IMPACT INVESTING: GIVE MEANING TO YOUR INVESTMENT
Become a player in Impact Investing by investing in royalties.
WHAT IS IMPACT INVESTING?
Imagine investing in innovative projects responding to social and / or environmental issues. Your main motivation is to foster the development of a positive impact solution. In return, you expect a reasonable return on your investment. So you are at the heart of an impact investing approach!
ROYALTIES AND IMPACT INVESTING: THE PERFECT MATCH
Revenue based finance and impact investing are meant to get along! Indeed, the financing against royalties (revenue based financing) makes it possible to grant the interests of the investor and the entrepreneur based on the same value of assets: the turnover. The funded company undertakes to pay its investors a royalty indexed to its turnover / revenue. This type of investment then allows the company to develop by making its impact objective prevail.
► With royalties, the investor does not seek to influence the management via his shareholder rights. Managers thus retain complete independence in making strategic, rapid and long-term decisions.
► There is no dilution of equity, which allows managers to keep their impact objectives as a priority. This is essential in a logic of impact investing.
► Royalties allow the company to finance its growth without going into debt.
► Stakeholders can forget all the issues – and conflicts – related to valuation. It is a simple investment that brings liquidity to investors quickly and gradually, thanks to the collection of quarterly revenue.
It is therefore natural that royalties and impact investing go hand in hand, since each will allow the other to achieve their main objectives.
THE POSITIVE IMPACTS TO BE SUPPORTED WITH WE DO GOOD
At WE DO GOOD, we believe that finance can be used for the common good! To do this, we highlight on our platform projects that have positive social and environmental impacts.
Before a project is published on the platform, our impact committee meets to analyze its positive impacts. Subsequently, social, environmental and economic impact badges are awarded to the project respecting the award criteria.
In addition, projects with a strong environmental impact can apply for the Crowdfunding for Green Growth label. Thus, if the project meets a grid of criteria defined by the French Ministry of Ecological and Solidarity Transition, WE DO GOOD can award it this label. This makes it possible to promote projects working in favor of ecological transition.
Discover the other benefits of royalties:
▶ A comparison of investment methods
To diversify your investments: