Cultivating Impact: Demonstrating the Pivotal Role of Private Capital
We discuss the pivotal role private capital plays among Institutional Investors
John Deere: A Popular Choice Among Institutional Investors
In recent discussions with institutional investors, John Deere's name has come up repeatedly, hailed for its high-impact approach in sustainable agriculture. Their use of AI-augmented drones for targeted weed control demonstrates a significant step in reducing pesticide use, benefiting soil health and ecosystems.
While this innovation is indeed impactful, it's important to delve deeper into what "high impact" truly entails, especially when compared to other groundbreaking technologies in the same field
Rootwave: The Untapped Potential of a Superior Environmental Solution
RootWave (Ubiqutek Ltd), a private UK company that I invested in four years ago, has pioneered a technology that fundamentally challenges conventional agricultural practices. By using electricity to eradicate weeds, Rootwave's solution completely eliminates the need for herbicides. Elimination is clearly better than reduction, setting Rootwave’s patented method apart and marking a significant advancement in sustainable farming.
The Disparity in Capital Access and Its Implications
Despite Rootwave's superior technology and its potential for a profoundly positive environmental impact, the company has found it challenging to source the capital it needs to scale up. This contrasts sharply with John Deere, a $100 billion listed company, with relatively easy access to substantial institutional capital. The disparity in funding accessibility highlights a critical issue in the impact investing landscape: smaller, innovative companies with potentially greater environmental benefits, often struggle to attract the necessary institutional investment.
Rootwave's recent success with crowdfunding reflects public support for their mission and technology. However, their difficulties in securing institutional investment, even at the Series B stage, reveal a gap in the market.
The Imperative Role of Private Market Funding in Impact Investing
The juxtaposition in funding options for companies like Rootwave, relative to larger publicly listed peers, underscores the crucial role of private market funding in advancing the most impactful investments. Private markets are key to unlocking the potential of some of the most innovative companies, with transformative technologies. Such opportunities can generate highly attractive financial returns, alongside positive environmental and social impact, that can help us all. By scaling up private market funding, we can ensure that companies like Rootwave, which have the potential to revolutionize industries with their superior environmental solutions, receive the support and recognition they deserve.
Impactable's Global Asset Impact Network (GAIN) Investment Platform
Recognizing this need, Impactable Investment Group is launching the Global Asset Impact Network (GAIN) Investment Platform. This is an umbrella fund platform designed to offer institutional investors access to funds that specialize in financial-first, impact investment opportunities at scale. GAIN bridges the gap between the high-impact funds, that are essential to provide capital to impactful companies, and institutional investors looking for impactful investments. By focusing on financial-first, high-impact funds, the GAIN platform aims to ensure that investors don't have to compromise on financial returns to contribute to significant environmental and social progress. If you’d like to know more, please don’t hesitate to reach out.
Collectively, as forward-thinking investors, let's advance impact integration in our investment activities. By pushing to be at the forefront of impact innovation, and striving to discover and support the next generation of impact opportunities, we will help shape a more sustainable and prosperous world.
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