Incentivising Millennial Investors is Key for Impact Investment

Impact investing is a hot topic at the moment. And rightly so! We find this so encouraging because it is timely validation for the work we’ve been doing at our impact crowdfunding platform, SeedTribe. But there is more work to do before this industry can deliver the positive outcomes it promises. Part of this work involves incentivising the millennial generation of investors by giving them access to the best impact investments. Last month I wrote a piece on this ‘democratisation’ of impact investments for Angel News.

I wanted to share the message on here too:

Why Millennial Investors are Key for the Impact Space

“If you think you are too small to make a difference, try sleeping with a mosquito.”

This oft-quoted and amusing aphorism attributed to the Dalai Lama captures the spirit of bloody-mindedness (literally) that can drive anyone, irrespective of category, to their desired destination.

But in some industries, one can’t help but feel that size really does matter.

Early-stage investments are top of the list. For a long time, this space was a stomping ground for suits and wallets; a predominantly male sphere where prestige was gained by backing risky and exciting ventures.
investor stereotype millennial
This (slightly) unjustified stereotyping is not to undermine the important role those traditional types of investor have played in driving innovation.

But it’s important that this model evolve to become more inclusive and conscience-driven.

The advent of crowdfunding kicked off this shift: now individuals could invest in projects based on what they could afford and how much they valued the enterprise. Equity crowdfunding then allowed people to get a stake, as if they were a professional investor, in their chosen companies.

This democratisation helped spur an interest in innovation and startups among those previously unable to contribute. Now anyone could make a difference no matter how small.

However, it has become increasingly apparent that the quality of investments available on mainstream crowdfunding is still far below the level of deal flow available to professional investors.

You are never going to find the next AirBnB on a crowdfunding site. The traditional investors still hold a monopoly at the forefront of innovation.

So what? They will keep investing and funding visionary businesses and the merry parade will go on. We all benefit, right?

But the future they are creating is not one they will have to live with, at least not for very long. And that alters the motivation framework for them.

I’m not trying to denounce these investors or ascribe to them intentions which may or may not be there. But the truth is, the motivations for investing in a company inevitably differ between a 25-year old millennial and a 60-year old.

It’s not unreasonable to assume that, in most cases, the 60-year old will be more interested in wealth creation for themselves and their immediate family, while the younger person will have more concern for the future of the world they hope to inhabit for another 60 years or so.

The Rise of Capital with Conscience

The dramatic uplift in public concern over issues surrounding sustainability and the environment supports this. And it is the millennial generation who are driving this. They have come to realise that the effects of inaction will have irreparable consequences for their futures.
millennial impact investors
Sharing articles, protesting and walking to work are some ways individuals are trying to make a difference. We do these things but still feel too small to make a real difference.

Investing in impact businesses is a potential avenue for a new breed of investors to make a quantifiable difference. Impact or ‘profit-with-purpose’ businesses aim to change the world for the better while turning a profit and generating returns for investors. Included in this open attitude to positive change is a willingness to explore more inclusive methods of raising investment.

Young people, who are more environmentally engaged than ever before and willing to invest in ‘good’, neither have the resources nor the network to invest using traditional methods in the companies their conscience demands of them for a better future.

Luke Gavin, a 26-year old Greentech consultant, knows this difficulty: “One of the frustrating things about the low carbon energy sector is its inaccessibility to the average person – so much of the money comes from large institutional investors.”

A report by Barclays also shows the high appetite among younger generations with millennials four times more likely than older generations to put their money in impact funds.

How are we helping millennial investors?

At SeedTribe, we want to encourage this new generation of conscientious investors. We evaluate and vet the most exciting impact investment opportunities using the UN’s Sustainable Development Goals (SDGs) alongside commercial frameworks and allow people to invest online from £100 in exchange for equity.
UN sustainable development goals millennial
Young people want to invest in the most promising impact businesses. It is a concern for the future motivated not simply by financial reward, but more importantly by the hope of a better world for themselves and future generations. We need to do everything we can to support this.

You can read the original article on Angel News here

Impact Investing Interview #2: Netflix for Independent Films

Last month, I published our first ‘Impact Investing Interview’ with Work For Good who are revolutionising the market for corporate charity donations. Since the publication of that interview, Work For Good is now overfunding (accepting pledges until 30th April) on SeedTribe (Angel Investment Network’s impact-conscious crowdfunding platform). Thanks to those of you who contributed and shared!

For those new to impact investment, the post starts with a concise definition of impact investment, its benefits to investors and its ability to bring about positive and lasting change in the world.

The purpose of this series of interviews is to edify and entertain investors and entrepreneurs with an interest in impact and socially responsible investment/entrepreneurship.

Today’s interview is with Dean Fisher, the Director of Bow Street Media whose latest project ‘Film Ahoy‘ is bringing a socially-conscious angle to online film distribution. It’s an enormous market but often considered ethically-bankrupt.

Film Ahoy is working to change this…

The Interview

Part 1 – About Film Ahoy

What’s your mission?

Our mission is to create an alternative film distribution platform for both consumers and filmmakers. The product we’ve been developing will change the industry and offer great alternative programming. We plan to launch the platform soon with the aim to be online on mobile and eventually on smart TV’s.

Who are your clients?

The digital distribution market has now outgrown the physical distribution market. On one side, our clients are consumers who watch films online; and on the other side, content providers and filmmakers complete our client base.

Norjmaa_poster_awards impact

What stage are you at in your business?

We have developed the technology and the website is ready to go live. We have also got on board an advertising partner who can start selling advertising on the site. So far we have secured over 150 titles to the site and will continue to grow the films on offer. We are going to soft launch the website and then start marketing it to consumers to build traffic and awareness for the Film Ahoy brand.

What’s your business model?

We acquire and place films on the Film Ahoy platform where consumers can watch them for free. All they have to do is watch 2-minute commercial breaks every twenty minutes. If they don’t want to watch the commercials, they will pay £1 per film to own the title and be free of commercials. All revenue is split 50/50 with the filmmakers. We will also generate additional revenue through ad placements on the site.

How much funding have you raised to date?

We have raised £67,500 through SEIS.

What’s next for your company?

We are launching the site in the next couple of weeks. There are a few tweaks being done by our developer next week and then we are ready to go. All of our marketing materials are in place and ready to go live. Each film’s trailer will also be promoted on the web through social media and advert placements. (Here’s a link to the new consumer advert).

Once the site starts to build traffic, we are going to produce the app for IOS and Android. We also have some options to put the site on Smart TV’s which will give the consumer every chance of using the platform.

Part 2 – Film Ahoy’s Potential Impact

impact

What does “Impact” mean to you as a profit-driven company?

We will generate 50% from all advertising and pay per view revenue. We can also generate revenue from Google adverts, product placement, merchandise and the sale of statistics on how many times each film is viewed. The overheads of running the company are quite low so we feel we can turn this into a profitable business in a reasonable time frame.

What are the metrics you will use to track/measure your impact?

We have targets each year on how many views we are looking to achieve. We can assess our progress on a month by month basis. Our reporting system gives us the stats we need to monitor our progress. We can also what campaigns will help drive traffic to the site.

How do you go about choosing and confirming the films to list on your platform?

We attend film markets all year around. The three key film markets are Berlinale in February, Cannes in May and the AFM in November. At the markets, we meet with as many content providers as possible. These can be in the form of filmmakers, sales agents who represent films or distributors. So far we have some signed deals with a large number of companies. They provide us with multiple titles which we curate by initially watching the trailers and the films. At the end of the American Film Market, we had received over 1000 films.

What is the vision for the company?

The vision for the company is to launch in the UK first of all. We want to focus on building the brand and making the platform the go-to place for free independent films. Once we have established ourselves in the UK, we will then move into the US market.

Can you tell us more about the need for Film Ahoy in the film industry? What do you see as the biggest challenges in the film/media industry at the moment and how do you hope to address any of them?

The market has many subscription service providers for every genre. We feel we have a different angle and will appeal to both consumers and filmmakers. For consumers they do not want to subscribe to every service available and some people cannot afford monthly fees. Film Ahoy is an easy-to-use, no-commitment service. Consumers will put up with adverts if the content is free.

We don’t feel that an independent film should be £9.99 to purchase online. Independent films need to be more competitive and priced accordingly. When iTunes came out tracks were £0.69, this took away the need for people to download illegally as it was easier to purchase the track then look over the net and download a virus. Pricing films at £1 to own means that independent films can be competitive.

The industry is becoming more and more challenging. Hollywood Comic book films perform consistently but independent films have to fight to find their voice. We have got the support of the industry and many companies have signed up to provide content. For filmmakers, they can use Film Ahoy as an additional revenue stream. We will also be encouraging people to promote their films on the platform which will drive traffic to the site. Eventually, people will be making films just to go up on Film Ahoy which will give us unique content.

What is your current biggest challenge and how are you seeking to address it?

We feel we need a reasonable marketing budget to grow the company and create awareness for the brand. If we do not raise as much as we hope the growth of the company will be slower.

What are you most proud of/excited about for your business?

We feel this model can really shake up the industry. Cynical people would say how can you compete with Netflix or Amazon. The marketplace is big enough for new players and services which gives the consumer an alternative viewing experience. We feel that Film Ahoy can break into the market and become a global brand.

Interested in Impact Investment?

If you want to find out more about Film Ahoy and their current fundraising round, visit their pitch page on Seedtribe.

Do you anyone who might consider using Work For Good for their business?

Do you know anyone interested in impact investing?

Please consider sharing. You’ll be doing good!