It pays to be kind: Ethical companies raise cash over 20 per cent faster
Ethical companies are completing funding rounds around 22 per cent faster than traditional firms, according to the latest research.
Firms focussed on environment, social and governance (ESG) matters round off their fundraiser’s in 17 days on average, compared with 22 for businesses that are not, crowdfunding platform Crowdcube found.
With nearly 75 per cent of investors wanting their funding to make a difference to the world, and the impacts of climate change evermore apparent, shareholders are increasingly being fuelled by ESG efforts.
“One of the biggest drivers of ESG has traditionally been the markets — investors have always been very active proponents,” explained board member of ESG network Chapter Zero and co-founder of Fidelio Partners, Gillian Karran-Cumberlege.
“Now, in the wake of increasing regulation around climate change disclosure, the nudge from markets is beginning to evolve into something much more active, much more to do with holding boards and companies to account. It’s evolving into ESG activism.”
The rise of ESG activism in both boardrooms and investors’ back pockets has signalled a “new breed£ of investors being ushered in.
Chief commercial officer at Crowdcube, Matt Cooper added: “The 1980s mantra of Greed Is Good is long gone, and we’re seeing a new breed of investors who want their money to help make the world a better place.
Home setup service Just Move In hit its funding target in just 24 hours on Crowdcube.
“Just Move In was quick to hit its funding targets, and we’ve seen many more companies attract investors with their ethical ethos,” said Cooper.