Tagged - catalytic capital

As Trump’s USA takes its eye off social impact, Europe’s venture capitalists stand at a decisive moment in history, concluded discussions at the latest FASE Impact Fire Talk. But capital strategies must evolve to unleash VCs’ true transformative power.

USAID's near-shutdown is a reminder of the importance of catalytic capital in impact investing – and also of the question of whether access to cheaper money is necessary for impact investing to really work.

Yes, blended finance has its flaws, but Mariana Mazzucato’s critical UN briefing creates a misleading narrative around its role, says Joan Larrea of Convergence. The approach’s real promise is not as a gap-filler, but a market enabler. 

Award-winning economist Mariana Mazzucato says blended finance is not the promised ‘silver bullet’ in scathing UN policy briefing which argues it fails to mobilise enough private investment to meet the SDGs, while financing needs grow.

INVESTOR IN FOCUS: Africa’s award-winning catalytic investor SAB Foundation has an impressive record in sustaining early-stage impact businesses, viewed as too risky by many. The secret lies in how it supports entrepreneurs.

While blended funds offer a plethora of possibilities, it is wise to keep things as simple and cost-effective as possible, finds Christina Moehrle.

High-impact enterprises can struggle for the funding they need to scale up. Blended finance has a growing track record of being the right tool for the job, finds Christina Moehrle.

Cross-sector collaboration – and government money – are needed as funding gap left by mainstream investors prevents the social economy from reaching its full potential, shows first in-depth study of catalytic capital in UK.

IMPACT 101: What exactly is being blended in blended finance? Why do we need this strategy – and what are the challenges of making it work? Catch up in our explainer with Dalberg's Marcos Paya.