We believe several long-term trends are positioning impact investing as a significant growth area for both institutional and individual investors, as people increasingly make decisions about where they work, spend, and invest based on their values.

Approximately 70% of tech company employees think social impact is important when choosing a job. Almost 80% of consumers want to buy from brands based on their values. And two-thirds of investors in venture funds say they prefer impact funds.

Taken together, it shows that being impact-driven like our Lab portfolio companies, can drive competitive advantages with talent, customers and investors. The result, we believe, is higher risk adjusted returns, on a comparative basis, in the alternative asset space.

Where there are outsized returns, capital will follow…

While our Lab portfolio companies will generate outside, we believe that institutional capital will be activated into the space. In addition, as individual investors seek to generate higher returns and do-good in their portfolios, particular in an environment of increasing interest rates, there will be an additional wave of capital into the sector. Y Solve Capital drives this opportunity and is a catalyst for both. 

Notwithstanding, the increase of impact capital, many times there is a tension between early stage capital providers and business builders. Traditional structures cause early stage capital providers to seek a level of capital return that prevents early stage companies to optimize their growth path.

We optimize portfolio company cost of capital and impact investor return.