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Lessons from Alex Honnold on Investing with Purpose

~7 min read
Surreal to meet Alex Honnold in San Francisco
Surreal to meet Alex Honnold in San Francisco

It is often unfathomable to me that just by the virtue of living in San Francisco I get the privilege of going to cool events and accessing influential people from around the world. Yesterday’s experience was one of those. I got the chance to meet and talk to Alex Honnold, world-renowned rock climber known for both pushing the boundaries of human capabilities and his intentional leap into environmental philanthropy. This writeup covers lessons I learned and resources I could utilize to get involved in impact investing/philanthropy as a complete beginner.

Alex started giving away a third of his salary when he was just making $150,000 a year. The way he put it was,

“Wow I made 150 grand last year, let me give away 50k.”

That’s as simple as he gets. Alex is a straightforward guy. He already had the type of projects figured out so he immediately got to work. He had been volunteering for GRID Alternatives, helping to install solar panels in places around the US. From participating in those endeavors, he had a good sense of the amount of impact that bringing electricity into remote areas had. Moreover, installing solar panels was not a hard thing to do. All you need is a solar panel and some wiring equipment and you are set. It was amazing to Alex that something that required such little investment and initial setup work could have so much lasting impact to the community.

Alex split up his first 50k into two grants of $25,000 each which went into funding two solar panel projects. Slowly Alex built a team to help him conduct due diligence on the projects and filter through all the proposals he received to figure out projects that were: (1) the hardest to raise money for and (2) genuinely great ideas. Today Alex gives away $2 Million annually to various solar panel and environmental projects around the world. For reference, the amount of money he gives away from his personal income can be compared to a fund with $50 Million in the bank.

Alex’s Investing Philosophy

Find Projects Driven by Communities

Alex’s upcoming documentary, How To Change The World, highlights one of the renewable projects in Standing Rock, ND that enabled the Sioux Tribe to install solar panels and build wind farms to become self-sustained in terms of their energy needs. This is a key example of a project that checks all three of his criteria: it’s a project that is hard to raise money for, it’s driven by the community, and it’s genuinely a great idea.

The Standing Rock project is hard to raise money for because, unfortunately, not a lot of people in the US care about the Sioux Tribe’s independence and empowerment. It had a high likelihood of completion because the community itself is highly invested in the project. Countless community members were involved in the process of raising funds and figuring out the permits and logistics required for such a project to happen on their land.

Lastly, deep investment from the community is needed to make sure the equipment continues to be used and is properly maintained. A lot of times, engineering projects require up-front investment for the setup, along with a portion needed for future costs of maintenance. If there’s no specific POC (point of contact) in charge of making sure the project is maintained, equipment is likely to go defunct. Therefore, a community-driven project ensures commitment to keep the equipment running to serve people for years to come.

It’s Okay If It Doesn’t Work Out

Alex nonchalantly talked about projects that failed. It seemed like he had come to terms with the fact that not all projects are going to get completed or be used appropriately, and it’s okay if that happens. It’s important to learn from failures and incorporate those lessons when selecting future projects. But failed projects shouldn’t deter more investment. For any beginner, there will be tons of learning opportunities—those shouldn’t dissuade us from making strides in this endeavor.

If It’s a Good Idea, Fund It

Alex heavily leans into this philosophy when figuring out which projects to fund or not. An example of a good idea would be connecting a community to the grid for the first time. He doesn’t rely heavily on precise numbers or a forecast of the impact because it’s often hard to quantify. If it sounds like a good idea and passes a common-sense bar, his team is easily convinced.

Lessons From the Panel: How to Get Started

  • Pick a starter amount. A good starting amount per year is about $500. Alternatively, create a small fund and deploy it over three years.
  • Diversify early. Don’t put all your eggs in one basket. Aim for a small portfolio (≈10 projects) so you can learn—some will fail; that’s expected.
  • Find a friend for the journey. Partnering keeps you accountable and expands your network into opportunities you wouldn’t see alone.
  • Define your lanes. Decide which kinds of projects excite you (see areas below), then build a simple rubric for yourself.
  • Research nonprofits. Start building a shortlist and do light diligence before you commit.

Resources to Help You Get Started

Areas to Explore for Investing

Environmental Sustainability

Focused on addressing climate change, conservation, and resource efficiency.

  • Clean Energy (solar, wind, geothermal)
  • Sustainable Agriculture (regenerative farming, organic food systems)
  • Water & Sanitation (clean water access, wastewater treatment)
  • Circular Economy (recycling, upcycling, zero-waste innovations)
  • Biodiversity & Conservation (reforestation, wildlife protection)

Example: investing in a solar startup that brings off-grid power to rural communities.

Social Equity & Inclusion

Aiming to reduce inequality and empower marginalized groups.

  • Financial Inclusion (microfinance, affordable banking, fintech for the unbanked)
  • Gender Lens Investing (supporting women-led businesses, closing the pay gap)
  • Racial Justice (minority-owned businesses, equitable hiring practices)
  • Affordable Housing (low-income housing developments)
  • Education & Workforce Development (edtech, vocational training)

Health & Wellbeing

Improving access to healthcare and promoting wellness.

  • Healthcare Innovation (telemedicine, affordable diagnostics)
  • Mental Health (therapy apps, community support programs)
  • Nutrition & Food Security (sustainable food production, hunger relief)
  • Epidemic Preparedness (vaccine development, disease prevention)

Sustainable Infrastructure

Building resilient, low-impact cities and systems.

  • Green Buildings (energy-efficient design)
  • Public Transport (electric buses, bike-sharing programs)
  • Smart Cities (IoT for energy efficiency, waste management tech)

Technology for Good

Leveraging innovation to solve global challenges.

  • AI & Data for Social Impact (e.g., disaster prediction)
  • Blockchain for Transparency (supply chain tracking, fair-trade verification)
  • EdTech (remote learning tools for underserved schools)

Community Development

Strengthening local economies and social fabric.

  • Small Business Growth (supporting local entrepreneurs)
  • Fair Trade & Ethical Consumer Goods (sustainable fashion, organic products)
  • Arts & Culture Preservation (indigenous crafts, community arts programs)

I’ll post more blogs documenting my own journey learning more about philanthropy and the models I apply.