CapShift, a Newton-based investment startup, has successfully closed a $5 million Series A funding round to boost the development of its impact investing platform.
The round was co-led by Bain Capital Europe, and Aperior, with firms like Brazen Impact, advisory firm Impact Investors, and Gratitude Railroad also participating. Previous investors like Jesse Fink, Heron Foundation, Spring Point Partners, and Grantham Foundation for the Protection of the Environment doubled down, continuing to support the startup after its pre-seed and seed funding rounds.
The startup has created an impact investing platform that aims to “empower philanthropic and financial institutions” to invest capital in projects with the potential for a social and environmental impact. Adam Rein, CapShift President & Chief Operating Officer, referred to the round by stating:
“We are thrilled to bring together a consortium of leading investors and innovators from the industries of impact and finance to fuel our growth. CapShift is working to unlock billions of dollars of charitable capital to invest in solving the world’s biggest challenges.”
The new funding will be used to expand Capshift’s technology platform, impact investment research database, and advisory capabilities, providing its users with more investment opportunities. At this time, the platform is providing access to more than 1,000 investment funds of all investment segments, providing families with access to high-impact investment portfolios.
With the United States charitable investment capital representing a $1 trillion market, Capshift has been looking to unlock it since being founded in 2019. CapShift is now serving more than half of the major providers in the $142 billion Donor Advised Fund Market via its platform.
CapShift has partnered with Fidelity Charitable, National Philanthropic Trust, Chicago Community Trust, American Endowment Foundation, and other local and national donor-advised fund providers to provide their users with access to a varied array of impact investment opportunities.
With startup funding reaching an all-time high this year, high-impact investing has become increasingly attractive with investors, allowing the investment startup to drive social and environmental impact in an indirect manner.