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Symposium 2014

Virtual Library File - Toniic e-guide to early stage impact investing

The Challenge

Society often rewards philanthropists for giving away their money—think about The Giving Pledge—while scorning those, like hedge funds, who can generate overwhelming financial returns. Turning t ...

Society often rewards philanthropists for giving away their money—think about The Giving Pledge—while scorning those, like hedge funds, who can generate overwhelming financial returns. Turning this equation on its head, and lauding those that take risks to support young but high impact generating businesses will mean changing the nature of how we view capital markets and philanthropy. And this, perhaps, would at last unlock capital for impact investing. Philanthropic capital could be potentially more impactfully spent by providing guarantees against first loss capital to support social enterprises, or through venture debt targeting these businesses. To date, this model barely exists.

Rather than an academic article, this is a detailed but concise guide to impact investing focusing on the early stage companies most in need of patient capital and knowledgeable investors to put socially minded business models into action. This e-guide, which draws from members of the Toniic Network—a global impact investing network—as well as their peers, aims to help those with an interest in investing in early-stage impact enterprises see how this work is being done through global case studies and regional guides.  Readers can go from learning to action as global practitioners in impact investing by using a proposed framework.