Sizing the impact investment market is not easy, because there are such a wide range of investors operating across the spectrum of the ‘impact economy’.
The most recent estimate by the Global Impact Investing Network (based on input from 1,300 investors across all asset classes around the world) pegs the global market at $502 billion of assets. That’s more than twice the equivalent figure the GIIN reported in 2018, highlighting the rapid recent growth of this investment approach.
We can see a similar trend in private equity and venture capital in the UK by looking at Beauhurst data on the deal activity of self-identified impact investors between 2011 and 2019. The total value of these deals will significantly understate the actual size of the impact investing market, since it does not include other funds who also invest in the impact economy, or who deliver measurable social and environmental benefits as part of a broader investment strategy. However, what this data does illustrate is the growing popularity of impact investing, and the increasing engagement from investors.
The data shows that:
- Total deal value was £1.05 billion, with an average deal size of £3.2 million.
- The top 10 companies accounted for 4.2% of transactions, but 58% of total transaction value.
- Almost half of these deals were at the Seed stage, making it the most common category.
- There has been a steady growth in funding over the last years, with total deal value almost tripling since 2016.
