What impact investors look for, and how to get ready
Impact investors want a business that works, a change they can measure and a team they can trust. What they ask, how blended finance works, and a checklist to prepare.
Impact investors put money into enterprises that earn and that change something for people or the planet. They are still investors: they expect their money back, sometimes with a return. What sets them apart is that they also expect evidence of impact, and they will often accept slower growth or simpler terms in exchange for it.
What they look at
- A real problem and real customers. Who pays you, how many of them, and do they come back? Repeat customers are stronger evidence than any market-size chart.
- A business that can stand on its own. What does it cost you to make and deliver one unit, and what do you charge? If every sale loses money, more investment only loses more.
- Impact you can show. Which change do you create, how do you measure it, and what do the numbers say so far? A few honest, well-defined numbers beat big claims.
- A team that can deliver. Investors back people. They look at your experience, how you make decisions and whether you listen.
- Clean records. Accounts, a business bank account, registration papers and contracts. Messy records are the most common reason good enterprises are not ready.
- A clear use of funds. Exactly what the money will buy, what that will change, and how you will repay or return it.
Not all investment is equity
For early social enterprises, selling shares is often the wrong tool. Blended finance mixes types of money to fit the enterprise. The SIA Catalyst Fund plans to offer three:
- Grants, which are not repaid, for work that cannot earn yet
- Recoverable grants, which are repaid if the enterprise reaches agreed milestones, and written off if it does not
- Revenue-share, where the enterprise repays a fixed share of its revenue until an agreed amount has been returned, so repayments rise and fall with sales
Ask any investor which instruments they use and why. The right one depends on how predictable your income is and how much control you are willing to share.
How a process usually runs
Every investor has its own process, but most follow similar steps. The Invest stage of the SIA Pathway runs like this: register interest, screening, due diligence, an investment committee, funding, and post-investment support. Due diligence is where investors check what you have told them. Expect to share accounts, contracts, customer lists and impact data, and to answer detailed questions. It takes time, so start preparing before you need the money.
A checklist to prepare
- Twelve months of income and expenses, even if kept in a notebook
- A business bank account that is separate from your personal one
- Registration documents, or a plan and a date for registering
- Your three to five impact indicators, with definitions and the latest numbers
- A one-page summary: problem, customers, model, traction, impact, team and the amount you need
- A use-of-funds table and a simple plan for the next 12 to 24 months
- Names of two or three customers or partners who would speak for you
If you are not ready yet
Most enterprises are not investment-ready the first time they ask, and that is normal. Accelerate, the 12-week growth programme on the Pathway, is built to get revenue-earning enterprises ready: a growth diagnostic, market access, including the corridor to Saudi Arabia, and investor readiness. Earlier still, Measuring impact on a small budget helps you build the evidence investors will ask for.
When you are ready, the Invest stage connects enterprises with the SIA Catalyst Fund and Pakistan Angels, an angel network that gives investors, including the diaspora, vetted deal flow from the Pathway. Both are launching under the Strategic Plan 2026–2031, and you can register interest now.
Questions to ask an investor
Investment is a long relationship, so check the investor as carefully as they check you:
- What instruments do you use, and what would repayment look like for an enterprise like mine?
- What support do you give after investing, and who will I work with?
- Which impact results will you ask me to report, and how often?
- Can I speak to two enterprises you have funded?
- What happens if we miss a milestone?
- How long does your process usually take, and who makes the final decision?
Good investors welcome these questions. An investor who will not answer them is telling you something too.
