Each week brings with it a new batch of headlines uncovering the ugly underbelly of another Silicon Valley pet gone wild. Scandals have hurled Uber, Kleiner, SoFi, 500 Startups, Google, Zenefits and others into unexpected PR nightmares. With the bad news coming fast and furious, it has become apparent that startups and venture capitalists have […]
To Fix the Gender Gap, Fix the Digital Divide
It is no secret that women have unequal access to economic opportunities. Here’s what’s new: As digital technologies dramatically reshape our economies, they can either worsen the problem, or help fix it. Think about it: Most job growth will come from STEM fields, yet women make up only 12 percent of engineering students. Much of […]
Why Do Social Enterprises Fail? New Research Reveals Three Reasons (And Some Surprises)
I will begin with a confession: I ran a social enterprise that failed and it took me more than a decade to realize with clarity the reasons for that failure. The first seven years after the failure I was in denial. Then, four friends and I founded the F*ckUp Nights movement and I realized how important it […]
Dear Diary: New Financial Diaries Research Explains Why Many Americans are So Angry
Would you rather have more money or a more stable financial life? A striking 92 percent of Americans in a recent survey chose stability – a sign of the deep undercurrent of financial insecurity running through the world’s richest country. A new book by Rachel Schneider of the Center for Financial Services Innovation, and Jonathan Morduch of […]
In Impact Investing’s Rush to the Mainstream, Who Are We Leaving Behind?
After a long march toward mainstream acceptance, many in impact investing are claiming victory. The industry is garnering attention at major publications like The Economist, and recently celebrated the emergence of a star-studded $2 billion fund. Meanwhile, studies have proliferated supporting the idea that you can earn market rate returns while making a meaningful difference in the […]
Why Fossil Fuel Companies Must Evolve or Die: An Interview with Carbon Tracker Founder Mark Campanale
Carbon Tracker is a nonprofit financial think tank that aims to align global capital markets with the climate goals set out in the Paris agreement, limiting global warming by transitioning the world away from fossil fuels. The initiative’s work is based on a stark reality: To keep global warming under 2 degrees Celsius and (hopefully) avoid the harshest […]
How Water.org ‘Took a Leap of Faith’ into Social Impact Investing
Editor’s note: Throughout 2017, NextBillion is organizing content around a monthly theme, dedicating special attention to a specific sector alongside our broader coverage. This post is part of our focus on the environment for the month of March. Consumer demand is a force that changes the world. With each purchase, we shape and sometimes even revolutionize the world we live […]
How Loan Guarantees Are Unlocking Private Capital for Clean Energy and Sustainable Agriculture
MCE Social Capital (MCE), a nonprofit impact investing firm, was founded in 2006 on the belief that loan guarantees – an ancient finance mechanism – can uniquely unlock private sector capital for the more than 2 billion people in the world who lack access to formal financial services, and for the hundreds of thousands of […]
Sorry, ‘Feel Good’ Investors: Deep Impact Requires Concessions
“We thought that the only way to achieve large-scale impact was to build large commercial enterprises that could generate enough cash to support both organizational growth and market-level impact. But as we began investing more heavily and more directly in early-stage companies that targeted less advantaged populations in emerging markets, we began to notice the […]
Is Microcredit a Vaccine or an Antibiotic?
I believe there’s a strong case for social investment in microcredit, but that the best case is built on new theories of change. Historically the standard microcredit theory of change has been that many (if not most) households are eager to start their own microenterprise but are stymied by a lack of access to credit, […]
Measuring Impact With Meaning: 50 Funds That Are Best For The World
December was a big month for impact investing, wrapping up an even bigger year. The momentum of our movement was on display at an oversubscribed GIIN Investor Forum in Amsterdam, where more than 800 investors and supporters of impact gathered for a two-day deep dive on the state of the industry. Nearly a decade in, […]
Impact Investing Buzz: GIIN and Toniic Mix with Growth Reports
The knock on impact investing – both within and outside of the industry – is the lack of long-term data and platforms to observe deals in a more transparent way. The Global Impact Investing Network (GIIN) and Toniic, arguably the industry’s most influential trade groups, both released studies designed to turn around some of those […]
Technology Meets Impact: New Online Marketplace Aims to Expand the Reach of Impact Investing
ImpactUs aims to simplify the process of impact investing through an online platform that allows investors to identify and invest in products that provide social impact. In this email Q&A with NextBillion Senior Editor James Militzer, Reginald Stanley, president and CEO of ImpactUs, explains how the platform works – and why it’s needed.. James […]
Social Investing’s Pension Problem: Just a Speedbump, or Something More Ominous?
It hasn’t attracted much attention in the social investing sphere – far less than the ongoing stream of reports attesting to the sector’s competitive returns and growing momentum. But a new brief from the influential Center for Retirement Research (CRR) at Boston College could be significant – and not just because of its surprisingly bleak […]
New Report: Small Merchants Offer Big Financial Inclusion Opportunities
There are more than 180 million micro and small merchants operating in developing and emerging markets globally. These merchants serve the world’s lowest income customers at a scale that is staggering. Every day, small merchants interact with more than 4.5 billion customers. While individually each merchant generates low revenues, they collectively influence the global economy […]
How Social Enterprises and Impact Investors Can Move the Needle to Achieve the SDGs
Last month the UNDP and Impact Hub organized the first Social Good Summit in Geneva, bringing together impact investors, international organizations and entrepreneurs to discuss how to scale up and finance impact-driven ventures to accelerate the implementation of the Sustainable Development Goals (SDGs). There was a great appetite at the summit to exchange ideas. Investors […]
‘Not just for profit – but for survival’: CEO Amit Bouri discusses the GIIN’s bold call for all investors to tackle the SDGs
The Global Impact Investing Network (GIIN) made headlines last month when it launched a rather audacious campaign to mobilize investors behind the Sustainable Development Goals (SDGs). In an impassioned op-ed, GIIN CEO Amit Bouri declared that “this investment is not just for profit – but for survival,” asked that “every investor not already involved make at least one SDG-focused impact investment” – and called on them […]
Facebook Live from SOCAP
The Social Capital Markets (SOCAP) conference is again upon us. And this year, we’re trying something new. NextBillion will broadcast a series of interviews through Facebook Live, starting this evening and continuing through the end of the conference on Friday. We have more than 10 (and counting) discussions lined up with a diverse group of […]
Closing the $2.5 Trillion Gap: How blended finance can help achieve the SDGs
One of the most quoted numbers in international development today is $3.9 trillion. That’s the annual funding the UN estimates will be needed to achieve the Sustainable Development Goals (SDGs). That’s a pretty tall order – especially considering that current annual levels of official development assistance funding are only $180 billion, with combined public and […]
Curing Silicon Valley’s Myopia: Ross Baird, on How to Change the Narrative Around Investment and Innovation
As Silicon Valley has grown in influence in both the business world and the broader culture, a growing chorus of critics have leveled a similar critique: Why are some of the world’s most brilliant innovators and deep-pocketed investors focusing so much of their time and resources on solving petty problems, while ignoring countless more pressing concerns? Ross Baird, executive director of Village Capital […]
Impact Investing Comes of Age: ImpactAlpha Rounds up Nine Stories Shaping the Marketplace
Editor’s note: NextBillion is collaborating with ImpactAlpha to highlight coverage of the top stories, leaders and trends in impact investing. In periodic NextBillion posts, their team will share the key stories and market activities that have crossed their desks in recent weeks. When global leaders launched the Millennium Development Goals in 2000 there was no well-developed way […]
Impact Investing Conference at the Vatican: New Perspectives From Both Sides
In late June, the Second Vatican Conference on Impact Investing (VIIC) brought together leaders from the Catholic Church and impact investment communities to discuss the role of impact investing for the poor. Because the Vatican conference occurred during the Extraordinary Year of Mercy established by Pope Francis, the VIIC chose the theme “Making the Year […]
Summer of Impact Investing: ImpactAlpha Flags 10 Recent Developments Shaping the Sector
Editor’s note: NextBillion is collaborating with ImpactAlpha to highlight coverage of the top stories, leaders and trends in impact investing. In periodic NextBillion posts, their team will share the key stories and market activities that have crossed their desks in recent weeks. Summer of Impact British voters have thrown a stick through the spokes […]
Opportunity International and MyBucks: A Dangerous Partnership Decision?
Editor’s note: The sale of microfinance institutions to fintech companies has broad potential repercussions for both clients and the sector’s overall development. Because opinions differ on whether this impact will be positive or negative, NextBillion is running multiple, comprehensive posts on the topic. The post below was independently authored by former MFTransparency CEO Chuck Waterfield, and provides a critical […]
Behind the Most Successful Microfinance IPO in India’s History: What does gender lens investing have to do with it?
I never thought that selling our shares in an IPO – the holy grail of private equity investing – would be such a grueling process. But it was all worth it when on April 28 in the pre-dawn hours of a New York morning I checked the news from India. The subscriptions had come in slowly at first, […]
NexThought Monday: Impact and the Science of Social Networks – More Bang For Your Buck
The basic principle behind network science is very simple: Things are connected, and the ways they are connected affect their individual and collective performance. Thus, the pattern of connections among neurons in the brain reveals the inner workings of cognition, just as gene combinations give us a clue about disease, or international trade between countries […]
The Most Powerful Weapon for Changing the World: How Microfinance Institutions Can Increase Access to Education
Education may be the “silver bullet” of development. It is, as Nelson Mandela described it, the “most powerful weapon which you can use to change the world.” Increase access to quality education for children and adults, and the knock-on effects can be profound – on health, women’s and girls’ opportunities, technology, and the growth of […]
Turning the Microfinance Model Upside Down: An Interview with Jeffrey Ashe
In the early days of microfinance – before its dramatic evolution from development sector hero to over-hyped villain and back to somewhat chastened respectability – it captured the imagination of many anti-poverty advocates, among them Jeffrey Ashe. After a stint in the Peace Corps, Ashe spent 20 years designing, evaluating and managing microfinance programs in over thirty countries – but then […]
Tunisia’s Entrepreneurial Ecosystem – Why Youth and Tech are Vital Elements
In February, The New York Times reported on the state of joblessness and resulting desperation among educated young people in rural Tunisia. This was the same demographic that protested in 2010, overthrowing the Ben Ali regime and sparking the Arab Spring. Five years on, an arid employment landscape (62.3 percent of college graduates are without […]
Blueprint for Ignition: How the Catalyst Fund Got Started
Impact investors collaborate to address funding gap for startups The emergence and rapid adoption of new technologies like the Internet, cloud computing and smartphones are transforming the way the poor and underserved access financial services. Startups are at the cutting edge of these innovations. They are catalyzing the next leap forward in financial inclusion by […]
Helping Smallholders’ Grow a Pharmacy on their Farms
Albrecht Dürer’s masterful woodcut, “Four Horsemen of the Apocalypse,” is drawn from the Book of Revelation, the last book of the Bible’s New Testament. In it, the horsemen ride on red, black, white and pale horses, symbolizing war, famine, conquest and death. The black horse symbolizes famine – its darkness depicting the brute force of hunger. But this […]
A Holistic Approach: Three keys to helping small businesses access the finance they need
According to the World Bank, small- and medium-sized enterprises (SMEs) provide more than 90 percent of all jobs in low-income countries, and such firms are an essential part of emerging economies. However, these firms are far less competitive than their counterparts in industrialized countries. Among the many obstacles to the growth faced by SMEs, the […]
A Shared Destination: Why we need open source impact metrics
Editor’s note: This is the third in a series of three articles offering new methods in generating, comprehending and The definition of social impact dramatically differs based on the role we are referencing, e.g. impact investor, funder, program agency or practitioner. Though there is a plethora of standards, tools and frameworks, most organizations do not […]
The Surprising Reason Why Savings Boosts Income: New Research Reveals an Unexpected Benefit of Financial Inclusion
Make it easier to save, and people will save more. This seems straightforward and holds true when offering savings accounts to customers in rich and poor countries alike. Make it easier to save, and people will save more and earn more. This sounds a little more surprising, especially if you posit that this increase in […]
Mapping the Path to Full Financial Inclusion
When attempting to solve a complex development challenge, we often jump from creating ambitious goals to making plans, without first identifying who we need to reach with our goals, where those people reside, and what challenge and opportunities they face. This approach has numerous drawbacks: We often get surprised by obstacles we did not foresee […]
‘The Face of the African Entrepreneur’
The Sankalp Africa Forum focuses on challenges facing entrepreneurs like Angwenyi Editor’s note: The third annual Sankalp Africa Summit takes place Feb. 24-26 in Nairobi and is centered on the theme “Spurring the Entrepreneurship Economy.” Sponsored by Intellecap, the conference advances conversations on entrepreneurship, innovation and inclusive development. This Q&A previews some of the summit’s planned discussions and themes. […]
Building Efficient Social Sector Initiatives Through New Generation Impact Measurement
The social sector is going through a massive change never seen before. Thanks to the advocacy of innovative foundations, impact investments are now becoming mainstream, along with collective impact programs and other initiatives like social impact bonds and Pay for Success programs. In the U.S. alone, impact (or socially responsible investing) has grown to $6.57 […]
NexThought Monday: Why Microfinance Should Embrace – Not Resist – A New Brand
We live in the Age of Brand Management. The holy grail of “brand managers” is always the simple and compelling message, told by words, images, stories and evidence. In their constant quest, truth is both resource and constraint on what they can say, show and imply. There is constant tension between the subtle complications of […]
A Solution to Urban Blight? Crowdfunding’s Potential to Transform Cities
Editor’s note: The following is part of an ongoing series of posts about U.S. financial innovation enterprises and initiatives. Since the market crash of 2008, financial recovery for some major American cities is still an uphill battle. Cities like Detroit and Atlantic City have faced an array of forces stifling positive growth, from crime […]
Filling the Funding Gap in ‘Pay for Success’
Experimentation and social change go hand in hand. At a time when government resources are constrained, we need to experiment with new approaches to finance and scale promising social programs. At Living Cities, we are exploring new ways to unlock private capital for social good, harnessing the collective power of 22 of the world’s largest […]
An Eventful Year in Impact Investing – An Interview with ImpactAssets’ Fran Seegull
2015 was a big year for impact investing – one that saw it take some crucial steps toward the mainstream. We spoke with ImpactAssets’ Chief Investment Officer and Managing Director Fran Seegull at the 2015 SOCAP conference about these changes and what they mean for the sector. Among the many milestones she pointed to were high-profile market entrants like BlackRock and […]