2025 has presented a new set of challenges (and opportunities) for investors, fund managers and organizations focused on impact. We asked some of C3’s newest partners to offer their insight on how impact investors should approach this moment, and why C3 is part of their strategy. This is the first in a series of their answers and comes from Small Foundation.
Why Join C3?
At Small Foundation, we invest in the enabling infrastructure for rural micro, small and medium enterprises (MSMEs) in sub-Saharan Africa—where traditional market-rate-seeking capital often fears to tread. That’s why we joined the Catalytic Capital Consortium (C3). Systems change requires capital that is flexible, risk-tolerant, and patient. C3 is building the field that makes such capital visible, viable, and scalable.
We see C3 as both a community and a driver of systemic change. It convenes peer funders, generates actionable insights, and makes the case for catalytic capital as indispensable to inclusive economic systems. As co-chair of the Africa Thematic Group, we aim to elevate African voices, build local investment capacity, and increase the volume of catalytic capital flowing to African intermediaries and entrepreneurs.
What is the role of catalytic capital in this moment of increasing global uncertainty?
In the face of shifting financial paradigms, economic volatility, and climate disruption, catalytic capital is more vital than ever. Catalytic capital is not just a financial instrument; it’s a mindset, one that embraces complexity, stays longer, and backs local leaders. The moment calls for a shift—from business-as-usual to bold, collaborative action.
We call on more investors to move beyond rhetoric and step into more intentional, risk-tolerant roles. This means pooling resources, supporting early-stage intermediaries, and co-creating solutions with communities. By embracing catalytic capital, investors can bridge capital gaps, fuel local resilience, and scale what works—even when the path isn’t linear.
Business as usual won’t deliver transformation. But coordinated catalytic action just might.