An Investor who combines his or her values with their investments. Impact investing is not as simple as deciding to invest excess money in a Fixed Deposit or invest in real estate.
It’s about pairing your values with your investments.
This is a social business concept and the investment should positively impact upon social and environmental issues.
Be committed for a dual return on your investment, a financial return plus a social and environmental impact.
In addition to your direct financial investment. Investors should be willing to mentor and nurture the social entrepreneur. Assistance can range from help in developing the basics to identifying the right stakeholders and channels to take the product/service to the masses.
Be a long term and risk averse investor. Many social enterprises require longer gestation periods for investors to reap the long term benefits of sustainability.
Be willing to take membership of LIIN and abide by the principles and guidelines of impact investing.
Be willing to work with a multitude of stakeholders in building social entreprises, as well as an impact investing ecosystem in Sri Lanka.
Be willing to collaborate, partner and participate in joint initiatives and engagements with other like-minded impact investors.
Be willing to promote, advocate and lobby for development of impact investing and social entrepreneur growth.
Minimum investment should be Rs. 250,000 with a upper limit of Rs. 2,500,000 as equity, debt or a mix of both.
Your investment should have being earned ethically without any negative environmental and social impacts.
Your name shouldn’t appear in the CRIB report as a defaulter and you should not have been found guilty in a court of law in Sri Lanka or Overseas for any criminal offense.
Checklist of a Social Entrepreneur
Social Enterprises are focused on solving a specific social and/ or environmental problem whilst being run like a business with products and services that are marketed to earn a revenue.
The business should provide solutions to all kinds of social and environmental problems. They maybe global problems or a problem that is limited to your own community. We encourage people to focus on the root-causes of social and environmental problems and propose innovative business solutions to solve them. It may be an innovative product, a service or a business model, a technology-based product or a simple business that generates employment for a vulnerable group of people.
The Product need not be fully developed. We accept businesses in the idea stage, startup stage as well as growth stage.
Existing social enterprises can apply for investment to up scale their impact.
Investments will be in the region of Rs. 250,000 to Rs. 2,500,000 based on the business plan.
Should be willing to offer a percentage of ownership of your company to the investor or you can seek a loan with a periodic repayment plan,or a mix of the two.
A thorough due diligence process will be conducted on your business if you secure investment.
In order to apply, you do not need not have a registered company. However, you will have to register your company if you secure the investment.
This is a social business program, hence, investors expect a financial return as well as a social-environmental impact on their investment.