Catalytic capital: Indispensable growth factor for impact funds, strategies, and fund managers

When it comes to ‘scaling,’ catalytic capital is key

“Should an impact fund or enterprise still need catalytic financing if it has already achieved proof-of-concept and demonstrated early success? Should catalytic capital investors consider such opportunities given the competing demands for their capital?” In many instances, writes  Laurie Spengler, CEO at Courageous Capital Advisors (CCA), the answer is yes.

In an Impact Alpha blog, Spengler takes a look at the vital role that catalytic capital plays in scaling impact funds, strategies, and business models—reflecting on insights shared by seasoned impact investors during C3 Learning Labs, which were led by CCA.

“Our investor participants stressed the ‘multiplier effect’ of catalytic capital, which allows funds and organizations to further prove strategies that can be replicated and attract follow-on financing,” she writes as part of the Scaling Impact series. “And they advocated for a strong community of practice to both streamline complex transactions and accelerate the flow of capital to high-impact funds and organizations.”



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