By standardizing impact analysis through an AI-enabled platform, purpose-driven companies and their investors can finally gain visibility into the relationship between impact and capital.
PHILADELPHIA, April 13, 2023 /PRNewswire/ — ImpactableX, the world’s first impact rating system to give transparency, insight, and comparability into the social and environmental performance of the private market, announces its launch. Now, investors and companies can have an objective and substantiated way to measure the ROI of social and environmental efforts while being able to cross-compare against other companies through an AI-enabled dashboard.
This comes at a time when the consumer demand for sustainability and social good has resulted in the unprecedented growth of impact investing (now a Trillion-dollar market) despite economic volatility. However, unlike traditional investments, evaluating the impact performance of mission-driven companies remains a challenge, as it continues to be guided by a combination of disparate methodologies and guesswork. A recent report showed that 72% of fund managers have no impact measurement strategy. This results in uninformed investment decisions due to poor due diligence and leaves LPs unsure of whether their dollars really made any difference.
“Until now, investors had no data-informed way of evaluating social and environmental return on investment. Now, they can clearly see the legitimacy of company claims and make decisions to maximize for both financial and impact ROI,” says Catherine Griffin, Impactable Founder and CEO. “By assigning financial value to social and environmental outcomes, we are standardizing impact analysis and helping to direct capital toward solutions that truly move the needle.”
How it works:
Impactable’s platform is the connective tissue between impact investors and private companies, creating a centralized source of impact intelligence across stakeholders. Its AI-powered platform allows users to gain granular insight by collecting and analyzing data across geographies, markets, and key impact metrics that align with both industry and global standards. After users enter a few simple data points, Impactable’s AI quantifies social good and its associated financial value, issuing a rating that reflects the legitimacy of claims. Their proprietary algorithm allows users to aggregate impact across metrics, forecast ROI, contextualize data and compare performance against other companies in real time. Investors gain insight into their companies’ impact performance relative to each dollar invested and give fund managers consistent, transparent, and credible insights.
This data is critical in helping private companies gain the trust of institutional investors at key inflection points in their growth. Dozens of leading venture-backed companies, such as Propel and Natural Fiber Welding, have used Impactable to successfully raise hundreds of millions in capital. Impactable was featured by Fast Company as a World-Changing Idea in 2021 and is backed by Techstars.
Impactable is the World’s first impact rating platform to measure the ROI of social and environmental innovation. It was born out of multiple global cross-sector innovation initiatives in partnership with Bloomberg Philanthropies and the Obama Administration’s Climate Data Initiative designed to catalyze and accelerate world-changing innovation. With strategic partners like Tidal Impact and The Sustainable Oceans Alliance, Impactable is used by dozens of leading venture-backed companies to successfully raise hundreds of millions in capital. It was featured by Fast Company as a World-Changing Idea in 2021 and is backed by Techstars.