New Impact Insight - 23 March 2024

🌍 Defining Private vs. Public Impact: A Comparative Look at Investments 🌍

Together We RISE: Rewarding Investments through Smart Education

Hello RISE Impact Enthusiasts,

This week, before diving into our latest Impact Opportunity—a fusion of financial gains with meaningful change 🌟—let's revisit our shared mission: to champion a future 🌍 that tackles today's pressing issues like climate change, healthcare gaps, and gender equality, while paving the way for a flourishing, fair tomorrow. It's about our contribution, using our assets and influence for a legacy that uplifts our society and protects future generations. We're in this because we care deeply.

Thank you for positive feedback on last’s week opportunity.

If you would like to learn all the diverse ways to invest in alignment with your values, across all asset classes - I invite you to join our free 3-day Impact Workshop: "Grow Your Wealth, Impact the World".

As a reminder, we maintain a comprehensive database of 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.

For those who prioritize environmental sustainability, social equity, and fair economic growth, this cutting-edge plant-based leather alternative represents an investment that aligns with your dedication to creating a more sustainable, equitable, and inclusive future.

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🌟 Pioneering Plant-Based Leather Alternative 🌟

Overview: The introduction of the world's first plant-based leather alternative showcases a significant leap forward in sustainable fashion. Created from 60% upcycled fruit and vegetable waste, this material stands out by eliminating the need for plastics, petroleum, or animal products.

Mission: This innovative company is on a mission to transform the way leather is sourced, focusing on utilizing food waste to create high-quality alternatives. Their approach seeks to reduce the environmental impact of traditional leather production, including animal use and deforestation. With a technology patent pending in Italy, they are at the forefront of sustainable material science.

Impact Focus: By repurposing food waste for leather production, this company addresses multiple environmental issues:

Annually, the global leather industry is responsible for the deaths of 1 billion animals.

Nearly half of all leather produced is used in footwear manufacturing.

In the United States alone, 40% of food ends up as waste each year.

Food waste is a significant contributor to global CO2 emissions, emitting 4.4 gigatons annually and accounting for about 8% of worldwide greenhouse gas emissions.

Funding Milestones: The company kicked off with a $1.578M Seed Note in 2022, quickly followed by a $750K Seed Round in 2023. With plans to initiate Series A funding soon, they anticipate starting sales at $800K in 2024, with expectations to triple this figure in the subsequent years.

Market Dynamics:

Consumers: A notable 55% prefer alternatives to traditional leather.

Brands: 38 out of the top 40 fashion brands are actively seeking "vegan leathers.”

Investors: Over $2.3B has been funneled into Next-Gen materials since 2015.

Leadership: The company is co-founded by a female leader and animal protection advocate, who has previously founded a luxury vegan shoe brand. This brand has been instrumental in creating over 30,000 luxury vegan shoes for high-profile clients, emphasizing the viability and demand for sustainable fashion solutions.

Insights: The founder's dedication to veganism since childhood and her successful track record in the luxury vegan footwear market underline the company's potential. Her experience and strategic partnerships in the industry are expected to propel this innovative material into new heights of market adoption and impact.

Considerations for us to ask as we evaluate this other than Financials of course:

  • Does the company have established supplier networks to ensure a consistent supply of food waste for production?

  • How does the durability of this plant-based leather compare to traditional leather over several years?

  • Is there a recycling strategy in place for the material at the end of its life cycle?

  • Is the company planning an expansion into the US market in the near future?

🏷️ Tags in the RISE Database: #FemaleLeadership #AnimalWelfare#FoodWasteReduction#ClimateAction

TEACHING IMPACT FINANCE

First and foremost, a heartfelt thank you to each and every one of you for spreading the word about our newsletter. It's inspiring to see our community of entrepreneurs and investors grow, sharing insights and empowering each other, irregardless of where we are on our financial journey.

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🌍 Private vs. Public Impact: A Comparative Look at Investments 🌍

This week, we spoke with an ESG strategist about how we define impact in our investment database, focusing on tangible outcomes. Here's a breakdown of our approach, highlighting the differences between investing in public companies and private initiatives:

Imagine you're choosing between investing in a well-known, publicly traded company that's started incorporating renewable energy into its operations, versus a private startup that's developing innovative, sustainable farming techniques. Both are impactful, but they're impactful in different ways and scales.

For public companies, the impact is often about improving existing operations to meet ESG standards. These companies are large, established, and their efforts towards sustainability can be significant due to their scale. When we talk about ESG ratings, we're usually referring to these kinds of companies. It's about how well they're integrating environmental, social, and governance factors into their business model and how transparently they report these efforts. The impact is broad and, in a way, indirect, filtered through layers of corporate structure and strategy.

On the other hand, investing in private companies, like a startup focused on sustainable farming, is a bit different. Here, you're often getting in on the ground floor of an innovation that has the potential to directly address a specific environmental or social issue. The impact is more direct, tangible, and sometimes, it's the primary reason the company exists. Unlike public companies, where ESG initiatives might be one part of a larger strategy, these private endeavors can be wholly devoted to their mission from day one.

So, when we talk about looking at a business plan and their objectives in private companies, what we're really saying is that we're evaluating their core purpose, how integrated their impact goals are into their operational model, and how these objectives are designed to produce specific, measurable outcomes. It's not just about being 'less bad' but about being inherently good from the outset.

The difference, then, is not just in the scale or scope of impact but in the nature and immediacy of it. In private investments, especially in areas like farming, energy, real estate, and social impact startups, the impact is woven into the very fabric of what these companies do. It's about funding the future we want to see, directly.

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, an exclusive network where we collaborate, learn, and dive into vetted, exclusive, private, impact investment opportunities.

    Plus, our virtual monthly meetings offer an opportunity to come together, discuss, and discover impact opportunities designed to make a difference. Next cohort begins in April. Ready to be a part of this circle of change-makers? Apply now for membership. 

  2. Impact Investing Education Program:

    Dive into the world of impact investing with our 12-week Impact Investing program, designed for women who want to make a difference. This cohort will not only educate you on essential investment strategies but also connect you with a network of like-minded women. Our weekly live sessions are tailored to empower you in navigating both public and private markets, helping you grow your wealth across various asset classes while contributing positively to the future. It's more than investing; it's about shaping a better world for the next generation.

  3. Partner with RISE the movement:

    Do you share a commitment to making a positive impact? Our RISE community is evolving to be 25% finance or fund related, 60% business owners and 15% impact 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

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@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 investment journey to invest impactfully. We support Values - Aligned Financial Planners.
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.

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