The high density of household famous tech brands in the West Coast and the social and environmental factors that characterise the state have coalesced to make it a leading light in the area of impact investing and using technology for a higher purpose.
Climate change hits the fifth biggest economy in the world right where it hurts: the wallet. Droughts, wildfires and power crises have turned Californians into champions of environmental sustainability and that is reflected right through the whole state’s business community.
Google-owned Waze, a community-sourced maps app, also became a critical tool for evacuees to navigate around moving wild fires as they fled danger zones.
Even BlackRock, the biggest asset manager in the world, is getting in on the act, using its strength to exclude certain stocks from its funds (gun manufacturers and retailers for instance), divesting from businesses which lack purpose or long term vision and playing the part of activist where it retains an interest.
“Without a sense of purpose, no company, either public or private, can achieve its full potential,” wrote BlackRock’s CEO Larry Fink in a lengthy open letter to business leaders. Fink urges companies to extend their horizons beyond maximising short term gains to look at what gives them purpose and allows them to make sustainable decisions. After all, what’s the long-term point in investing in a company that will cease to exist 5-10 years from now?
At 4YFN, we connect investors with the high impact businesses that will be making the difference four years from now and far beyond. Our aim is to build the startup ecosystem for a better future and LA is one of the top ecosystems in the world to do it. That’s why we are partnering with communities like Founder Institute and Techstars in LA next month and always seeking to elevate tech for good projects.
To join us on this mission, go to 4YFN.com.