Prescreening Questions to Ask Social Impact Investor

What industries and sectors are you most interested in for impact investing?

This is your starting point. Are you passionate about renewable energy? Maybe sustainable agriculture catches your eye? Knowing which industries or sectors resonate with you can help streamline your choices. So, what’s your passion?

How do you define 'social impact' in your investments?

Everyone has their unique take on social impact. For some, it could mean alleviating poverty. For others, it's about promoting gender equality. How do you see it? Defining social impact in your terms can add clarity to your investment goals.

What criteria do you use to evaluate potential investments for their social impact?

Do you have a checklist? Perhaps a set of non-negotiable standards? Criteria are crucial. They ensure you're not just throwing money somewhere but actually making a difference. So, what’s your go-to evaluation method?

Are there specific social issues or causes that you prioritize in your investment strategy?

If you had to choose, what social issues pull at your heartstrings? Education? Climate change? Human rights? Knowing your priorities can make your impact investing journey more focused and effective.

How do you measure the success of your impact investments?

Metrics and KPIs anyone? Measuring success can be tricky, but it's necessary. Are you tracking improvement in literacy rates? Reductions in carbon footprints? Pinpointing how you’ll measure success keeps you on track.

Are you interested in early-stage ventures, growth-stage companies, or both?

Interested in being a trailblazer, or do you prefer contributing to an already established success story? Early-stage ventures come with high risk but also high rewards, whereas growth-stage companies offer more stability.

Do you prefer to invest in specific geographic regions or are you open to global opportunities?

Are you geographically biased? Sometimes, having a regional focus can make things easier but don't limit yourself. The world's your oyster, after all!

What is your typical investment horizon for impact investments?

Are you in it for the long haul, looking five, ten years down the line? Or do you prefer short-term investments? Your investment horizon can greatly influence where and how you invest.

How involved do you like to be in the companies in which you invest?

Are you the hands-on type or more of a silent partner? Knowing your preferred level of involvement can help you choose investments that align with your style.

What is your approach to balancing social impact with financial return?

Finding that sweet spot between doing good and making money can be a balancing act. What's your take? Are you willing to sacrifice some financial return for greater social impact, or vice versa?

Do you have experience in the sectors you are looking to invest in?

Are you a newbie or a seasoned pro? Experience can make a difference, but fresh perspectives are also valuable. So, what's your background?

How do you assess the potential social impact of a company's leadership team?

A company's leadership can make or break its social impact. Do they walk the talk? Do they have a proven record of social responsibility? Leaders can often be the linchpin in achieving social impact goals.

What is your track record with previous impact investments?

Reflect on past investments. How did they fare? Your track record can offer insights and guide your future decisions. Learn from both your wins and your losses.

How do you ensure transparency and accountability in your impact investments?

Do you have a system in place for regular checks and balances? Ensuring transparency and accountability helps maintain trust and credibility, both for you and the companies you invest in.

Do you have partnerships or affiliations with organizations that support impact investing?

Do you collaborate with other like-minded folks or organizations? Partnerships can provide additional resources, support, and insights, making your impact investing journey a bit smoother.

What role does sustainability play in your investment decisions?

Sustainability isn't just a buzzword; it’s a crucial aspect of impact investing. How much weight do you give sustainability when making investment choices?

How do you address potential risks and challenges in your impact investment portfolio?

Investing is risky business, and impact investing is no different. Do you have a strategy to mitigate risks and face challenges head-on?

Are you seeking co-investors or syndicate partners for your impact investments?

Are you a lone wolf or do you prefer sharing the load? Co-investors can bring additional capital, expertise, and shared risk.

What are your expectations for financial returns in addition to social impact?

Are you looking for just enough to keep reinvesting, or do you have higher financial goals? Setting clear financial expectations can help make balanced decisions.

How do you stay informed about trends and developments in impact investing?

The impact investing landscape is ever-changing. Do you read industry reports, attend conferences, or network with other investors? Staying informed can help you stay ahead of the curve.