How donor grants may unlock billions of investment dollars for impact enterprise.
In 2010, JP Morgan released a figure that shocked the investment industry: the group estimated that the potential capital market for impact investing—putting dollars into enterprises that would deliver positive social impact—was between $400 billion and $1 trillion. Buoyed by the success of the microfinance revolution, philanthropists, governments, entrepreneurs and investors began in earnest to see how else they could do well by doing good.
Impact investors have surged forward with capital, ready to support the pioneering entrepreneurs creating fortunes and development gains at the base of the pyramid (BoP). There are now 200 impact investment entities poised to pour billions of dollars into impact enterprises in the next year. They have cast wide nets, but it is becoming increasingly clear that there is a dearth of enterprises that can deliver both the social and the financial returns the investors seek.
This week, more than 250 high-level investors, business executives, entrepreneurs, philanthropists, and academics are convening in Washington to ask the important question: how can public and private actors work together to unleash the potential of the impact economy?
Read the rest of this entry »