Tue, 21 June 2022
How to Measure Impact
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Impact startups provide not only a product or service but also a social or environmental impact.
Impact startups need to know how to measure their impact in addition to their financial return.
Here are some ways to measure it:
The startup could measure the impact for each unit sold.
This works well when the impact is the same for each customer.
An example would be a bottle-less solution for water distribution.
The startup could measure the impact based on a sample and then extrapolate across the entire business.
This works well when the impact is not exactly the same for each customer.
An example would be the graduation rate of a student through an education program.
The startup could look at comparable solutions with a stated impact and adopt those metrics.
An example would be the reduction in carbon emissions based on reduced fuel usage.
The startup could apply that metric to their own user base.
Impact investors will look for impact metrics from the startup, so it’s important to measure and track it.
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