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Search for catalytic capital data, analysis, case studies and market development tools that can help investors identify opportunities for impact around the world.

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KOIS teamed up with Haqdarshak to analyze the social protection landscape in India for internal migrants, artisans, aspirational youth, e-rickshaw drivers, and self-employed workers. It is part of KOIS’ work to build the Dignity in Labor platform, an initiative that aims to enable sustainable livelihoods, improve access to formal credit for informal workers and connect them with social security provisions.

The Impact Investing Institute has developed a guide that acts as a roadmap for achieving a fair and inclusive transition to net zero in emerging and frontier markets, with a focus on the use of catalytic capital. It offers guidance and case studies for catalytic capital providers, including development finance institutions, governments, philanthropic organizations, private investors, and corporations, to help mobilize private capital that addresses climate action, social justice and local development needs.

A new report from Investisseurs & Partenaires (I&P) showcases the effectiveness of catalytic capital in supporting African SMEs. It evaluates the current financing landscape, including capital gaps, offering an analysis of risks and opportunities for investors, as well as recommendations for expanding the use of catalytic capital to fuel growth among small and medium-sized businesses on the continent. A short video accompanies the detailed report, explaining the value of catalytic capital and key conclusions from I&P’s analysis.

This new issue brief from The Global Impact Investing Network (GIIN) provides a framework for private institutional investors who aim to address climate challenges through their capital. “By making use of targeted catalytic capital and other strategies, these investors can help make significant progress towards global decarbonization targets by accelerating the build-out of climate infrastructure in emerging markets,” the authors write.

A report from the Impact Finance Research Consortium (IFRC) sheds new light on the features and applications of catalytic capital. A collaboration of the Wharton ESG Initiative, the Harvard Business School Social Impact Collaboratory, and the Rustandy Center for Social Sector Innovation at Chicago Booth, IFRC analyzed when, how, and why impact investors deploy catalytic capital and reports on recommendations for building the field of catalytic capital in the future.

In a new white paper, EVPA, one of C3’s network partners, takes a close look at how impact investors can be more catalytic in their provision of capital, in pursuit of impact for people and planet. “Funding is not flowing to transformational solutions at the accelerated rate most impact capital providers had hoped for; what we’re doing isn’t working fast enough. How can we mobilise more capital to fund a fair and green society that works for all? Can the rate of our transformation match our aspirations?”

AVPN offers an overview of the work of Artha Impact, an advisory firm that facilitates deployments of patient capital, with a goal of investing in early-growth stage high-impact businesses in India that focus on underserved communities. Artha Impact supports the development and the de-risking of businesses that can scale and raise millions of dollars further down the line and eventually attract larger equity investors.

Mumbai-based 200 Million Artisans researched the impact of catalytic capital on India’s Creative Manufacturing and Handmade (CMH) sector. Surveying entrepreneurs, it concluded that “the right financing at the right time, right place, and right terms” can help the CMH sector catalyse 200 million livelihoods as well as large-scale gender inclusion, while also advancing positive climate action.

First Peoples Worldwide (FPW) studied the role that catalytic capital plays in “forwarding self-determination and non-extractive investing” for Indigneous Peoples in the United States. “Native Peoples have built economic power; Native businesses are flourishing; and there are ample opportunities to fund successful Native enterprises both on and off reservations,” according to the new report, Indigenizing Catalytic Capital.

In an insightful report, the Center for Financial Inclusion (CFI) focuses on the role of catalytic capital as a force multiplier for investments in the digital credit industry. The paper draws lessons from how digital credit markets have evolved, driven by initial catalytic capital investments that spurred further investments, and highlights guardrails needed at the market level to ensure that growth is responsible, impactful, and leads to inclusive market development.

New research from Periféria Policy and Research Center looks at the potential of catalytic capital investments in the housing sector of Central and South-Eastern Europe (CSEE), where housing has become increasingly unaffordable. The report focuses on housing markets in Bosnia and Herzegovina, Bulgaria, Czechia, Croatia, Hungary, Northern Macedonia, Serbia, and Slovenia. It also considers the need for investment in sustainable housing solutions to address the climate crisis. C3 funded the research through its Strengthening the Evidence Base workstream.

Catalytic capital plays a vital “sustaining” role for funds, initiatives, and enterprises that take on the world’s most difficult challenges. This is the third and final guidance note to emerge from the C3 Learning Lab series, detailing how, when, and why investors seek out these kinds of opportunities.

From Open Capital Advisors, a “Voices from the Field” report highlights the experience of small and growing businesses in sub-Saharan Africa, focusing particularly on agriculture and health care and the underlying challenges that have left a $96 billion funding gap in those sectors. C3 funded this research as part of our Strengthening the Evidence Base workstream.

From Ashesi University and Impact Investing Ghana, new research details how patient, long-term catalytic capital has been deployed in Ghana’s small and medium enterprises (SME) financing sector. C3 funded this research as part of our Strengthening the Evidence Base workstream.

New Growth Innovation Network (NGIN) elevates key insights about racial wealth gaps. Some key takeaways: racialized definitions of risk continue to hold back capital; 2020 financial commitments can mostly be viewed as market corrections rather than catalytic; and there is evidence of catalytic capital investments that can be scaled. C3 funded the research as part of our Strengthening the Evidence Base workstream.

EVPA highlights the work of Rethink Ireland, which invests in Irish social enterprises, and its support for Sensational Kids, a nonprofit that provides therapeutic support to children with special educational needs. Rethink Ireland provided funding and organizational development support that built the capacity of Sensational Kids and attracted financing for a new National Child Development Centre.

In it’s Year 2 Learning Report, Aceli Africa reflects on its engagement with lenders in support of 713 loans totaling $85 million to agri-SMEs across Kenya, Rwanda, Tanzania, and Uganda. C3 supported this work as part of our Strengthening the Evidence Base workstream.

The Merry Year Social Company (MYSC) is a South Korea-based impact investor focused on early-stage social venture companies that do not have access to mainstream investors. In a 2023 case study, AVPN offers an overview of the firm’s investments in sectors such as job creation, eldercare, STEM education, and energy innovation in both Asia and Africa.

Convergence, the blended finance network, takes a deep dive into the development of Refugee Impact Bonds by KOIS, a global impact investing firm (and C3 grantee). Proceeds are financing a four-year microenterprise training and grants program focused on businesses for refugees and host communities in Jordan and Lebanon.

Drawn from C3 Learning Labs on “scaling,” this guidance note considers how catalytic capital helps funds, managers, and strategies grow beyond their initial success to eventually become commercially investable.

Alfanar is a venture philanthropy organization working in Egypt, Lebanon and Jordan to advance the work of high-impact organizations. In a 2023 case study, EVPA looks at Alfanar’s support for FabricAid, a social enteprise focused on the apparel industry, which has been able to scale its operations thanks to catalytic capital and management support.

This joint effort from the Initiative for Blended Finance at the University of Zurich, the Bertha Centre at the University of Cape Town Graduate School of Business, and Roots of Impact analyzes catalytic capital and blended finance from the perspective of the entrepreneur. C3 funded the research as part of our Strengthening the Evidence Base workstream.

This is the first in a series of guidance notes emerging from C3 Learning Labs with seasoned catalytic capital investors. It identifies some of the challenges investors may face when deploying catalytic capital in a “seeding” role and details best practices for the field. The Learning Labs and guidance note is part of C3’s Advancing Practice workstream.

Still wondering about the how, when, and why of catalytic capital? You’re not alone. C3 addresses some of the key questions about the sector and why it is so critical to achieving social and environmental impact.

Banner Photo: Sustainable forestry, Rwanda/courtesy of Total Impact Capital.

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