In Their Own Words: The Lemelson Foundation

We asked some of our partners what is energizing their participation in C3 and how they view the role of catalytic capital in an increasingly uncertain world. The Lemelson Foundation points to the “urgent need for innovative financing mechanisms that leverage private capital for public benefit” and urges impact investors to look beyond “business as usual.”

Why join C3?
The Lemelson Foundation’s decision to join the Catalytic Capital Consortium (C3) stems from a deeply rooted belief in the transformative power of innovation and entrepreneurship for equitable change, coupled with a pragmatic understanding of systemic barriers within financial ecosystems. We invest in high-risk, high-impact businesses, crucial for addressing social and environmental challenges. These companies face significant capital gaps throughout a complex commercialization journey.

Our decade-plus of risk-tolerant and patient investing has taught us that specialized expertise and coordinated action are essential to mobilize private capital. We value C3’s role in accelerating field-wide learning and fostering the collective growth of catalytic capital. C3’s work directly aligns with the Foundation’s vision to harness invention and entrepreneurship for underserved populations, aiming to build robust global innovation ecosystems that address critical needs.

C3’s efforts to build the catalytic capital community and advance SDG-aligned investments are crucial in bridging these capital gaps and fostering the coordinated movement needed to drive systemic change.

What is the role of catalytic capital in this moment of increasing global uncertainty?
In this era of escalating global uncertainty and shrinking public funding, catalytic capital has become paramount for sustaining and scaling impactful solutions.

For The Lemelson Foundation, this underscores the urgent need for innovative financing mechanisms that leverage private investment for public benefit, particularly in accelerating market development by strengthening the financing markets for small and growing businesses—entities critical for building resilience. By strategically de-risking nascent markets and innovative approaches, catalytic capital can unlock private investment aligned with essential goals, filling the widening gap left by diminishing public resources amidst global instability.

This moment calls for impact investors to move decisively beyond business as usual, embracing investment categories with perceived higher risk but significant non-monetary value in addressing critical social and environmental issues. Impact investors must leverage their capital more strategically and collaboratively, leveraging regional or thematic networks, many of which have been supported by the Catalytic Capital Consortium, to create the financial systems capable of supporting truly transformative solutions.