A free curated library of innovations in impact investing terms and investment structures, available to entrepreneurs, investors and impact professionals
Impact Terms offers:
- a platform for newcomers to impact enterprises to learn and evaluate structures;
- a forum to build investor/investee consensus around “neutral” terms; and
- a platform for experts to share their innovations, best practices and experience.
Latest Content
Global Guide to Revenue Based Finance
Background The purpose of this guide and the related articles, is to accelerate the ability for the global community of impact investors to use alternative investment structures. This guide is designed to help entrepreneurs and investors … Read more
Due Diligence Sharing Template
This template agreement is provided to you to facilitate due diligence sharing in impact investment. ImpactTerms has observed that the investment ticket sizes tend to be smaller in impact investing, compared to traditional investments, resulting … Read more
Equitable Ventures
by Eva Helene Yazhari and Mathilde Beniflah There are more venture capital funds today than ever before, including an encouraging amount that have a focus on social or environmental impact. However, impact investors should be … Read more
Case study – Blended Finance Vehicle – California Rebuilding Fund
Case Study provided by Morrison & Foerster Summary Morrison & Foerster LLP was a founding member of the California Small Enterprise (CASE) Task Force, which was formed in March 2020 to address the needs of … Read more
Revenue Based Finance
Revenue Based Finance are a category of contingent payment investment structures where the payment to the investor is contingent on the amount and timing of the issuers financial performance, typically measured by cash basis revenues. … Read more
CASE STUDY – Carried Interest by Verified Impact Calculations (CIVIC)
Introduction In a standard venture capital or private equity fund, the fund manager is entitled to 20% of the fund’s profits. This is known as the “carried interest.” The innovation of Buckhill Capital and Morrison … Read more
Emergence of New Capital Providers – Exploring Alternatives to Traditional Expectations and Structures
EXECUTIVE SUMMARY The Capital Access Lab (CAL) is a national pilot initiative that aims to find, promote, and scale innovative investment managers who are providing new kinds of capital to underserved entrepreneurs and communities in … Read more
Purposes, Priorities, and Accountability in Social Enterprises
This article is a summary based primarily on a chapter in Hybrid Ventures: Advances in Entrepreneurship, Firm Emergence and Growth, Volume 19 titled “Purposes, Priorities, and Accountability Under Social Business Structures: Resolving Ambiguities and Enhancing … Read more
Video: Alternative Term Sheets
Social Venture Circle hosted this interactive webinar on Alternative Term Sheets featuring Drew Tulchin (Upspring Associates), Lauren Grattan (Mission Driven Finance), and John Berger (Toniic). This session explores term sheets and alternative term sheets to … Read more
Why should US Foundations consider PRIs and Equity PRIs?
Authored by: John E. Tyler III; General Counsel, Secretary, and Chief Ethics Officer; Ewing Marion Kauffman Foundation Robert A. Wexler; Principal; Adler & Colvin Program Related Investments (PRIs) are a tool traditionally associated with private … Read more
Program Related Investments (PRIs) for United States Foundations Overview
More and more wealthy families are interested in using their family assets, their private family foundations, and their donor-advised funds to do more than traditional grant making. They are looking instead to make loans to charities, … Read more
Stakeholders vs. Shareholders
The terms shareholder and stakeholder can oftentimes be confused or improperly used interchangeably. Every business has shareholders and stakeholders, both of which are essential to the success of a business, but their relationships to the … Read more
Is ‘Place-based’ investing a crisis response strategy for Impact Investors?
From the Covid-19 public health crisis to its subsequent economic downturn and rising protests against racial inequality in the US, the past few months have ignited impact investors to review their strategies both at the … Read more
Catalytic Capital
In essence, catalytic capital is investment capital (debt, equity, guarantees, etc) with which the investor accepts reduced financial expectations in order to bring about a greater social or environmental impact. Lowered financial expectations refers to … Read more
Re-Thinking Corporate Governance in the context of COVID-19 and crisis bailouts
This article and all the articles tagged Tactics or Ideas are opinion articles and therefore only reflect the view of the author. Corporate governance is the framework of rules and practices by which a board … Read more
Covid 19 is a lesson in why alternative investment structures are needed
This article and all the articles tagged Tactics or Ideas are opinion articles and therefore only reflect the view of the author. Covid-19 is teaching us many lessons that take the form of “that thing … Read more
Social Enterprise
A social enterprise is typically understood to be a for-profit business or a business within a non-profit organization that has a specific social or environmental mission included in the business plan. U.S.-based Social Enterprise Alliancel … Read more
Stock Transfer Restrictions
Investors and founders may agree to restrictions preventing the transfer of shares to buyers deemed not to be aligned with the company’s mission. This provision goes beyond the traditional right of first refusal applicable to … Read more