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Spectrum of Capital

Spectrum of Capital

The Spectrum of Impact Capital is a framework created by Bridges Ventures to help investors understand the different types of impact investing strategies. The spectrum ranges from philanthropy on the one end to traditional investment on the other.

  • Philanthropy is the most traditional form of impact investing. It involves donating money to organizations that are working to solve social or environmental problems. Philanthropy is typically done with the goal of making a positive impact, without the expectation of financial returns.
  • Traditional investment is the least traditional form of impact investing. It involves investing in companies that are already profitable and have a positive impact on the environment or society. Traditional impact investors typically focus on financial returns, but they also want to make sure that their investments are making a positive impact.

The spectrum of impact capital also includes a number of other strategies, such as:

  • Impact investing is a type of investment that seeks to achieve both financial returns and measurable social or environmental impact. Impact investors typically invest in companies or organizations that are working to solve specific social or environmental problems.
  • Impact lending is a type of lending that is designed to have a positive social or environmental impact. Impact lenders typically lend money to businesses or organizations that are working to solve social or environmental problems.
  • Impact investing with blended finance is a type of impact investing that uses a combination of traditional investment and philanthropy to achieve its goals. Blended finance can be used to finance projects that are too risky or too expensive for traditional impact investors.

The Spectrum of Impact Capital is a useful tool for investors who are interested in making a positive impact with their investments. It helps investors to understand the different types of impact investing strategies and to choose the strategy that is right for them.

Here is a diagram of the Spectrum of Impact Capital:

The Spectrum of Impact Capital is a dynamic framework, and it is constantly evolving as new impact investing strategies emerge. However, it provides a useful starting point for investors who are interested in learning more about impact investing.

About Impact Capital Partners

At Impact Capital Partners, our mission is to connect institutional capital with the growing impact investment market to address the world’s most pressing challenges. By utilizing impact investments, institutional investors are able to generate positive, measurable social and environmental impact alongside a financial return. We are constantly finding new impact investment opportunities in both emerging and developed markets, targeting market-rate returns. Schedule a call with us HERE if you’re interested in learning more about our impact investing strategies.

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