Investing in impact startups: the specificities and opportunities for BAs
In 2025, investment in impact startups is a key trend in the entrepreneurial ecosystem, both in France and internationally. These companies are distinguished by their mission, which combines financial profitability with a positive contribution to society or the environment. This model, while demanding, offers BAs unique perspectives to diversify their portfolio, while supporting initiatives aligned with their values. But investing in an impact startup cannot be improvised: it requires an in-depth understanding of the specificities, opportunities, but also the challenges inherent in this type of investment.
What is an impact startup?
Impact startups are companies that put their societal or environmental mission at the heart of their business model. Unlike traditional businesses, they measure their success not only in terms of revenue, but also through impact indicators.
The examples of impact are many and varied:
Environmental: Development of clean technologies, reduction of CO₂ emissions or circular economy solutions, such as the creation of bioplastics from agricultural waste.
Social: Inclusion of marginalized populations, access to education in rural areas, or employment of people with disabilities.
Governance: Transparency in decision-making processes, compliance with ethical standards, or inclusion in management teams.
One of the fundamental aspects of an impact startup is the ability to measure its results. For example, a company focused on the energy transition must be able to quantify the reduction in polluting emissions generated by its solutions. Impact indicators are therefore crucial to convince investors, but also to validate the sustainability of the business model.
The specifics of investing in impact startups
A long-term vision
Investing in an impact startup requires a certain amount of patience. These companies often operate in sectors with long maturity cycles: renewable energies, for example, require years of R&D before generating significant financial returns. Business angels must therefore take a long-term strategic view and be resilient in the face of often unpredictable challenges.
A double assessment: impact and financial viability
Unlike traditional startups, BAs must evaluate two crucial aspects before committing. Is the societal or environmental impact aligned with investors' objectives? Is it measurable and credible? For example, a startup in sustainable mobility will have to demonstrate that it effectively reduces the use of polluting vehicles thanks to reliable data. Is the business model scalable? Are the margins sufficient? For example, a company working in the circular economy must prove that it can make a profit while meeting strict environmental standards.
Access to innovative financing mechanisms
Impact startups often benefit from an expanded funding ecosystem, which mainly includes public grants. In France, schemes such as Bpifrance GreenTech or European funds massively support these companies. Impact crowdfunding is just as interesting. These platforms mobilize communities of investors for projects aligned with common values. These options are not independent of each other, nothing prevents you from opting for a mix of grants, equity, and debt that allows startups to minimize risk and accelerate their development.
The complexity of impact metrics
One of the major challenges for investors is understanding and tracking impact metrics. These indicators may vary depending on the sector. For example, a green tech startup could measure its impact by the number of tons of CO₂ saved; Or, an online education company could quantify the number of students trained and certified.
For BAs, this often involves specific learning and working closely with the leadership team to ensure these metrics are reliable and transparent.
Opportunities for business angels
Accessing Booming Markets
By 2025, sectors such as green tech, renewable energy, connected health and inclusive education will grow rapidly. These markets are driven by societal dynamics and favourable regulations. For example, France has recently strengthened its energy transition plan, which is creating an increased demand for innovative solutions in this area. Startups that position themselves there offer opportunities for high returns in the long term.
Diversify your portfolio with impact investments
Investing in impact startups reduces the overall risks of a portfolio, while integrating an ethical dimension. These companies are also attracting new investors, including millennials and sustainability-minded institutional investors.
Co-investing with strategic partners
Impact startups often benefit from partnerships with large groups or public institutions. For BAs, this opens up co-investment opportunities, reducing their exposure to risk while increasing the chances of success for the companies supported.
Creating a leverage effect through public funding
BAs can also take advantage of public co-financing schemes. For example, subsidies from Bpifrance or European aid can double or even triple the impact of an initial investment.
The Challenges of Investing in Impact Startups
The balance between impact and profitability
Maintaining a balance between societal mission and economic viability remains a challenge. A company that is too focused on its mission could neglect its profitability, while a search for short-term profits risks compromising its impact.
Regulatory barriers
Impactful sectors, particularly in health or energy, are often subject to strict regulations. Investors should therefore ensure that startups have the necessary certifications to operate in compliance with the laws in force.
More in-depth support
Impact startups often require in-depth support from investors. This includes governance, tracking impact metrics, and finding strategic partners. Business angels must therefore be ready to play an active role in the success of these companies.
Conclusion: A strategic commitment for the future
Investing in impact startups represents a unique opportunity to combine financial performance with a commitment to a sustainable future. These companies embody the transformations needed to meet the societal and environmental challenges of our time. For business angels, this means playing a key role in creating a more virtuous entrepreneurial ecosystem. However, these investments require rigorous analysis, close collaboration with the founders, and a long-term vision.
