Thanks for the feedback to yesterday’s first ‘official’ issue (we had been in beta for a while). Today we have one useful story about Ontario and its social impact market – not quite SIBs but worth a read.
As for SIBs themselves, their potential to deliver markets for good is something we feel passionately about, hence this brief daily newsletter whenever there is news from this world!
A seismic shift is occurring in how the world approaches both problem solving and investing. A growing group of social entrepreneurs is building business models to tackle our most pressing problems, from poverty to climate change. We see these innovative approaches through enterprises like Bullfrog Power, d.light Design and Oliberté. Unfortunately, many of these ventures have difficulty securing financing, beyond family and friends, to grow or scale their impact.
A growing group of investors are looking for both a financial return and measurable means of knowing their capital is going to support a better world. From foundations and family offices to major financial institutions and everyday investors, many are choosing to invest in affordable housing, renewable power, sustainable food and enterprises employing persons facing barriers to employment.
They are leveraging what has come to be known as impact investing,which is based on a simple premise: investments and enterprises can be both socially beneficial and profitable. By supporting social or environmental ventures with private capital, we can produce financial returns and achieve change beyond what’s possible with strictly philanthropic giving or traditional investment models.