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Mission Impossible: Can Impact Investment Fill the Pioneer Gap or Is A New Type of Capital Needed?

Steve Schwartz, Upaya Social Ventures


For all the talk about impact investors filling the Pioneer Gap, the fact is most impact fund managers cannot afford not to reap a return, so it is extremely hard for these funds to take chances on novel ideas or unproven approaches. Some organizations are developing new methods for identifying and backing potentially transformative startups, while others have argued that more impact investment capital - and thus more competition for deals - will alter the sector’s risk tolerance and fill the gap. What do these different approaches look like and what impact are they having in re-shaping the ecosystem? How can the industry move beyond all the talk about what resources are needed to change and start to put the real stakes in the ground on a framework that will increase the supply of early stage enterprises?
ghana, impact investing, india, kenya, peru, pioneer gap, pipeline, sme
Panel
Intermediate
Moderator: Scott Anderson, NextBillion Upaya Social Ventures - Brian Arbogast or Sachi Shenoy Grassroots Business Fund - Bob Webster or Harold Rosen Lumana Ventures - Sammie Rayner
Articles authored by Bob Webster and the Upaya duo on the different approaches to developing early stage social enterprises. http://www.nextbillion.net/blogpost.aspx?blogid=3178 http://www.nextbillion.net/blogpost.aspx?blogid=3159

One Response

  1. Jen Tweddell says:

    Some experts have suggested that enterprise philanthropy, the use of grants to bridge the gap between startup and scale, is one possible solution to the pioneer gap. However enterprise grantmaking is difficult in practice and to date relatively little has been published on the specifics of structuring grants to grow a social enterprise and avoid subsidizing a failing business model. The Global Alliance for Clean Cookstoves has developed a grant facility to help early stage cookstove and fuels enterprises overcome the pioneer gap and would be happy to join the panel to share early lessons learned.

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