NEW FINANCING MODELS

4.10

Introduction to impact investing

What methods allow us to go beyond the traditional funding methods and sources? To answer this question, let us have a look at the core ideas of impact investing.

Impact investing is best understood as a continuum between 100% loss, ie receiving donations only, and full market return, ie doing business. On this continuum we find a lot of different possible methods. By applying other instruments than grants such as loans, equity, or guarantees for the same good cause, one can reuse one dollar several times, before it becomes a final grant.


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