Taking a Realistic Approach to Impact Investing: Observations from the World Economic Forum's Global Agenda Council on Social Innovation

Abstract

As a starting point for our journey, we asked ourselves two simple questions: Where can we add the most value to the field of social innovation? Where do we currently see the largest opportunities and the potential pitfalls? Thus we decided to add a few items to the discussion on impact investing. We believe the rapid growth of investment funds marks a significant milestone for the sector and will be an important source of growth capital for social ventures. However, we feel there are a number of issues that deserve more attention and debate, such as the ways in which various types of capital can and should work together, the return expectations of newer entrants, and inventive approaches to tackle the fledgling industry’s growing pains. The results may provide refreshingly honest reading.