In recent years, a significant shift has occurred in the investment landscape, marked by a growing interest in intentionally weaving together savvy investing with supporting positive social and environmental change. This paradigm shift has given rise to a category of investing known as impact investing, which allows investors to intentionally put their dollars to work, both to generate financial returns and to improve society and the planet — “doing well by doing good,” as a popular catchphrase puts it. Examples of desired outcomes for impact investing can include alleviating poverty, improving environmental sustainability, promoting gender equality and fostering better access to healthcare and education.
Launched in 2020, the Citi Impact Fund was founded on the conviction that early-stage venture impact investing can play a meaningful role in advancing access and inclusion for underserved communities. “We are a $500 million, double-bottom line fund,” says Arti Srivastava, vice president at Citi Impact Fund — referring to the “double bottom line” of both financial and social returns. “We use Citi’s own funds to make equity investments in companies that are developing innovative solutions to address some of society’s most pressing challenges.”
Excited by the mission of the AgeTech Collaborative™ (ATC) and the work of its participant companies, the Citi Impact Fund joined the ATC in 2023 as an Investor in order to advance its mission of supporting U.S.-based companies dedicated to high-impact solutions.
Srivastava sees the AgeTech category, and participants in the ATC in particular, as a natural fit for the Citi Impact Fund. “We’re in the midst of a significant demographic shift,” says Srivastava. “The U.S. has a large, growing aging population with significant needs that have not been addressed. We see that as an opportunity to support founders who are developing innovative solutions to fill these market gaps.”
A question that often arises with impact investing is: How do you measure success? With traditional investing, time-honored metrics such as cash flow or year-over-year growth can help give a clear picture of a company’s financial bottom line. When it comes to quantifying the social impact portion of impact investing, different companies have devised various methods for measuring success depending on the goal of the organization.
While many impact investors concede some level of financial gain in return for doing good, the Citi Impact Fund takes a different view. “We’re focused on investing in market-driven solutions to social challenges and viable business models that will sustain and be able to make an impact for the long term,” says Srivastava. “We believe that social impact and financial returns go hand-in-hand. The biggest problems faced by real people are going to provide some of the biggest market opportunities — and these are the kinds of solutions that can move the needle for underserved communities, such as increasing affordability and accessibility.”
The process unfolds one company, one solution at a time, and the Citi Impact Fund aims to be more than just a financial resource. Srivastava reflects: “The entrepreneur journey is very difficult, and it can be very lonely. Beyond leveraging Citi’s resources to help our portfolio companies, we’re here to help and support entrepreneurs, even if they’re not a current Citi Impact Fund portfolio company. We welcome people to come and talk to us, because impact investing is a powerful tool to drive positive change socially, economically and environmentally.”
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