Impact investor vs. traditional investor: who has raised from both?
Impact investor vs. traditional investor: who has raised from both?
Quick background: I founded a circular economy company 15 years ago. We run a platform for excess capital equipment, today in life science and pharma, working with some of the largest companies in the world. We grew organically, without outside investors, and recently spun out the tech company to scale the model across industries. Now raising capital to speed things up.
Another searcher here suggested I rework my investment summary to lead with impact (equipment kept in use instead of scrapped, lower cost of equipment for innovators) rather than only the numbers. I did, and now I have two versions and one question.
For a profitable, revenue-generating business like this, is it smarter to go after impact investors or traditional financial investors?
Specifically:
- Do impact funds move faster or slower than traditional investors at this stage?
- Do they price the deal differently (valuation, terms, patience on returns)?
- Does leading with impact turn off financial investors, or is it a plus as long as the numbers hold up?
- If you have raised from both, what would you do differently?
Appreciate any war stories. Happy to share the summary with anyone who wants to tear it apart.redacted