CLUSTERS

Innovation for social impact

Harnessing financial innovation to allocate capital for social impact.

Private capital has always been a powerful tool for helping to solve humanity’s greatest challenges. In efforts to unlock larger amounts of the USD 200 trillion worth of private capital for social impact, a group of investors coined the term «impact investing». Traditionally, access to such investments offering a large social return with a moderate financial return has been limited to HNWIs and foundations, but new financial innovations are widening access to investors, thus enriching the impact investing ecosystem.

Key trends

new founding platforms

New funding platforms

mobile payments

Mobile payments

Empoweredangel investor

Empowered angel investors

capability sharing

Capability sharing

social trading

Social trading

bank as a platform

Banking as a platform

Implications

Funding for social projects

Funding to purposeful projects with high social return that would not be properly served by the traditional ecosystem.

Access

Retail and institutional investors could get access to investment opportunities that meet triple bottom line returns.

Identification with investment

The ability for investors to closely identify with their investments and their intermediary.

Two key questions

1

As crowdfunding platforms widen access to capital raising activities for impact investment projects, what role can intermediaries play?

2

As more individual investors get involved in funding decisions, the business’ prospects will be tested from multiple perspectives. Can this «wisdom-of-the-crowd-effect» improve the accuracy of overall investment decisions?