Together We RISE: Rewarding Investments through Smart Education

Hello RISE Impact Enthusiasts,

Ever wonder why impact isn’t a priority in investment circles? It’s mainly because the industry is so focused on short-term profits. A lot of experts still think that if your goal is social or environmental impact, you’re giving up financial returns. And honestly, the lack of clear ways to measure impact doesn’t help. This keeps impact investing from being a main topic of discussion. To be frank, this is one of the reasons why I so value private investing. Private impact investing is built from the ground up with a specific impact component in mind, allowing us to prioritize long-term benefits alongside immediate gains.

As a reminder, RISE maintains a comprehensive database of private vetted, exclusive, impactful investments that includes everything from startups to established funds and real estate, spanning all areas of impact. These opportunities vary; some have specific participation qualifications, while others are more accessible. We do this because we all have different levels of savings, communities, and can participate in impact at different levels. Either way, as always, let's share this valuable knowledge of values aligned investing with our loved ones, including our children (it's never too early to start!), friends, and broader community. With that said, let's explore this week’s impactful opportunity.

TEACHING IMPACT INVESTING

Family Impact Investment Discussions

Benchmarking Your Portfolio: An Expert's Guide

Most if not all of us in the RISE community invest in public markets ie everything you know stocks, bonds, mutual funds, etc. As with anything else, I have always started by understanding where I am financially and what the benchmark is. This approach helps to evaluate performance and make informed decisions. Here’s how we share with others how we might approach impact investing.

Step 1: Identify the Benchmark

The S&P 500 is a common benchmark for U.S. equity investors. It represents the performance of 500 large companies in the U.S. and serves as a solid indicator of overall stock market performance.

Step 2: Research Historical Performance

1. Google the Historical Performance: Search for S&P 500 historical performance on search engines.

2. Use Reliable Sources: Refer to financial news sites and investment platforms whichever you like ie Morningstar.

3. Match Time Frames: Align the time frame of your portfolio with that of the S&P 500.

4. Compare Returns: Analyze the annual return of your portfolio against the S&P 500.

Step 3: Adjust for Investment Style

• Diversify Benchmarks: If your portfolio includes more than U.S. large-cap stocks, find appropriate benchmarks for other asset classes.

  • Small-cap indices for smaller companies.

  • International indices for global exposure.

  • Bond indices for fixed-income investments.

Step 4: Incorporate Impact Investing Metrics

Impact investing is about generating positive social and environmental outcomes alongside financial returns. To start incorporating impact metrics:

1. Define Impact Goals: Think about the social or environmental impact you want to achieve.

2. Select Relevant Metrics: We at RISE share Sustainable Development Goals (SDGs) to measure impact.

3. Track and Report: Regularly monitor and report on both financial and impact performance.

Step 5: Integrate Financial and Impact Analysis

• Financial Returns: Continue to evaluate traditional financial performance metrics.

• Impact Assessment: Simultaneously assess the social and environmental returns of your investments.

• Balanced Scorecard: Develop a balanced scorecard that integrates financial and impact metrics for a comprehensive view.

Step 6: Continuous Review and Adjustment

• Review and Adjust: Periodically review your portfolio’s performance against both financial and impact benchmarks.

Ready to make a real impact with community? Email us [email protected]

._{*Please, it is never too early to share these differentiations with others so we are all educated together allowing us all to have an investor mindset. If you need lists or access to any of the above reply back and we will support with our database.}

New Weekly Impact Insight - June 15 2024

Friends,

This time, I'm drawing inspiration from a conversation I had last night with a woman friend who recently invested in a startup. It got me thinking about the process and potential of investing in pre-revenue companies. I wanted to share a hypothetical example to illustrate how such an investment can work, how you can get your money back, and when it might be feasible.

🌟 Renewable Energy Startup Innovating Home Automation Systems

📍 Overview: This startup focuses on developing an innovative, energy-efficient home automation system, optimizing energy consumption in residential properties, promoting sustainability and reducing utility costs for homeowners.

♻️ Impact Goals: Three key aspects of the company’s focus:

Energy Efficiency: Developing smart home systems that optimize energy usage, thereby lowering utility bills and reducing environmental impact.

Sustainability: Offering products that support sustainable living, minimizing the reliance on non-renewable energy sources.

Affordability: Ensuring that their innovative solutions are accessible to a broad market, including low-income households.

Investment Analysis:

To understand how investing in a pre-revenue startup like this one can work, let’s walk through a hypothetical example:

Initial Investment and Valuation:

Imagine you invest $50,000 in this startup when it is pre-revenue. Let’s say the company assigns values to different elements of the startup to estimate its initial valuation:

• Sound Idea: $400,000

• Prototype: $800,000

• Quality Management Team: $900,000

• Strategic Relationships: $1,000,000

• Product Rollout or Sales: $300,000

Summing these values gives the startup an initial valuation of $3.4 million.

Ownership and Growth:

Your $50,000 investment out of the $3.4 million valuation means you own approximately 1.47% of the company.

Let’s say after two years, if the startup's valuation increases to $10 million due to successful prototype demonstrations and strategic partnerships, your stake becomes significantly more valuable. Your 1.47% ownership now represents $147,000 (1.47% of $10 million).

Realizing Returns:

• Selling Shares: If the company raises more funds or you find a buyer for your shares, you can potentially cash out at this new, higher valuation, realizing a substantial return on your initial investment.

• Staying Invested: Alternatively, you might choose to keep your investment in the company, anticipating further growth and a higher valuation in the future.

By investing in companies with strong ideas, prototypes, and strategic relationships, early investors can see significant returns as these startups grow and increase in value.

👉 Login To View Company Name & Listing & Returns👈

_{It's not my rule—it's just how the finance industry works we cannot share private investment opportunities to the 9k that are on this email list. Some private investment opportunities are reserved, please log in. I'm a firm believer that knowledge and community power financial growth for everyone. Irregardless of where we are in our investment journey, we all need this knowledge and discuss with our families.}

Look around at the real estate and businesses out there—there are ones that prioritize making the world better for you and your generation, and some that don't. We want to support those that prioritize these principles. We look for solid plans with great people leading.

P.S. Whenever you’re ready here are a few ways for us to work together:

1. RISE The Movement Impact Circle:

   Join the RISE The Movement Impact Circle, a network where we collaborate, learn, and dive into vetted, exclusive, private, impact investment opportunities. We share two opportunities from businesses, funds, and real estate - all impact presented by women to women. Next monthly meeting - August 13th. Ready to be a part of this circle of change-makers? Join Us. 

2. Impact Investing Education Program:

   Not ready to invest? Begin the world of impact investing with our 12-week Impact Investing program, designed for women who want to make a difference.

3. Partner with RISE the movement:

   Do you share a commitment to making a positive impact? Our RISE community is a vibrant mix of entrepreneurs, investors, and finance professionals. While our individual values may differ, our shared belief in investing for a better tomorrow unites us. We invite you to collaborate with us and showcase how your organization can empower us to excel in impact investing. 

   Together, we're not just investors; we're changemakers.

   Until next week, keep making an impact!

   Warmly,

   ^Tanaha

@risethemovement

www.risethemovement.com

At R.I.S.E (Rewarding Investments Smart Education) we are committed to educating and providing community for women investors at every stage of their impact investment journey. We believe the key to success lies in education, informed decision-making, and using investments to make an impact.

_{Disclaimer:R.I.S.E. the Movement is an educational platform designed to provide informative resources and foster discussions related to personal finance and investing. We are not registered financial advisors, and the content presented on our platform should not be construed as investment advice. Any information shared or discussed on this platform is for educational purposes only and should not be considered as a substitute for professional financial advice. It is important to conduct thorough research and consult with a qualified financial advisor or professional before making any investment decisions. R.I.S.E. the Movement does not guarantee the accuracy, completeness, or reliability of the information provided, and shall not be held responsible for any actions taken based on the content presented. By engaging with R.I.S.E. the Movement, you acknowledge and agree to release the platform, its creators, and contributors from any liability arising from your use of the information provided.}