The NYU School of Law organized a Series on Impact Investing during the Spring Semester 2012. This Series offered "a forum for students, scholars and practitioners interested in the field of impact investing to exchange perspectives, develop ideas, and dialogue with thought leaders and experts in the field."
Finance Models
The Nonprofit Finance Fund, which has been doing the country an incredible service by conducting rigorous research and sharing information on the emerging Pay For Success (PFS) models in the United States, released its latest report yesterday. NFF describes each of these financing models as “accelerating the transition of the United States social sector from on output-driven funding model to an outcomes-driven funding model” and acknowledges that, as with any new model for anything, there are competing risk trade-offs for the various stakeholders.
When you’re looking for change, ask Obama or his American crowd.
They are about to change the game for emerging American businesses struggling to access capital and average investors looking to place capital in local, impact ventures.
After months of debate, the US government passed the bi-partisan Jumpstart Our Business Startups Act [PDF] (JOBS Act or HR 3606), new legislation designed to modify existing securities regulations, “…to make it easier for smaller businesses and startups to raise money from the public…”
Capitalism - or reforming it, at least - has been a hot topic lately. In this short 2 minute video, Mitchell Kapor, founder of the Mitchell Kapor Foundation, speaks at the 2011 Social Innovation Summit on how impact investing may save capitalism from itself.
Social Impact Bonds (SIBs) have been developed as an alternative source for raising capital for social projects - linking returns with social indicators. Unfortunately, by nature SIBs are high-risk, high-return and low-liquidity investments that are susceptible to moral hazard. An investor may be hell-bent on tweaking the social indicators in his favor just to get the desired return. The costs that are incurred in drafting legal documents outlining precise social impact metrics might outweigh the actual benefits accrued. In other words, while the concept of SIBs is fabulous, the execution leaves much to be desired.



























