Insights from an Impact Investor
If you’re looking to raise funds to start up or grow your good business, you may be wondering if investments from individual investors is worth thinking about. I’m here to tell you that it’s not only viable but that there are investors who are looking specifically to invest in businesses that are generating positive social and environmental impact. They are commonly known as impact investors.
I recently had a conversation with Declan Reddington, an impact investor, to garner some insights on why he’s investing in good businesses, what he looks out for, and get some tips for entrepreneurs thinking about approaching an impact investor.
Can you give a brief overview of who you are, what you’re up to, and anything you’re working on/towards that the readers might find interesting?
My name’s Declan Reddington and I’m an entrepreneur and impact investor. I have started, grown, and sold two businesses, and now am focusing on making a positive contribution to my local community and the planet through business.
My background is in marketing and I’m looking for good businesses to invest in and offer some hands-on support.
I moved to Brighton in 2020, from Berlin, as it felt like a real hub for good businesses. I’m a member of The Good Business Club, have joined newly launched South East Angels, and am working in partnership with The Good Business Roadmap course, hosted by Sara Osterholzer, to find good business entrepreneurs to support.
I’ve also invested in The Good Business Club to support their growth strategies this year.
How long have you been investing in businesses?
I’ve been investing in startups for around 7 years now.
It started as a sideline project while I was running both my agencies and has recently developed into something I’m putting more time and energy behind.
What sparked your interest in investing in businesses that are conscious about their social or environmental impact in the world?
I believe businesses need to be focused on their impact on the world to survive and grow. There is absolutely no reason why an impact-led business should not be as successful as a more traditional business. The environment and society benefits, and the business thrives, it's a win-win.
What type of business, or founders, are you looking to invest in this year?
I am looking to support founders and businesses in and around Brighton (UK) who are looking to make a positive impact through their business either environmentally or socially. I’m not focused on just one impact area. It’s more about investing in a good idea or person.
What are some of the traits you look out for when meeting a Founder that gives you a good hunch that they are worth investing in?
Enthusiasm and drive are really important qualities I look for in a Founder. I know from personal experience that it’s really tough launching and running a business and you need to be prepared for some knocks along the way. You need to have self-motivation to pick yourself up and keep going.
What questions should entrepreneurs be prepared for it they are looking for investment from individual investors?
The questions you can expect from me are:
Why are you raising money now and what will it be used for?
Who are your competitors, what makes your product/service different and better?
What’s your background and why are you someone I should invest in?
Do you understand the financials of the business?
When is a good time for a business to be thinking about investment?
The common situations you find founders in when seeking investment are either when there is an opportunity to expand what they are doing, they notice a gap in the market for a product or service, or they are running out of cash.
Any other advice for business owners who are considering approaching individuals for investment?
Have everything ready for Due Diligence, all your paperwork, and important documents ready to go. An investor is usually able to move very fast once they are interested.
Got any other questions about impact investing or getting investment ready? Book a 1-2-1 with me and get feedback or guidance on what you need to prepare as well as steps to take to find the right investor.
What would you do with £20,000?
If you’re a first-time purpose-driven entrepreneur looking for investment to get your business off the ground, join The Good Business Roadmap course and get the chance to pitch to an impact investor for £20,000 at the end of the course.