{"id":14781,"date":"2020-01-02T15:08:09","date_gmt":"2020-01-02T09:38:09","guid":{"rendered":"https:\/\/www.the-next-tech.com\/?p=14781"},"modified":"2020-01-03T15:28:16","modified_gmt":"2020-01-03T09:58:16","slug":"impact-investing-for-the-crypto-space","status":"publish","type":"post","link":"https:\/\/www.the-next-tech.com\/future\/impact-investing-for-the-crypto-space\/","title":{"rendered":"Impact Investing for The Crypto Space"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Making an impact is a noble goal for any investor, whether they\u2019re retail or institutional. Impact investing is the practice of investing not only to generate returns, but also social and environmental benefits.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The space has grown tremendously, with impact investing funds amassing over <\/span><a href=\"https:\/\/www.mckinsey.com\/business-functions\/sustainability\/our-insights\/how-impact-investing-can-reach-the-mainstream\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">$77 billion<\/span><\/a><span style=\"font-weight: 400;\"> in assets under management. From an individual\u2019s standpoint, that number seems enormous, but it\u2019s helpful to put it into perspective.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to <\/span><a href=\"https:\/\/ssir.org\/articles\/entry\/almost_everything_you_know_about_impact_investing_is_wrong\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">a Stanford Social Innovation Review article<\/span><\/a><span style=\"font-weight: 400;\">, achieving the United Nation\u2019s Sustainable Development Goals (SDGs) by 2030 requires spending <\/span><i><span style=\"font-weight: 400;\">$5 to $7 trillion<\/span><\/i><span style=\"font-weight: 400;\"> annually. For impact investing to have serious impact then, it needs seriously greater adoption, especially among Main Street investors, who typically haven\u2019t had access to a variety of investment opportunities due to their exclusivity, geographic restrictions, and high investment minimums.<\/span><br \/>\n<!-- Home page 728x90 --><br \/>\n<ins class=\"adsbygoogle\" style=\"display: inline-block; width: 728px; height: 90px;\" data-ad-client=\"ca-pub-9864771813712812\" data-ad-slot=\"3152971286\"><\/ins><br \/>\n<script>\n(adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><br \/>\n<span style=\"font-weight: 400;\">One company that aims to increase adoption is <\/span><a href=\"http:\/\/invictuscapital.com\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Invictus Capital<\/span><\/a><span style=\"font-weight: 400;\">, a group of alternative investments specialists currently launching the <\/span><a href=\"https:\/\/invictuscapital.com\/emsFund\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Emerging Markets Solar (EMS) Fund<\/span><\/a><span style=\"font-weight: 400;\">, enabling anyone to become an impact investor by contributing to global clean energy production via financing solar energy infrastructure projects.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This fund, as well as Invictus\u2019 other funds, is \u201ctokenized,\u201d which means that investors will be able to receive returns from the fund by investing in a single token.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Stanford\u2019s Social Innovation group <\/span><a href=\"https:\/\/ssir.org\/articles\/entry\/almost_everything_you_know_about_impact_investing_is_wrong\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">recommends<\/span><\/a><span style=\"font-weight: 400;\"> that impact investors anchor their strategy to market returns, which Invictus clearly strives to do through methods such as automatically reinvesting earnings to achieve compounding returns, and a partnership with the Sun Exchange, which has a strong track record to-date.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Via the <a href=\"https:\/\/www.the-next-tech.com\/blockchain-technology\/which-is-the-most-blockchain-predictions-for-2020\/\">blockchain<\/a>-based transparency of the fund, Invictus also adheres to Stanford\u2019s second recommendation: Making it clear that change is attributable to an investment. Finally, EMS adheres to the last recommendation of partnering with established players, as evidenced by Invictus\u2019 partnership with the Sun Exchange.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ultimately, the field of impact investing is poised to grow, as reported by a <\/span><a href=\"https:\/\/knowledge.wharton.upenn.edu\/article\/backstreet-to-wall-st-impact-investing-poised-to-grow\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Wharton article<\/span><\/a><span style=\"font-weight: 400;\">. By offering impact investment opportunities through the simplicity of a single token, Invictus is making good on the potential of blockchain.<\/span><br \/>\n<span class=\"seethis_lik\"><span>Also read:<\/span> <a href=\"https:\/\/www.the-next-tech.com\/mobile-apps\/best-tiktok-to-mp4\/\">5 Best Tiktok To MP4 Download (100% Working), No Signup<\/a><\/span>\n<h2><span style=\"font-weight: 400;\">The Future of Impact Investing<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In spite of the incredible potential (and the hype) of impact investing, a lot of challenges are ahead for the growth of the space. As <\/span><a href=\"https:\/\/ssir.org\/articles\/entry\/the_trouble_with_impact_investing_part_1\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">written by SSIR<\/span><\/a><span style=\"font-weight: 400;\">, \u201cthe case for impact is often dubious,\u201d and this <a href=\"https:\/\/www.the-next-tech.com\/supply-chain-management\/supply-chain-visibility-and-transparency-to-be-top-priorities-in-your-business-in-the-upcoming-year\/\">lack of transparency<\/a> can turn off potential investors from entering. When investments are publicly viewable on a digital ledger, greater transparency might convince those investors to enter the space.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Further, there\u2019s still the notion that impact investing isn\u2019t going to generate high returns. In the same article, <\/span><a href=\"https:\/\/ssir.org\/articles\/entry\/the_trouble_with_impact_investing_part_1\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Stanford<\/span><\/a><span style=\"font-weight: 400;\"> writes: \u201cForget it\u2014you\u2019re not going to make any money.\u201d Given the complete transparency of tokenized funds, as mentioned, investors won\u2019t be as amenable towards weak returns, and will demand ROI. This is why funds like the <\/span><a href=\"https:\/\/invictuscapital.com\/emsFund#top\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Emerging Markets Solar fund<\/span><\/a><span style=\"font-weight: 400;\"> are oriented first towards long-term returns.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sure, the idea of impact is <\/span><a href=\"https:\/\/www.vox.com\/future-perfect\/2018\/12\/18\/18136214\/impact-investing-socially-responsible-sri-report\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">complex<\/span><\/a><span style=\"font-weight: 400;\">, and it\u2019s uncertain which projects will truly make a difference. But one thing <\/span><i><span style=\"font-weight: 400;\">is<\/span><\/i><span style=\"font-weight: 400;\"> for certain: Transparency will provide a much-needed boost for the industry.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Making an impact is a noble goal for any investor, whether they\u2019re retail or institutional. Impact investing is the practice<\/p>\n","protected":false},"author":466,"featured_media":14810,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[37],"tags":[933],"_links":{"self":[{"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/posts\/14781"}],"collection":[{"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/users\/466"}],"replies":[{"embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/comments?post=14781"}],"version-history":[{"count":4,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/posts\/14781\/revisions"}],"predecessor-version":[{"id":14852,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/posts\/14781\/revisions\/14852"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/media\/14810"}],"wp:attachment":[{"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/media?parent=14781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/categories?post=14781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/tags?post=14781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}