How can impact investors build trust and rapport with the founders and communities they serve?

1 Understand the problem

Before you invest in any impact venture, you need to have a deep understanding of the problem they are trying to solve, the context they operate in, and the impact they intend to create. This means doing your homework, conducting due diligence, and engaging with the stakeholders who are affected by the issue. You also need to respect the local culture, norms, and values of the communities you are supporting, and avoid imposing your own assumptions or biases.

2 Align on the vision

Impact investing is not just about writing a check, it is about sharing a vision and a mission with the founders you back. You need to align on the goals, expectations, and metrics of success, and communicate them clearly and transparently. You also need to support the founders' vision and autonomy, and avoid micromanaging or interfering with their decisions. Remember, you are a partner, not a boss.

3 Provide value beyond capital

Impact investors can offer more than just money to the founders they invest in. They can also provide valuable resources, connections, mentorship, feedback, and advocacy. You need to leverage your network, expertise, and influence to help the founders grow, scale, and achieve their impact goals. You also need to be responsive, accessible, and supportive, and listen to their needs and challenges. You are not just an investor, you are a ally.

4 Learn and adapt

Impact investing is a dynamic and complex field, where things can change quickly and unpredictably. You need to be flexible, adaptable, and open to learning from the founders, the market, and the impact. You also need to embrace failure, uncertainty, and experimentation, and encourage the founders to do the same. You are not just a funder, you are a co-creator.

5 Celebrate and amplify

Impact investing is not only about solving problems, it is also about celebrating and amplifying the achievements and stories of the founders and the communities they serve. You need to acknowledge, appreciate, and reward the efforts and results of the founders, and share their stories and impact with your network and the wider public. You also need to inspire, motivate, and empower the founders to keep pursuing their vision and mission. You are not just a stakeholder, you are a cheerleader.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?