Social impact startups are mission-driven companies that prioritize creating positive change in society or the environment alongside profitability. These startups focus on addressing systemic challenges such as climate change, inequality, healthcare access, and education gaps — using scalable, often tech-enabled solutions.
At Novel Ventures, we see these startups not just as businesses, but as movements. They combine entrepreneurial energy with a deep sense of responsibility, aiming to do well by doing good.
There are several key drivers fueling the growth of impact-driven entrepreneurship:
At Novel Ventures, we’ve helped launch and scale startups that sit at the intersection of innovation and impact — because we believe businesses should contribute meaningfully to the world.
True impact isn’t just about a charitable mission. The best social impact startups embed purpose into their core product or service. Here are a few ways they drive real-world transformation:
And critically, these companies measure what matters — not just profits, but impact outcomes.
At Novel Ventures, we back founders who are as obsessed with impact as they are with growth. We believe the next generation of unicorns will be mission-driven, and we’re building the infrastructure to support them — from early-stage investment to hands-on operational support.
We don’t just invest. We partner. And we help impact-focused startups go from idea to market faster, smarter, and more sustainably.
1. What is a social impact startup?
A social impact startup is a company that seeks to solve societal or environmental issues while also generating revenue.
2. How do social impact startups make money?
They monetize through scalable business models — like subscriptions, marketplaces, SaaS, or product sales — while staying aligned with a social mission.
3. Why are social impact startups important?
They address global challenges using innovative, entrepreneurial approaches that governments and NGOs often can't scale alone.
4. How do investors evaluate impact startups?
Beyond traditional metrics, investors look at impact measurement, team mission-alignment, scalability of the solution, and long-term sustainability.
5. What role does Novel Ventures play in supporting impact startups?
Novel Ventures offers early-stage funding, mentorship, and infrastructure to help founders build purpose-driven, scalable businesses that drive real change.
The rise of social impact startups is proof that businesses can be both profitable and purpose-driven. With the right mix of innovation, sustainability, and impact measurement, entrepreneurs can build companies that change the world for the better.
Whether you're an investor, entrepreneur, or conscious consumer, supporting social impact initiatives drives meaningful change in society. Are you prepared to make a difference?