Four principles to help catalytic investors optimize allocations and scale impact

“Development finance institutions aim to make themselves obsolete,” writes Ward Nusselder, investment officer with FMO, the Dutch development bank, as part of C3’s Scaling Impact blog series published by Impact Alpha. “We want to play our part in the early development stage of a company, sector, or country, and leave commercial financiers to bring investees to the next level. If catalytic capital providers stick around too long, we can hamper the development of a sustainable ecosystem. As such, it is crucial to reduce catalytic funding as soon as feasible.”