What Do Investors Think of B Corps?
Many entrepreneurs want to know whether becoming a Certified B Corporation and/or a benefit corporation will hurt their ability to raise capital. The evidence says no.
According to research compiled by B Lab, 120 venture capital firms have invested more than $2 billion in Certified B Corporations and benefit corporations.
For example, mainstream venture capitalists such as Andreessen Horowitz, GV, Kleiner Perkins, New Enterprise Associates, and Sequoia Capital have invested in Certified B Corporations. Union Square Ventures, a venture capital firm that invested in Kickstarter, says B Corps are appealing because the companies that produce the most stakeholder value over the next decade will also produce the best financial returns.
Rick Alexander, head of legal policy at B Lab, has written, “Since nearly all B Corps are privately held companies, it would be reasonable to start by asking if venture capital firms invest in B Corps. They do. In fact, at this point, nearly every major Silicon Valley venture capital firm has invested in a B Corp.”
“Our B Corp certification is very important to our investors. It helps validate that we are making progress towards our goal of improving the livelihood of agribusinesses in developing nations.”
Some of the Investors in Certified B Corps:
I would love to hear your comments. Does this resonate with you? Do you think that investors are more or less likely to invest in B Corps?
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This article is an excerpt from the new Second Edition of The B Corp Handbook. If you would like to learn more, get your copy of the book today and/or sign up for the online launch event on May 30, 2019. To help us spread the word, please check out our promotional guide for The B Corp Handbook. Sign up for the LIFT Economy newsletter to stay up to date about the book and the B Corp movement. You can follow Ryan Honeyman on Twitter at @honeymanconsult.