Impact Investing is an innovative investment strategy of providing capital to projects which apart from financial results, also generate positive social and environmental impact. The idea builds on the concepts of ethical investing and corporate social responsibility and moves way beyond. Impact Investing is situated in between philanthropy and private equity, donation and for profit investment. In addition to the traditional categories of costs, profit and the rate of return, impact metrics are also measured.
The Impact Investing market has been developing very rapidly. There are over 200 funds in the world dedicated to this type of investment, which value is over one hundred billion dollars and it is still growing.