Published Apr 13, 2021

Millionaire VC Shares His Advice on How He Became Successful Investing In "Impactful" Companies

Sir Ronald Cohen, the father of British venture capital, delves into the transformative potential of impact investing, discussing how it can address modern challenges like climate change and inequality by reshaping capitalism to drive both profit and social good.
Episode Highlights
Impact Theory logo

Popular Clips

Questions from this episode

Episode Highlights

  • Impact Investing

    Impact investing is about generating profit while also creating positive social and environmental outcomes. highlights that young people today refuse to support companies whose values they don't share, pushing investors to consider impact alongside risk and return 1. This shift is leading to a new economic system where companies must contribute to solving major challenges like environmental damage and social inequality 2.

    We're all aware of risk when we make decisions. But to date, we've left impact out of the picture and things are changing.

    ---

    This movement, termed the 'impact revolution,' is driven by the ability to measure the impact of companies, enabling a more responsible form of capitalism.

       

    Measuring Impact

    Technological advancements now allow us to measure the impact of companies on people and the planet. explains that big data and computing power enable us to quantify factors like pollution and labor practices, which were previously unmeasurable 3. This transparency helps investors make informed decisions that balance profit with positive impact.

    It's the first time humankind can begin to measure what a company does to people and the planet, as well as the profits they lose.

    ---

    By integrating these metrics, we can address complex issues like poverty more effectively, using an entrepreneurial lens to find innovative solutions 4.

       

    Impact Examples

    Real-world examples demonstrate the success of impact investing. shares his journey from being a refugee to pioneering venture capital in the UK, emphasizing the importance of innovation and entrepreneurship 5. He also discusses how companies like ExxonMobil face financial consequences for environmental damage, highlighting the power of transparency in driving corporate responsibility 6.

    Bringing transparency of the good and the harm that companies do is a human right for everyone who's an employee, consumer, or investor.

    ---

    These examples illustrate how impact investing can lead to a more equitable and sustainable world.