April 23, 2025
Investment

How Purpose-Driven Businesses Can Attract Investors


Andi Cross is the Founder of impact consultancy WILDPALM, lead of the Edges of Earth expedition, writer, growth strategist & SSI divemaster.

For some, the drive to protect people and the planet is innate. For others, it develops over time—often through firsthand exposure to how capitalism operates. It’s easy to spend years climbing the corporate ladder, focused solely on financial success, without questioning the way things work. But for a few, that realization comes. Sometimes, after working in a high-rise in New York City, selling luxury goods to the ultra-rich, people recognize that those same skills could be redirected toward something more altruistic.

Through my years in corporate strategy and my global expedition to the edges of the earth, I’ve watched more people open their eyes to this reality—seeking ways to bridge capitalism with the need for a more equitable society and a healthier planet. But this shift doesn’t happen overnight. It’s an evolution that requires rethinking investment, value creation and what long-term success really looks like.

The Role Of Impact Investing

That’s where impact investing comes in. Unlike traditional investing, which prioritizes financial returns above all else, impact investing proves that capital can be a tool for meaningful change—without sacrificing profitability. Instead of fueling the same problems, it funds real solutions. Whether backing renewable energy, conservation-driven tourism, ethical supply chains or mission-driven enterprises, the core idea is the same: Doing good and doing well are not mutually exclusive.

But here’s the reality: The investment landscape is shifting, and fast. In today’s economic and political climate, investors are adapting. What was once a niche sector focused on sustainability, inclusion and social impact is now expanding to include resilience—whether that’s in supply chains, clean energy independence or economic security. In the U.S., organizations are redefining how capital flows into impact-driven ventures, and in Europe, a renewed urgency is fueling innovation in climate tech, circular economies and responsible resource management.

The Impact Investing Ecosystem

In New Zealand, I recently met Roy Thompson, co-founder of New Ground Capital, an impact investment firm that specializes in build-to-rent housing, helping vulnerable communities access better living conditions. Today, the firm manages multiple impact funds, focusing on things like affordable housing for families and investing in sustainable materials and social enterprises.

Collaborative Fund, a New York-based VC firm founded in 2010, backs startups that blend profit with impact. It has invested in companies across food, healthcare and climate tech, and is known for partnerships like the Collab + Sesame fund for children’s welfare and the $200 million Collab SOS fund with Stella McCartney for sustainability.

Meanwhile, in Los Angeles, Regeneration.VC is pushing forward in the early-stage consumer climate tech space. The firm is addressing the fact that we’re consuming far beyond what the planet can sustain. Their portfolio includes companies like Cellugy, Arrive Recommerce, CleanO2, Cruz Foam and other companies focused on circular and regenerative approaches to reshape conventional industries.

These are three examples of many leading the charge. But here’s what’s important: Impact investing is no longer just about doing good—it’s about securing long-term resilience no matter what country one is operating in.

How Startups Can Attract Impact Investors

With the investment landscape evolving, I think the startups that embed purpose into their DNA from day one will be best positioned to thrive. Here’s how to get impact investors’ attention:

1. Build purpose into your model from the start.

Investors are looking for ventures that align profit with purpose. That doesn’t mean forcing sustainability where it doesn’t fit. It means identifying how your product, service or operations can create both financial returns and lasting impact.

Whether through ethical sourcing, waste reduction or community engagement, your business model should reflect a long-term commitment to responsible growth.

2. Show market opportunity and scalability.

Impact investors aren’t just looking for good ideas—they’re looking for ventures that can scale while maintaining their impact. Clear market fit, a viable revenue model and a growth strategy that aligns with your mission are essential.

3. Measure and communicate your impact.

Investors don’t just take your word for it—you need to prove it. Establish key metrics early on that track both financial performance and social or environmental benefits. Whether it’s carbon reductions, waste diversion, fair wages or community initiatives, I’ve found that transparency and data-driven results can make you far more attractive to investors.

4. Adapt to the changing investment landscape.

As policies and priorities shift, businesses need to stay ahead of what impact investors are looking for. In today’s landscape, that means focusing not just on sustainability, but on resilience—whether that’s securing ethical supply chains, adapting to climate risks or ensuring long-term resource availability.

5. Think long-term, but start small.

You don’t need to overhaul an entire industry overnight. Small, intentional steps—choosing sustainable suppliers, designing for longevity over disposability or committing to transparency—lay the groundwork for responsible scaling.

I’ve noticed that the most successful impact-driven companies today didn’t wait for perfection; they started with a clear mission and refined their approach along the way.

The Future Of Impact Investing

Right now, the investment space is changing. Policies are shifting, investors are refocusing priorities, and businesses that embrace resilience, sustainability and long-term impact can emerge as leaders. This isn’t just about doing good—it’s about staying relevant in an economy where adaptability is key.

The businesses that define the next wave of innovation likely won’t be the ones chasing short-term profits. They’ll be the ones building for the long haul, integrating purpose into their DNA, and proving that impact isn’t just possible—it’s profitable. The question isn’t whether businesses have the power to shape the future. The question is: Will they choose to be part of the solution?

The information provided here is not investment, tax, or financial advice. You should consult with a licensed professional for advice concerning your specific situation.


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