Global impact investing grows long term but faces a funding slowdown in 2025

Compared to a decade ago, venture capital (VC) funding into global impact startups has grown 300%. But for the fifth year in a row, VC investment is in decline. Impact startups have raised $33B in 2025 so far, a projected 24% drop from the previous year. Rising geopolitical tensions, scarcer resources, and volatile prices have shifted the focus of funding from a long-term transformation agenda centred around the Sustainable Development Goals to renewed goals of national security, resilience and independence. This shift is the main takeaway from the State of…

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Lack of investments in impact industry threatens progress on Sustainable Development Goals

For the fourth year in a row, venture capital (VC) investment into global impact startups is in decline. Impact startups haveraised $33B in 2024 so far, a projected 28% drop from the previous year. A much stronger drop than the general global VC capital decline of 4% during the same period. This alarming fact is the main takeaway from the State of Impact 2024 report, presented this week in The Hague at ImpactFest by ImpactCity, Dealroom, and Microsoft. This steady decline in impact investments is especially worrying since none of…

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