Why did Investors Circle decide to partner with GIIRS?
There’s a need in impact investing to move standardization and transparency forward. The more information we have about impact, the less greenwashing will succeed. We need a standardized way to compare apples to apples across different impact areas. We saw great potential to do this with B Analytics. As one of the first B Lab partners, we have built a database of ratings for nearly 200 companies. We are now able to look at longevity and assess trends. We are using this data to see how high impact businesses fare over time, post-investment.
How have you integrated B Analytics into your processes?
Historically, we have had about 200 companies apply to our semi-annual forums. The top 60 or so that made it to our Selection Committee are required to fill out the B Impact Assessment. We work closely with the B Lab team to complete their ratings before they are invited to pitch. Both the average and median scores of our presenting companies over the past two years have been above 80 points.
How are your investors responding?
A lot of new investors are entering the market and looking at these issues with fresh eyes. That group finds B Analytics the most helpful. For example, a new group of IC investors in Minnesota loved it because it helped them navigate complex and unfamiliar territory. To encourage more investors to consider early stage impact investments, it’s critical to equip them with tools that can reduce their anxiety and shorten their learning curve.
In terms of how use of B Analytics affects funding, about 70% of the companies that have received Investors' Circle funding over the past two years have a score of over 80 on the B Impact Assessment—in fact, companies that get funded by us have an average B Impact Assessment score of over 90. Our screening process means we only invite companies with high impact to pitch, but the companies with greater impact according to B Analytics are raising more capital.
We need a standardized way to compare apples to apples across different impact areas. We saw great potential to do this with B Analytics.Bonny Moellenbrock & Rachele Haber-Thompson, Investors' Circle
10,000 Companies 146 Countries 196 Industries 92 Funds