Why the world of finance must change course
Threats to our societies and our planet have pushed the trend towards sustainable investment practices in the last decade. The UN Sustainable Development Goals (SDG) laid out in 2015 mapped out a pathway to peace and prosperity for all people and the planet by 2030.
Climate change, environmental conservation, ending poverty, improvements in health and education must be addressed equally in the pursuit of economic growth. Policy makers and regulators continue to push for greater transparency and disclosure on ESG considerations throughout the financial system.
Combined with investor appetite, sustainable investing continues to increase as the financial system repositions itself.
No longer a trend, sustainable investing is officially mainstream.
Broadly, there are four types of sustainable investing styles in practice as the international financial system slowly realigns itself with the values of the 2030 SDG agenda. These are ESG investing (environmental, social, governance) investing, SRI (socially responsible investing), Thematic investing and Impact investing.
At Red Ribbon, we align our projects with SDG 8, 9, 10, 11, and 12. By promoting green infrastructure, innovating industry practices in real estate and finance, creating decent employment in emerging markets, we will reduce inequality among countries and influence sustainable consumption and production practices. Inclusive, sustainable economic growth is resilient growth.
Our map for change
We have weaved social and environmental impact into the design of our projects.
Impact is not simply a beneficial side-effect of our strategy; it is the investment objective.
Our investment opportunities further financial inclusion through bridging gaps between developed markets and emerging markets by democratising products, services, and practices in key sectors of digital finance, hospitality, and real estate.
Fostering sustainable growth in less developed regions of the world is central to our goal for an equitable future.
Unlocking the reward potential of emerging markets comes with new risks and greater effort.
Unlike traditional venture capitalists, we believe active ownership influences impact and profitability from the inception of a project.
We invest our own capital in specifically chosen projects taking them from seed to scale.
Newer technologies from developed markets are fused with existing technologies in growth markets to create business models with higher chances of adoption and success.
We understand companies with strong ESG metrics perform better in equities and bond markets.
Optimising capital allocation depends on the ability to measure impact within feasible time frames.
With proprietary software, we collect meaningful, harmonised data at every point in a value chain to achieve transparency and accurate evaluations of impact performance.
We don’t simply check off ESG advantages; we create influence at scale while accounting for long-term risks.
Plotting a clear course
We do venture capital differently. Our incubation model is built on intentionality, active ownership, and measurability.
We create new opportunities based on ease of FDI, market volume, risk and resource evaluations, and impact objectives.
We bring industry leaders on board as CEOs. We select individuals with a shared vision and proven abilities to establish, grow and list an enterprise.
We invest our own capital at seed stage onwards. Through rigorous trials and testing, we take businesses to market readiness.
An investment-ready business - we ensure thorough sell-side due diligence preparing financial information, analysis, metrics at reporting levels required for further equity investment.
Active ownership continues through controlling board presence and performance management to deliver on the business plan.
We maintain our presence and involvement with the business while providing potential exits for investors through a listing on NASDAQ, LSE or BSE.