October 21, 2021
The Brief - Daily Insights into Impact Investing
Featured: Returns on Inclusion
Living Cities’ Joe Scantlebury sees cities as the template for an inclusive America. U.S. President Joe Biden wants to "build back better." Joe Scantlebury is out to make sure the rebuild includes all Americans. “I grew up in a single-parent household. I'm real clear on the hardships that we face,” says the incoming CEO of Living Cities, a 30-year-old collaborative of 19 philanthropic foundations and financial institutions investing to close racial income and wealth gaps. “It's important that we have policies that really enable the majority of Americans and a significant portion of our population to participate in the full economy.” Brooklyn-born Scantlebury takes the helm at the nonprofit following the departure of long-time CEO Ben Hecht. The outpouring of empathy following the murder of George Floyd created an opportunity to reach for a collective humanity. Now it’s time to deliver, Scantlebury says in a Q&A with ImpactAlpha.
Dealflow: Democratizing Impact
Cameroon’s Ejara raises $2 million for impact-focused crypto. Crypto is having a moment in Africa. Dozens of African fintechs promising to democratize access to cryptocurrencies across the continent have raised venture capital funding. Ejara was launched by Nelly Chatue-Dio to serve financially-underserved consumers in francophone West Africa, especially women. The woman-led startup offers simple, mobile-based cryptocurrency investment and savings options, as well as financial literacy tools. Ejara’s $2 million funding round was backed by CoinShares Ventures, Anthemis Group, impact investor Mercy Corps Ventures and others.
Signals: Countdown to COP
$100 billion is just a down payment on financing the climate transition in developing nations. For want of a nail... the kingdom was lost, as the old proverb goes. For want of $100 billion, a global climate agreement may be lost. Whether wealthy nations will meet their (repeated) promise to deliver $100 billion per year to help developing nations address climate changes may determine the fate of the COP26 global climate summit kicking off in Glasgow in 10 days. Africa’s main negotiator is calling for wealthy nations to raise their payments more than 10-fold, to $1.3 trillion per year by 2030. Private sector financing is critical to bridge the yawning gap. And the emerging consensus holds that such private financing depends on ‘catalytic capital’ to mitigate risks of investing in many emerging markets (see, “Deploying catalytic capital to bridge financing gaps for climate action”). Some promising approaches:
Agents of Impact: Follow the Talent
ImpactAlpha partner event: “Humankind: Deploying innovative investment structures to accelerate inclusion,” is among the breakout sessions at the Next Normal Now series on regeneration from the Global Impact Investing Network, Wednesday, Oct. 27. Guests include Alix Peterson Zwane of Global Innovation Fund, Stephen Buchanan of Mosaic Capital Partners and Gustavo Katz Braga of Common Fund for Commodities. RSVP today.
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Catalytic Capital | October 20, 2021
MacArthur’s Debra Schwartz on catalytic capital, cost curves and contributing to solutions (podcast)
ImpactAlpha, Oct. 20 – The readers have spoken. When ImpactAlpha asked subscribers last year to rank the topics where they wanted to see more …
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Impact Voices | October 18, 2021
Taking action against violence and sexual harassment at work through gender-lens investing.
In the past eighteen months, the global community has clearly seen that the COVID-19 pandemic has had a disproportionate effect on women. The …
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Dealflow | October 18, 2021
Smallhold secures $25 million to grow organic mushrooms in local warehouses
ImpactAlpha, October 18 — Consumers are demanding locally-grown and climate-friendly food options. Brooklyn-based Smallhold is growing organic mushrooms in local warehouses for nearby …
Editor's Picks
Catalytic Capital | October 20, 2021
MacArthur’s Debra Schwartz on catalytic capital, cost curves and contributing to solutions (podcast)
ImpactAlpha, Oct. 20 – The readers have spoken. When ImpactAlpha asked subscribers last year to rank the topics where they wanted to see more …
Ba Ria, Vietnam | Photo credit: Dong Nhat Huy
Impact Voices | October 18, 2021
Taking action against violence and sexual harassment at work through gender-lens investing.
In the past eighteen months, the global community has clearly seen that the COVID-19 pandemic has had a disproportionate effect on women. The …
Photo credit: Life & Thyme.
Dealflow | October 18, 2021
Smallhold secures $25 million to grow organic mushrooms in local warehouses
ImpactAlpha, October 18 — Consumers are demanding locally-grown and climate-friendly food options. Brooklyn-based Smallhold is growing organic mushrooms in local warehouses for nearby …
Top Stories
Living Cities’ Joe Scantlebury sees cities as the template for an inclusive America
Catalytic Capital | October 21, 2021
$100 billion is just a down payment on financing the climate transition in developing nations
Catalytic Capital | October 21, 2021
Republic raises $150 million to ride the growth of equity crowdfunding
Dealflow | October 21, 2021
SMBX raises $11.5 million to democratize small business lending
Dealflow | October 21, 2021
Cameroon’s Ejara raises $2 million for impact-focused crypto
Africa | October 21, 2021
Deploying catalytic capital to bridge financing gaps for climate action
Catalytic Capital | October 20, 2021
Optimizing for Impact: Assign an ABC goal type to each investment (video)
Impact Management | October 20, 2021
Brazil’s Monashees targets $700 million for early- and growth-stage impact
Dealflow | October 20, 2021
CarbonCapture secures $35 million to suck carbon from the atmosphere
Clean Energy | October 20, 2021
How to ride the climate transition with more than a dozen exchange-traded funds
Climate and Clean Tech | October 19, 2021
Sudan’s first foreign venture capital investment in 30 years: $5 million for Alsoug.com
Africa | October 19, 2021
Echoing Green and Goldman Sachs team to back Black women social innovators
Dealflow | October 19, 2021
Capitalism Reimagined
Photo credit: Workable's Resources.
Capitalism Reimagined | October 12, 2021
Omidyar Network commits $10 million in grants for reimagining capitalism
ImpactAlpha, October 12 — Markets can be, and are being, reshaped by movements, policies and investments. Omidyar Network, which has spun off a …
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Stewardship | October 5, 2021
Retail investors get new tools to flex their collective power as engaged shareholders
ImpactAlpha, Oct. 5 – When online investors drove up the shares of GameStop in January, stock market watchers were captivated by the drama, …
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Capitalism Reimagined | September 17, 2021
The Call No. 30: Universal owners aim to turn shareholder power into real-world impact
ImpactAlpha, Sept. 16 – Universal owners are leaning into their power as long-term stewards of capital. Asset owners and managers are deploying a flurry …
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Capitalism Reimagined | September 14, 2021
Disinformation poses systemic risks – so universal owners are pressing media companies to renounce it
ImpactAlpha, Sept. 14 – Talk about negative externalities. False information intended to mislead viewers on climate, COVID-19, racial justice and other issues may drive …
Conservation | September 14, 2021
Move over SPACs. Here come NACs to turn ecosystem services into tradable assets
ImpactAlpha, Sept. 14 – The New York Stock Exchange is seeking approval for a new kind of publicly traded asset based on the …
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Agents of Impact | September 10, 2021
Universal Owners
ImpactAlpha, Sept. 10 – When you own everything, you don’t want everything to go to hell. That’s the simple concept behind the emerging doctrine …
Photo credit: Getty
Climate Finance | September 9, 2021
Letter from New Orleans: Climate risk is business risk, and opportunity
Consider these statements: “Climate Risk Is Investment Risk.” “The climate crisis poses enormous financial risk to investment managers, asset owners, and businesses. These …
Stewardship | September 8, 2021
Companies scramble to get on the right side of Engine No. 1 – and of history
ImpactAlpha, Sept. 8 – This year, companies are taking the call when Engine No. 1 reaches out. Chevron Corp., the world’s No. 8 …
Capitalism Reimagined | September 2, 2021
Chasing alpha is fine, but long-term returns for universal owners require beta stewardship
ImpactAlpha, Sept. 2 – We’re all universal owners now. Pension and sovereign wealth funds that “own the market” have long known they can’t diversify …
Capitalism Reimagined | September 1, 2021
RSVP for Call No. 30: Capitalism Reimagined
If you thought this spring’s ExxonMobil proxy fight was dramatic, just wait ’til next year. Join Engine No. 1’s Michael O’Leary, The Shareholder Commons’ Sara Murphy, Illinois …
Capitalism Reimagined | August 26, 2021
UK’s Nick Hurd on the “window of opportunity” for a green and inclusive transition
ImpactAlpha, Aug. 26 – Nick Hurd, the former MP and government minister, is heading the Impact Taskforce, created under the U.K.’s presidency of the …
Impact Voices | August 18, 2021
How CDFIs are rethinking lending risks to build BIPOC-led businesses and wealth
The portrayal of Black, Brown, Indigenous, and low-income populations as “too risky” for business investments is rooted in racism used to justify underinvestment …
The Reconstruction
Joe Scantlebury, CEO of Living Cities
The Reconstruction | October 21, 2021
Living Cities’ Joe Scantlebury sees cities as the template for an inclusive America
ImpactAlpha, Oct. 21 – U.S. President Joe Biden wants to ‘build back better.’ Joe Scantlebury is out to make sure the rebuild includes all …
Screenshot from Blue Bayou | Image courtesy of Entertainment One Ltd.
Creative Economy | October 19, 2021
New narratives for inclusion and investment at SOCAP21
ImpactAlpha, Oct. 19 – The arrival of Gen Z is upending culture and commerce. “They have very strong values around inclusivity,” said Marcy Ventures’ …
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The Reconstruction | October 19, 2021
Echoing Green and Goldman Sachs team to back Black women social innovators
ImpactAlpha, October 19 — New York-based Echoing Green will receive $1 million to create fellowships (applications are open) for Black women social entrepreneurs …
Vanessa Roanhorse
The Reconstruction | October 18, 2021
The Reconstruction: The Indigenous wisdom of lending based on character, not collateral (podcast)
ImpactAlpha October 18 – Current systems of credit are not working. Indigenous wisdom points to more promising approaches: deep local engagement and character-based …
The Reconstruction | October 15, 2021
Call No. 32: Black tech, green solutions for the planet and the people (video)
ImpactAlpha, Oct. 15 – Invest in climate action for the planet – and the people. “Climate change is a public health issue, it’s a …
Kenyan farmer | Photo credit: Jen Watson
Catalytic Capital | October 13, 2021
Researchers ready a dozen-plus deep dives into the complexities of catalytic capital
ImpactAlpha, Oct. 13 – Aceli Africa provides a first-loss cushion of up to 8% to lenders as a way to spur them to back …
New York, NY
The Reconstruction | October 13, 2021
Racial equity planks in a new Community Reinvestment Act can expand the American Dream
When most Americans think about civil rights, we think about the violence perpetrated upon Black Americans and the nonviolence movement that finally helped …
Photo credit: The Motley Fool.
Dealflow | October 13, 2021
Center Creek impact fund raises $30 million to invest in affordable single-family homes
ImpactAlpha, October 13 — Single-family properties represent more than half of all rental housing in the country. Nearly two-thirds of Black and Hispanic …
Sherrell Dorsey of The Plug | Photo credit: Mecca Gamble Photography
Podcasts | October 8, 2021
Impact Briefing: Covering Black tech ecosystems, with The Plug’s Sherrell Dorsey (podcast)
ImpactAlpha, Oct. 8 – On this week’s podcast, The Plug’s Sherrell Dorsey joins host Monique Aiken to talk Black tech ecosystems, the origins of …
Nwamaka Agbo, Kataly Foundation | Photo by Bethanie Hines
The Reconstruction | October 4, 2021
Restorative economics: Creating community benefits by shifting who owns and controls assets (podcast)
ImpactAlpha, Oct. 4 – Black, Indigenous and other communities of color are often told that economic development projects will bring jobs and services to …
Photo credit: Elemental Excelerator
The Reconstruction | September 30, 2021
Elemental Excelerator’s climate-tech unicorns develop locally, deploy solutions globally
ImpactAlpha, Sept. 30 – Dawn Lippert wanted to help flip Hawaii green and wean it from dependence on fossil fuels. But the cleantech solutions …
The Reconstruction | September 29, 2021
How climate-tech investments can create health and wealth in Black and Brown communities
ImpactAlpha, Sept. 29 – Investors able to spot scalable and community-based solutions will have an advantage as climate justice takes center stage in …
Catalytic Capital
Joe Scantlebury, CEO of Living Cities
The Reconstruction | October 21, 2021
Living Cities’ Joe Scantlebury sees cities as the template for an inclusive America
ImpactAlpha, Oct. 21 – U.S. President Joe Biden wants to ‘build back better.’ Joe Scantlebury is out to make sure the rebuild includes all …
Catalytic Capital | October 21, 2021
$100 billion is just a down payment on financing the climate transition in developing nations
ImpactAlpha, Oct. 21 – For want of a nail…the kingdom was lost, as the old proverb goes. For want of $100 billion, a …
Catalytic Capital | October 20, 2021
Deploying catalytic capital to bridge financing gaps for climate action
ImpactAlpha, Oct. 20 – Climate finance is on a roll. Climate finance is stuck. Both statements are true. Investors have poured record sums …
Catalytic Capital | October 20, 2021
MacArthur’s Debra Schwartz on catalytic capital, cost curves and contributing to solutions (podcast)
ImpactAlpha, Oct. 20 – The readers have spoken. When ImpactAlpha asked subscribers last year to rank the topics where they wanted to see more …
Kenyan farmer | Photo credit: Jen Watson
Catalytic Capital | October 13, 2021
Researchers ready a dozen-plus deep dives into the complexities of catalytic capital
ImpactAlpha, Oct. 13 – Aceli Africa provides a first-loss cushion of up to 8% to lenders as a way to spur them to back …
Catalytic Capital | October 13, 2021
Gathering evidence to put catalytic capital to its highest and best use
Disclosure: Catalytic Capital Consortium (C3) sponsors ImpactAlpha’s coverage of catalytic capital. Today, we are excited to announce 14 new awardees of the Catalytic …
Photo credit: TechFinancials.
Catalytic Capital | October 13, 2021
Lendable taps European alternative structure for $100 million emerging markets fund
ImpactAlpha, October 13 — Lendable provides debt financing for fintechs that help mostly low-income and largely women borrowers increase their incomes or reduce …
Accra, Ghana
Catalytic Capital | October 6, 2021
National advisory boards target local pension funds for small-business financing in emerging markets
ImpactAlpha, October 6 – Impact investing in emerging markets has long been dominated by international development finance institutions. The national advisory boards, or …
Photo: Raad Adayleh, AP
Refugee Lens Investing | October 6, 2021
Refugee bond attracts $14 million to support displaced people in Jordan and Lebanon
ImpactAlpha, Oct. 6 – The Syrian conflict has forced 6.6 million people to flee the country; 80% have settled in neighboring countries. The …
Lagos State, Nigeria | Photo by Shyne Bellz
Climate and Clean Tech | September 23, 2021
Africa’s eco start-ups seek to turn the tide on plastic pollution
When a problem is on your doorstep, it’s only natural to be compelled to find a solution. Over the past years, demand for …
Climate Finance | September 21, 2021
On climate action, private investors urge governments to jump in (the water is warming)
ImpactAlpha. Sept. 21 – Many government leaders are being coy about their climate ambitions. Private funders are stepping up theirs. “My message here …
Photo credit: The Conversation.
Catalytic Capital | September 14, 2021
Opportunity Finance Network’s Finance Justice Fund secures $23 million
ImpactAlpha, September 14 — Opportunity Finance Network, a Washington, D.C.-based network of community development financial institutions, or CDFIs, is looking to raise $1 …
Agents of Impact
Bold leaders. Taking action. Driving impact.