Impact investing breaks the misconceptions that profits and social impacts cannot go hand in hand. As the most active venture capital firm in Indonesia, East Ventures believes that investing in the right companies matters, not only in terms of profit, but also in regards to the social impact.
When it comes to investing in Indonesia, economic and social impacts are two sides of the same coin. As a developing country, Indonesia is full of potential: among its huge youth population, there are millions of entrepreneurs who have great ideas that can benefit not only themselves but also society. What happens in Indonesia is that when a startup comes up with a new solution for existing problems, they actually end up creating a large impact on the society at large as well.
In the past few years, there has been a heightened emphasis on environmental, social, and corporate governance (ESG), even among mainstream investors and venture capitalists. I think this signifies that impact investing has hit a critical mass of companies that are growing so well that they attract more and more investors into the landscape. Globally, the work that is being done into responsible investment is also ascending. It seems to me that impact investing is here to stay.
Source: East Ventures
Written by: Melisa Irene, Partner of East Ventures