The Impact Score Explained

What Is the Impact Score?

The Impact Score, or the Impact Readiness Score, is a numerical indicator ranging from 350 – 900 that reflects the likelihood a company will attract impact-driven investors. An average score hovers around 650. This generally means the business’s impact readiness is around a middle ground – or that there’s insufficient data available, prompting our scoring engine to use a baseline figure.

What Does the Score Range Mean?

Although in theory the Impact Score spans from 350 to 900, real-world calculations typically land between 400 to 850. This narrower band reflects limitations of the underlying machine learning models and ensures that scores remain both realistic and actionable for investors.

How Is the Impact Score Calculated?

Our advanced scoring engine, powered by machine learning, draws on company profiles from the Hatcher+ greater platform as well as publicly available and licensed data. It evaluates various factors – such as social initiatives, environmental commitments, and governance structures – to determine how likely a company is to attract impact-oriented funding. The scoring system employs best-practice regression and categorization methods to forecast a company’s potential performance relative to its peers.

How Should Investors Use the Impact Score?

For investors, the Impact Score offers a quick way to gauge a company’s potential for positive social and environmental outcomes, alongside financial performance. It’s especially helpful if you prioritize mission-driven ventures.

However, the Impact Score isn’t the only piece of the puzzle – thorough due diligence remains essential. A high score can signal that a company may be more appealing to investors who value impact, but you should still examine all aspects of its mission, strategy, financial health, and long-term sustainability before making any decisions.

What other proprietary analytics does Hatcher+Score provide?

In addition to the Impact Score, Hatcher provides a suite of proprietary analytics to help both investors and startups. These include:

• The Other Components of the Hatcher Score (eight in total)
• Valuation Projection

These tools work together to paint a fuller picture of a startup’s potential, offering insights that go beyond just numbers and into the heart of a company’s mission and future trajectory.