Millennials think about impact, act on the move, and communicate as digital natives. By 2020, an estimated $100 billion dollars annually will flow from young donors into the nonprofit sector. Nonprofits who speak to them in their native language, communicate with technology, and offer them a wide range of ways to engage will benefit from this massive giving potential.
To illustrate what it really takes to fund innovation in practice, we have developed five case studies that aim to capture the realities of the innovation funding process. Each looks at the process of supporting innovation from a different angle
In some developing countries, when patients hemorrhage blood during childbirth, doctors use a ladle and cheesecloth to perform auto-transfusion — gathering and recycling blood for the same patient during a medical procedure. This DIY method is necessary because the machinery and supplies typically used for transfusions are so costly.
Impact bonds aren’t bonds in the traditional sense, i.e. debt securities that pay a fixed interest rate until maturity. Instead, they should be considered more as equity-like instruments that offer repayment to investors on the basis of results achieved. They also carry higher levels of both risk and potential return than traditional bonds do.
It will take years to develop new investment strategies and products that build on these changes. And obstacles remain, including lack of foundation and pension fund experience in evaluating and managing impact investments, and a dearth of investable opportunities.
A stated interest in impact measurement, combined with a pattern of weak measurement practice reflects a justifiable concern about both the costs and the benefits of rigorous impact assessment. The problem is that neither the tools of emerging market investment nor the measurement practices of traditional international development are appropriate to early-stage social enterprises.
LeapFrog plans to invest the capital in financial services and healthcare companies, in both Africa and emerging Asia. By focusing on these underserved markets, LeapFrog portfolio companies recorded a 60% average revenue growth last year, and now serve 51.8 million people.
Roughly 700m people are thought to live in extreme poverty, defined as getting by on less than $1.90 a day. Roughly 700m people are thought to live in extreme poverty, defined as getting by on less than $1.90 a day. Research showed that microfinance was not the cure-all that had been thought. But BRAC’s graduation programme proved highly effective.
We aim to address major issues such as deploying Wifi in a fast way to refugees; the best, most effective apps and sites that have been deployed so far (what has been effective, and what hasn’t worked); how tech can be used to integrate refugees into society as they transition to asylum seeker status, and eventually citizens of new countries; and the crucially import Legal aspects that surround the issues. A number of Techfugees-supported Hackathons have taken place in the last few weeks since the Techfugees movement was started, including in Oslo, Venice and Warsaw. Others are planned for Munich, Berlin and Sydney, among others in the works.
While this – once again – will not create billionaire entrepreneurs and not attract venture capital at $50 billion valuations it goes to show you can “disrupt” an industry (if that is your stated goal) without having to destroy livelihoods. A trend well worth considering for other industries as well.