From Swell to Grow, These Startups Are All About Social Impact Capitalism

This week the California startup Swell Investing launched a mobile-friendly investment portfolio service designed to help diverse users invest in companies making a social impact. Compared to other investment portfolio service providers, Swell offers a simplified process with more affordable options. The minimum investment is just $500. Users can choose from six thematic portfolios focused on causes like clean water or renewable energy, just to name a few.

“It’s a first-time opportunity for all to have access to impact investing, which was historically more for higher net worth individuals due to the high minimum,” Swell Investing CEO Dave Fanger told International Business Times. “These are long-term, global challenges that we see as the leading industries of tomorrow.“

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A lot of people value investment ethics over profits. A 2016 study by the U.S. Trust found 85 percent of surveyed millennials said they were interested in, or already owned, social impact investments. But it’s still tricky for young people to find options that fit their budgets. Swell charges 0.75 percent of the assets’ value for managing long-term portfolios, around 32 cents a month for a $500 investment.

Swell’s portfolio options include a combination of household names and relative newbies, from Whole Foods in the Healthy Living category to Moog Inc., a lesser-known wind power manufacturer. “We’re making sure for each company, Moog and Whole Foods, that they have revenue,” Fanger said. “We also want to make sure that they are targeted toward the U.N. Sustainable Development Goals.”

Although all the companies included in Swell’s portfolios underwent rigorous screenings, corporate accountability is tricky to quantify. For example, the Chicago Tribune reported in December that Whole Foods employees filed a lawsuit against the health food franchise allegedly for firing whistleblowers who revealed the company was cheating employees out of their bonuses.

Even if you aren’t interested in Swell’s portfolio options, that company isn’t the only startup aiming to make ethical capitalism more accessible for the masses. Here are three more socially conscious startups that want to help people put their money where their mouths are:

Grow

The San Francisco fintech startup Grow has a mobile app that helps investors analyze portfolio options based on factors like environmental impact, social responsibility, industry type and assets. TechCrunch said users can add money to their Grow accounts or schedule monthly deposits by linking Grow to their bank accounts. Both will allow Grow automatically to invest in personalized portfolios. Mindful investing has never been easier.

DoneGood

Last year the startup DoneGood launched a mobile app and browser extension, which help shoppers find more ethical alternatives to name brand products.

"It is a misnomer that ethically made products are always more expensive. We have done business with companies who are very competitive with their big-name counterparts," DoneGood co-founder Cullen Schwarz told CNBC. It’s pretty easy to use, similar to a simple Google search. Users can even search for specific features like “locally sourced” or eco-friendly options.

Good On You

The Australian Good On You mobile shopping app is a free way to find ethical fashion alternatives while learning about the environmental and the social impact of mainstream retailers and designers. Sandra Capponi, head of the startup’s business development, told IBT the app has 50,000 registered users and offers ratings for more than 1,200 brands.

Right now the company is mostly focused on Australia and North America. But they are set to expand after the next round of fundraising. “Even though ethical shopping can be hard, really hard, there’s hope,” fashion connoisseur Micaela Marini Higgs wrote for Racked. “We’ve just got to keep reading, keep researching, and keep paying attention.

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