of activities previously siloed in enclaves, revealing how they are linked within what is becoming a new field of investing. Written by two leaders in the growing field of impact investing, the book defines this emerging industry for participants on all sides of the funding equation (investors, funders and social entrepreneurs). The authors do not take a normative approach to argue how investors should behave like an investment guide might but show how entrepreneurial people and institutions are already offering an integrated alternative.

Genres: Business, Nonfiction, Economics, Sustainability, Finance

336 pages, Hardcover

First published August 2, 2011

Reviews

[Pamela · Rating 3 out of 5]

A great first read for those looking to understand how to merge their passion for social good with their investment acumen. Nicely lays out the opportunities, risks and limitations of impact investing that anyone interested in the space should be aware of. A bit poetic at times, but overall a quite helpful introduction.

[Laurent De Serres Berard · Rating 3 out of 5]

There are a few good insight spreaded out in the book on Impact investing. Particularly on the characteristics of social enterprises, the need of specialization in Impact Investing that can be accessible by pooling resources and reducing the cost, characteristics of the Social Enterprise and their slow development and need for smaller investment ( and so higher transaction cost), and above all else, the call for a new "Business form" beside for-profit and non-profit that could be recognized by the government to deal and groom Impact Business, and better harness private capital in direction beneficial for private investors and common good as well. The story and ties to the rise of micro financing and lesson learn from it were also interesting. Finally, the recurring principal of additionality, was an interesting concept that I would have interest also to see more in more details.

However, the structure of paragraphs and the writing seemed to me lacking in direction. There was a lot of repetition of the promises and potential of Impact investing, always re-stated in different ways, that made me forget where the section was heading. There is too many times, at the beginning of section, a new "pitch" for Impact Investing that interrupt the flow of the point he tries to make, that is repetitive, and cloud also other elements that the authors tries to present.

Despite it all, this book can be a good introduction to Impact Investing, but should be written in a more factual way, not as a business pitch.

[Gerald · Rating 4 out of 5]

Really good. Covers all the bases with good ideas, content and examples.

[Fred Rose · Rating 5 out of 5]

This is a really nice overview of impact investing. Impact investing is a newish term to describe the range of investments between pur for-profit and non-profit. I like this book for a number of reasons. It's written in plain English (a little too folksy sometimes even). It's not dogmatic or preachy about what to do. It stresses that the point is to solve problems and make impact, and sometimes that a pur for-profit investment (like in clean energy for example) and sometimes it isn't. It has good practical examples and is heavily referenced to ongoing tools and collaborative efforts. From my own perspective in Acara and social ventures, the problem of sufficient capital for these ventures is a very large problem and there are a lot of ideas in this book on how we might address those. We struggle with terms and strategy and it's good to see that the challenges we see are exactly the ones highlighted in this book. Highly recommend this book.

[Maggie Che · Rating 4 out of 5]

I want to quote a paragraph in the book that " Capital markets are created and maintained by people. They were not passed down from the hand of God". It's our action that shapes and creates the future. We've been tired of all the troubles and problems brought out by one value system. It's time to use blended value to not only transport blood to businesses that are doing good but also to establish a system that is more natural to human nature. The pervasive measurement of financial return doesn't indicate it's the right methods we should keep. I believe it's just one stage of human history. What we should achieve eventually is a measurement system that can resonate with human nature and reflect how we make decisions with logic and emotion.

[Jamie · Rating 3 out of 5]

Impact investing focuses on directing capital towards basic social problems being addressed by business models that are at too early a stage of development to attract mainstream investors. The intention is to derive a blended value from investments that consist of a varying degree of social, environmental and financial impacts. The book emphasizes the need to develop a regulatory system that: allows businesses to focus on more than just profits; subsidizes impact enterprises; broadens tax incentives to promote more private capital into the field; sets industry measurement standards; and certifies impact investment managers.

[Maja Šoštarić · Rating 3 out of 5]

Admittedly, at the very outset the authors warn you that they are not that keen on offering normative frameworks. That's perfectly legitimate; however, as an introductory read (which it is, for most of us), this book would have been more useful (at least to me) if it did contain at least some guidelines. Rather, it's so undecided about where to go. At times, it's too metaphorical. As a person who deeply appreciates metaphors, there's no easy way for me to say it, but - for a book that has the objective of informing the reader on groundbreaking concepts such as impact investing, this misses the point, as it reads more like a personal account, and not like an objective piece of work.

[Elizabeth · Rating 4 out of 5]

I had sampled this previously, but read it through prior to the master class with Jed Emerson. Good survey of the current challenges of impact investing across the landscape.
I'd have given it 5 stars, except that the industry is changing so quickly this edition will be out of date in some areas within a year.

[Katherine Collins · Rating 3 out of 5]

This is the first official book on impact investing, and the authors have a clear understanding of the evolution of impact investing (and all of its cousins). They provide a helpful sketch of the landscape, including some of its challenges.

[Kevin Miller]

Don't know where it came from, but I need a better understanding of social investing

Jed wrote it :)

[Stella · Rating 4 out of 5]

Good overview of the impact investing field

[Tamu Schwoeffermann · Rating 4 out of 5]

Very Interesting take, made me reevaluate how I think about non-profits.

[Dee McLadha · Rating 4 out of 5]

A little repetitive and dated but overall a foundational text in the impact investing movement.