Domestic social impact investment is stuck. Each year a few deals trickle through, but despite the potential and promise, impact investments in the US are rare, complex, and entirely bespoke. To be sure, there are structural challenges to growing the market in the US – just look at Tracy Palandjian’s recent SSIR article on the state of the social impact bond sector – but I can’t help feeling that we’re suffering as much from a failure of imagination as infrastructure. The problem is, few social entrepreneurs can clearly describe their impact capital needs, while few potential investors understand how to place impact capital into deals. I mean, if neither side really knows how to go about its business, how can we expect them to do business with each other?
But I have an idea…. Continue reading