Relatively recently, a new term of funding came to light. It began to be called crowdimpacting and, in general, it’s understood as the investment made through social impact. With which companies obtain sustainable financing. Today we’ll see what it’s about.

What is crowdimpacting and why is sustainable financing?

We cannot know for sure when this term was originated. But we can say with certainty that in 2015 people began to make reviews of this topic. In most of the articles where the subject is discussed, it’s agreed that it’s a form of financing made by companies. Taking into account the “social impact” and less the “want to make money” factor.

According to the Bolsa Social, crowdimpacting is “a positive change in society through innovative ideas that respond to social challenges of our society and improve the quality of life of people or sustainable initiatives that promote environmental care.”

Crowdimpacting Society
Similar to crowdfunding, crowdimpacting seeks to connect social entrepreneurs with impact investors. To finance social projects. Source: Mas Sociedad

Crowdimpacting then looks for companies and investors to support social projects. Not with an intention that’s only to profit (although this is one of its objectives). But also with the goal of helping society. To do something for the benefit of some community or the environment.

There are platforms that use crowdfunding precisely for crowdfactoring projects. Particularly for companies, investors or anyone interested in creating a campaign dealing with these issues through the Internet. And rely on other companies or people who are interested in helping them.

Other aspects of crowdimpacting

It must be explained that crowdimpacting became what it is thanks to crowdfunding. Crowdfunding began to become popular in 2007 approximately and already in 2014 it was actively used. Several branches of science, technology and art began to look at this method of financing.

Companies were one of the first ones to realize the potential of crowdfunding. Not only as a method to raise money through rewards, but for other purposes. Among them, focus on other issues that concern society and the environment through innovative ideas.

Crowdimpacting Platforms
Start Waves is a peculiar platform, it seeks to allow the financing of crowdimpacting projects. Especially for startups with sustainable business models. Source: startwaves.io

Platforms such as these pose their gaze on companies or investors seeking to carry out this type of projects. They don’t exist in large numbers, but their validity is unquestionable. They usually admit projects of all kinds, but companies and projects are expected to meet certain requirements.

According to a blog entry from Bankinter, some of these platforms (such as La Bolsa Social) set requirements. One of them is to be a company with a “creditable positive social or environmental impact”. Or have “economic sustainability and growth potential”. Among others.

Crowdfactoring Companies Requirements
Since it’s financing for businesses, crowdimpacting platforms require that they’re properly accredited. Source: Rayo Credit

Regardless of the company, crowdimpacting is presented as an opportunity. In this case, so that it can contribute to community problems that address social problems. And to tell the truth, it doesn’t require too much effort more than mere willingness.

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Related: This Is How Crowdfunding Promotes Corporate Social Responsibility

What do you think of crowdimpacting?