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Impact Investing: Definition, Process, Trends (2023)
April 28, 2023
Impact investing has become increasingly popular in recent years, as investors seek to generate financial returns while also making a positive impact on society and the environment. In particular, impact investing in sustainability-focused startups has the potential to make a significant contribution to creating a more sustainable future.
Sustainability-focused startups are those that prioritize environmental and social impact as core components of their business model or product/solution they are looking to bring to market. These companies seek to solve some of the most pressing issues facing the world today, such as climate change, resource depletion, and social inequality. Impact investors are drawn to these startups because they offer the potential to solve problems they are passionate about, whille also offering a potential for financial returns.
This sector has shown steady growth in recent years; globally, the impact investing market grew from $420.91 billion in 2022 to $495.82 billion in 2023 (a 17.8% compound annual growth rate).
One of the major drivers of that growth is the increase in Millennial investors. According to a 2022 survey by Fidelity Charitable, 61% of Millennial investors have made at least one impact-driven investment.
Of those who have not, 40% still expect to do so in the future. And interestingly, across all age groups, the survey found that investors will look to expand their allocations towards impact investing in the coming year. Here’s why:
Why investors choose to back sustainability and greentech startups
One of the key benefits of impact investing in sustainability-focused startups is that it allows investors to align their investments with their values. Many investors are increasingly concerned about the impact of their investments on the environment and society. By investing in sustainability-focused startups, they can ensure that their money is going towards companies that are making a positive contribution to the world. In fact, Fidelity Charitable’s survey found that this motivation makes impact investing highly satisfying for those who participate:
Another benefit of impact investing in sustainability-focused startups is that it can help to drive innovation. Many sustainability-focused startups are developing new technologies and business models that have the potential to transform entire industries. By investing in these companies, impact investors can help to bring these innovations to market and accelerate the transition to a more sustainable economy.
Impact investing trends to watch in 2023
As we move further into 2023, sustainability-focused startups continue to gain momentum as they tackle some of the biggest challenges facing our planet. With climate change and resource depletion becoming increasingly urgent issues, these startups are driving innovation and creating new opportunities for investors to make a positive impact. Here are some of the hot subsectors to watch in the greentech space this year.
Circular Economy Startups
In 2023, circular economy startups will continue to grow in popularity. These startups aim to create a closed-loop system in which waste is minimized, and resources are kept in use for as long as possible. From recycling and upcycling to product-sharing platforms, circular economy startups are developing innovative solutions to reduce waste and increase resource efficiency.
Carbon Capture and Storage Startups
With the urgent need to reduce carbon emissions, carbon capture and storage (CCS) startups are also gaining momentum. These startups are developing new technologies to capture carbon dioxide from industrial processes and store it underground or repurpose it for other uses. With governments and corporations increasingly committing to net-zero emissions, CCS startups are likely to see significant investment in 2023.
→ CASE STUDY: Carbon Streaming’s $104.9M Raise
Sustainable Agriculture Startups
Sustainable agriculture startups are also poised for growth in 2023 as the world faces mounting food security challenges. These startups are developing new technologies and farming practices that reduce the environmental impact of agriculture and increase productivity. From precision agriculture and vertical farming to regenerative agriculture and alternative protein sources, sustainable agriculture startups offer a range of solutions to create a more sustainable food system.
Green Energy Startups
As renewable energy continues to grow in popularity, green energy startups are also on the rise. These startups are developing new technologies to increase the efficiency and reduce the cost of renewable energy sources such as solar, wind, and hydro. They are also exploring new energy storage solutions to make renewable energy more reliable and cost-effective.
Electric Vehicle Infrastructure Startups
As the demand for electric vehicles (EVs) continues to grow, we may see more developments in EV charging infrastructure in 2023. Companies are investing in technologies to make charging stations faster and more efficient, and we may see advancements in wireless charging and battery-swapping technologies.
Waste-to-Energy Technologies
Waste-to-energy technologies, such as anaerobic digestion and gasification, are being developed to convert waste into energy sources. In 2023, these technologies may see further development, as they offer a sustainable way to dispose of waste while also generating energy.
In conclusion, impact investing offers a unique opportunity for investors to generate financial returns while also making a positive impact on society and the environment. By aligning their investments with their values and supporting innovative companies that are working to solve some of the world's most pressing challenges, impact investors can play a key role in building companies and brands that are focused on sustainable solutions - thereby creating a more sustainable future.
When VCs said no, Monogram turned to retail investors. That decision powered their rise from startup to publicly traded company—and even helped them raise an additional $13M privately after their Nasdaq debut.
The Challenge: Raising Capital on Their Terms
The Challenge: Raising on Their Terms
Monogram Technologies was founded with a bold vision: to revolutionize orthopedic surgery with a robotic joint replacement system using custom 3D-printed joints. The market for this technology is massive—approximately $19.6 billion, with over 1 million knee replacements per year. But it's a capital-intensive, regulation-heavy space—and traditional VCs weren't biting.
Instead of compromising, co-founders Dr. Doug Unis and Ben Sexson went all-in on a different path: retail capital. Why?
- Control and ownership: Not only were they able to raise the capital they needed to grow the business—they did it on their own terms.
- Long-term asset: They wanted to build an army of true believers who wanted to see the company succeed and would continue to reinvest over the years.
- A value-add network: Raising from retail allowed Monogram to amass a waiting list of thousands of patients eager to participate in future trials.
- Aligned incentives: Their mission to improve patient outcomes and build a better future for those struggling with joint pain resonated with retail investors.
The Power of Retail: Monogram's Capital Journey
| Start Date | End Date | Type | Platform | Amount Raised | # Investors |
|---|---|---|---|---|---|
| 3/13/19 | 3/31/20 | A+ | SeedInvest | $14,588,668 | 6,000 |
| 11/16/20 | 1/16/21 | A+ | StartEngine | $2,965,501 | 8,000 |
| 1/17/21 | 2/18/22 | A+ | StartEngine | $23,647,853 | 14,082 |
| 7/15/22 | 3/16/23 | CF | DealMaker | $4,673,000 | 2,249 |
| 3/1/23 | 4/8/23 | A+ | Republic | $232,275 | 120 |
| 3/1/23 | 5/23/23 | A+ | DealMaker | $15,958,364 | 5,198 |
| 5/18/23 | - | Nasdaq listing | |||
| 7/24 | 10/24 | Unit Offering | DealMaker | $12,990,103 | 2,745 |
Monogram Capital Raise Timeline
Monogram's first direct-to-investor raise was a $14.6M round in 2019. Since then, Monogram has raised retail capital six additional times, using Reg A+ as a springboard to a Nasdaq listing in 2023.
Each raise brought in new believers—and more importantly, kept bringing them back. That's the long-term power of retail capital. It's not just one campaign—it's a compounding asset that grows with the business.
$80M+
Raised across seven campaigns
~40,000
Investors championing Monogram's vision
20%
Of each raise came from previous investors
Marketing Excellence
DealMaker Reach provided strategic investor acquisition services, helping Monogram connect with the right audience through high-impact channels.
Premium Publications
Targeted campaigns in premium publications like Morning Brew captured qualified investors
High-Engagement Webinars
Engaging events that generated over $4.3 million in investments
Community Building
Strategic approaches that fostered a loyal shareholder base
Investment Momentum
Innovative approaches that amplified investment momentum
Monogram's Journey to Success
Monogram's journey has been defined by relentless innovation, strategic fundraising, and breakthrough advancements in robotic-assisted joint replacement. From early-stage research to a Nasdaq listing and beyond, Monogram's milestones reflect its evolution into a pioneering force in orthopedic surgery:
- Filed its first patent application in 2017
- Conducted clinical studies at UCLA and University of Nebraska
- Expanded the team with key hires
- Attracted a top-tier advisory board to guide clinical innovations
- Signed their first distribution partnerships
- Made headlines with cutting-edge live demonstrations
- Secured 501(k) FDA clearance for the mBôs surgical system
Nasdaq Debut & Beyond
In May 2023, Monogram Orthopaedics successfully listed on the Nasdaq—a significant milestone offering liquidity and growth opportunities for the company.
For most companies, that would be the end of their story in the private markets. But for Monogram, it was just the beginning of a new chapter.
Public perception says you can't raise privately post-IPO. Monogram proved that wrong.
Defying conventional fundraising norms, Monogram raised an additional $13 million from private investors, powered by DealMaker. This move highlighted the power of a dedicated investor community and provided additional strategic growth capital. Meanwhile, strategic digital marketing for the private offering helped boost the public share price—a win-win for the company and its investors, both public and private.
This was retail capital at its best: strategic, repeatable, and aligned.
One vision. Zero compromises.
This wasn't a one-time raise. It was a multi-year capital strategy.
Retail capital helped Monogram:
- Go from concept to commercialization without relying on VCs
- Retain ownership and control in a high-burn industry
- Build a base of loyal shareholders who invested not once, but over and over again
- Uplist to the Nasdaq, and still keep raising post-IPO
This is what makes retail capital different. It doesn't expire—it compounds. And DealMaker is built to maximize that long-term value.
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