Despite growth in the supply of impact investment capital and the increased demand for it, much more investor capital needs to be committed to actual projects. Established financial services providers believe that all capital should either be invested to maximize profits, with little or no regard for social or environmental effects, or donated to charity to achieve social or environmental returns. Maximpact’s goal is to support the development of impact investing, an approach that harnesses the power of market finance to deliver benefit for the planet and its inhabitants.
The impact investment sector is still developing. The lack of market mechanisms, such as clearinghouses, rating agencies, and syndication facilities, remains an obstacle to growth. On the supply side, high sourcing costs and a shortage of reliable information, especially on social returns, leave many potential impact investors wary of entering the field. On the demand side, fragmentation of investment supply together with the inability to syndicate start-up and expansion finance opportunities, set off an inefficient capital sourcing process that stifles the launch and expansion of new projects.
The Maximpact impact investing network is designed to address some of these shortfalls. Its collaborative community improves transparency, efficiency and quality of impact deal flow. Its innovative approach boosts market liquidity and increases the number of quality impact deals available for investment. Its broad definition of impact breaks down traditional barriers, enabling philanthropists, impact investors, CSR and the eco and green technology sector to list deals and invite specific funding groups to view them. This enables each funder group to remain in their own sector yet participate in a world of sharing and collaboration in support of impact investing.