Imagine these scenarios: a high potential venture in health or climate change or a deep impact affordable housing strategy crosses your desk. These solutions could transform community, envisioning a scale of impact that is significant. But for various reasons their business model isn’t attractive to traditional investors. It may be because the length of time between experimentation and a viable business model is too long, the business model requires subsidy, or it's simply too risky. As a mission driven investor, what can you do?
This is where catalytic capital comes in. Catalytic capital is patient, risk-tolerant, concessionary, and/or flexible capital that often helps attract additional investors to a project. Without this capital, many high impact deals might never have occurred. And as investors guided by impact, foundations frequently play an important role in providing it. Read these resources to find out how you can be a catalytic capital investor – or might already be playing that role.
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