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ESG Investing & the Future of Wealth

ESG Investing & the Future of Wealth
November 11, 2021

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"Every time you spend money, you're casting a vote for the kind of world you want."

Anne Lappé, Food Justice Advocate & Author


We've heard of divestment from industries that counter the causes we care about (divesting from fossil fuels is a big one). But how can we make investments that line up with our principles?

If you haven't heard, ESG investing is the socially responsible choice for financial investments. It stands for environmental, social, and governance investing, a form of sustainable investing that considers the potential harms and benefits alongside its financial returns.

This area saw a significant boost in 2020, with over $51BN added to ESG investments in 2020, double that of 2019. That money came primarily from women, who are reportedly twice as likely to consider ESG factors in their investments.

Women's Wealth

According to recent reporting by CNBC, U.S. American women are gaining in financial wealth at unprecedented rates. They control almost half of all estates valued at more than $5MM and stand to inherit 70% of the $41TN set to be inherited over the next four decades. By 2030, two-thirds of private wealth will be in women's hands (and investment accounts).

The pandemic may have been detrimental to women's progress in closing the gender wage gap, but it served as a powerful vehicle for women to educate themselves and get investing.

 

                                                                                      Ellevest marketing

Invest Like a Woman
Ellevest is one investing platform explicitly geared towards women. It is quick to call out the financial industry's shortcomings when it comes to women. It has a membership program that includes tiered offerings of 1:1 financial coaching, investment advice, and banking. Overall, the platform is now managing $1BN in assets. Quasi-competitor Robinhood saw its female user-base quadruple between February 2020-February 2021.

Traditional financial advisors skew predominantly male, holding 78% of the positions. There are financial advisory firms devoted to women, such as Mission Wealth in California. However, younger generations indicate they'll prefer to take financial management into their own hands with the help of roboadvisors or investment advice and community on Reddit or Facebook Groups. Moreover, it turns out, women who traditionally lacked confidence in the boys club of finance are actually outperforming their male peer's portfolios.

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[Axios]
Since last week, PrivCo has added:

400 Companies | 83 Funding Activities | 15 M&A Deals

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Funding & Deal Highlights:

 

Osmoses raises $3MM from The Engine

Chemical Separations • Seed • Boston, MA
 

Seasoned raises $18.7MM from Horizon Ventures

Restaurant Recruitment • Round A • San Francisco, CA
 

Point One Navigation raises $10MM from UP Partners

Precision Location for AVs • Round A • San Francisco, CA
 

HawkEye 360 raises $145MM from Insight Partners

Signal Mapping • Round D • Herndon, VA
 

VergeSense raises $60MM from Scale Venture Partners

Workplace Management • Round C • San Francisco, CA
 

Block Renovation raises $50MM from SoftBank

Digitized Home Renovation • Round C • New York, NY
 

ThreeKit raises $35MM from Leaders Fund

 3D Commerce • Round B • Chicago, IL
 

Zenwork raises $163MM from Spectrum Equity

Tax Compliance • Equity • Fayetteville, AK
 

Alcon AG acquires Ivantis for $475MM

Medical Device • Acquitisition • Irvine, CA
 

Monomoy Capital Partners acquires Trinity Highway for $375MM

Highway Construction • Acquisition • Dallas, TX

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