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. — Gabriel Mwendwa, Pearl Capital Partners, Uganda
Some of the investors in Certified B Corps include:
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?
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.