investable
B1Pronunciation
UK
- /ɪnvˈɛstəbəl/
US
- /ˌɪnˈvɛstəbəl/
Description
- Suitable for investment
- Profit potential
- Worth funding
- Financially viable
Something is "investable" when it has the qualities that make investors want to put money into it. It could be a new business, a property, a project, or even a fresh idea. If people think it has a good chance to grow and make money, they may see it as investable. The word suggests more than simple interest; it points to a real chance of a financial return. An old building might look full of promise, but without a clear plan to fix it and earn money from it, it may not seem investable. The term is common in finance, venture capital, and real estate.
"Investable" describes an asset, project, company, or idea with qualities that make it suitable for financial investment. It goes beyond simply being able to receive money; it implies a reasonable expectation of generating a return on that investment.
The concept is central to the world of finance and venture capital. Investors aren't just looking for interesting concepts—they need to see potential for growth, profitability, and sustainability. A business plan might be innovative, but if it lacks a clear path to revenue or faces insurmountable challenges, it won't be considered investable.
The term is often used in discussions about startups seeking funding. Venture capitalists will assess whether a company is "investable" based on factors like market size, competitive landscape, management team, and financial projections. It's also common in real estate: a property with strong rental income potential or redevelopment opportunities would be considered investable.
Increasingly, the term extends beyond traditional finance to include "impact investing"—where investments are made into companies that generate both financial returns and positive social or environmental impact. Even these ventures need to demonstrate financial viability to be truly investable. Essentially, "investable" signals a blend of potential reward and manageable risk, making it an attractive opportunity for those looking to grow their capital.
Examples
- 1
Personal savings
After paying off the loan, she had about $20,000 in investable savings.
- 2
Financial planning
The adviser asked about his investable assets, not the value of his home.
- 3
Market liquidity
Many small companies are promising, but they are not investable for large funds because their shares are too hard to buy and sell.
- 4
Pension funds
The new rules made solar projects more investable for pension funds.
- 5
Index funds
The index only includes stocks from its investable universe.
Domain
investable universe
the set of investments a fund or investor can choose from
Forms and spellings
1 form open this card.
Main spelling
- investableadjective