How To Use Impact Reporting to Attract Investors and Customers
Published by Impactable
In the dynamic world of mission-driven startups, the ability to measure and communicate the social and environmental outcomes of your work is paramount. Impact reports have emerged as a critical tool, providing valuable insights and fostering transparency and trust with stakeholders, including investors, clients, and the broader community. These reports are vital in preventing accusations of impact washing and allowing your investors, clients, and other stakeholders to see the research and theory of change that drives your impact claims. When you can show tangible evidence of your impact, it strengthens your reputation and attracts more support.
When Should I Use an Impact Report?
Raising Capital
Demonstrating Impact Potential: Impact reports provide a detailed analysis of the projected social and environmental outcomes of your company. This allows potential investors to understand the full scope of the impact their investment will have in tangible terms.
Quantifying Social Return on Investment (SROI): By quantifying the monetary value of your company’s outcomes, impact reports help investors understand the value generated per dollar they invest in you. This metric is essential for showing the highest potential SROI to your backers.
Check-ins with Existing Investors
Comparing Actual Results to Projections: Impact reports offer a clear comparison between your projected outcomes and the actual results achieved. This helps in demonstrating your effectiveness and areas of improvement, building confidence in your operations.
Providing Necessary Impact Data: Investors often need detailed impact data to report on their own portfolio performance to their stakeholders. By supplying comprehensive and accurate impact reports, you enable your investors to meet their reporting requirements and demonstrate the value of their investment in your company.
Acquiring New Customers
Demonstrating Tangible Outcomes: Impact reports provide clear evidence of the social and environmental benefits your customers contribute to by choosing your products or services. This can be a compelling selling point, especially for mission-driven consumers.
Highlighting Cost Savings: Impact reports can also detail the economic benefits your customers receive, such as cost savings or efficiencies gained by using your products or services. This dual focus on impact and savings can make a compelling case for new customers to choose you over competitors.
How Do I View My Impact Report?
Impact reporting with Impactable is easy and quick! We automate your research and data collection and generate reports for you that are available at the click of a button. To view your automated impact report, follow these steps:
Select the models you would like to include in your report, as well as the proper time period and whether you would like to include your forward-looking projections or your historical actualized results. Click on “generate public profile”.
Select the data points you would like included in your report and add a company logo/description/url, descriptions of your product, and an executive summary for your report.\
Your report is ready! You can either share your custom link or download a static version as a pdf.
What Does My Impact Report Include?
Background information: Clean and beautiful textual displays of your company and executive summaries.
ESG Data: Include all your MSCI ESG metrics in one integrated view.
Aggregate Impact Summary: High level measures of impact performance, including total impact projection, impact multiple of revenue (impact generated per dollar of revenue), and impact multiple of capital (social return on investment). Outcomes are aggregated across all your metrics and models and aligned with global standards like IRIS+.
Outcome data visualizations: See the quantity of each of your outcomes and how they grow with your financial projections.
Full model details: See the full flow of your metrics, outcomes, and valuations displayed in an easy to digest table.
Data sourcing and descriptions: All the sources used to build your model are included in an index to allow for full transparency with your stakeholders.
Want To Get Started?
Impact reports are a powerful tool for mission-driven startups, providing valuable insights and fostering transparency. Whether you are raising capital, checking in with existing investors, or acquiring new customers, these reports offer a clear and comprehensive view of the social and environmental outcomes of your work. By leveraging impact reports, you can make data-driven decisions, enhance accountability, and ultimately drive greater impact.
Ready to see how Impactable can revolutionize your impact reporting? Schedule a demo call with us and take a step towards more impactful growth.