Risks, Rewards and Qualifiers
It is important to note that there are risks and rewards specific to any investing including early-stage investing. Impact investors, like all investors, have experienced a wide range of returns on impact and financials. Just as impact investments can result in market rate returns or higher, and can be similar in risk to other investments in similar asset classes, they can also result in sub-market returns, negative returns, or loss of principal, like their nonimpact peers in the venture and angel investing world. Global impact investments can also be subject to fluctuating values in-country due to market size; different reporting, accounting and auditing standards; fluctuating currency valuations; regulatory changes; and political uncertainties. Investors must also determine if they qualify based on regulations in the country where the investment is located. Seeking out trusted in-country partners –investment intermediaries, investor peers and legal assistance – is key for improving outcomes.