Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Measure Better Investing in Racial Equity Beyond Trade-offs Impact en las Americas New Revivalists
Local and Inclusive Climate Finance Catalytic Capital Capital on the Frontier Best Practices Geographies
Slack Conference Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Locavesting Entrepreneurship Gender Smart Return on Inclusion Good Jobs Creative economy Opportunity Zones Investing in place Housing New Schooled Well Being People on the Move Faith and investing Inclusive Fintech
Clean Energy Farmer Finance Soil Wealth Conservation Finance Financing Fish
Innovative Finance
Personal Finance Impact Management
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States
Subscribe
Features
Series
Themes
Community
Data
Subscribe Log In
More

Could an impact investing merchant bank fill the growth-stage capital gap?



An impact investing merchant bank would arrange financing via share ownership instead of loans. The idea was floated at a recent workshop hosted by Echoing Green, the three-decade-old nonprofit fellowship program and accelerator.

Accelerating Capital to For-profit and Hybrid Enterprises l Echoing Green & Enclude

A study of 49 Echoing Green fellows running for-profit and hybrid startups* found impact ventures continue to need investment readiness support at later stages, to scale their models. Particular areas of need include funding introductions, transactional support, and valuation assessment.

The study also spotlighted the fragmentation of the investment side of the impact sector, Echoing Green’s Min Pease told ImpactAlpha.

“If [an investor] in Silicon Valley tells someone no, they’ll recommend five other potential investors. We don’t have that in impact investing,” Pease says. “A lot of money went into building the venture capital industry infrastructure. There has not been that kind of investment in impact infrastructure yet.”

Enclude led the study, with support from the MacArthur and Kresge Foundations. The full findings are available online.

*Footnote: Echoing Green notes it has seen a surge in for-profit and hybrid social venture applicants in recent years.

You might also like...