Nesta is involved in impact investment because of its growing importance in financing social innovations so that they can grow and maximise their impact.
Our definition of impact investment is:
Impact investment is investment with the primary goal of achieving positive outcomes for individuals, communities or society as a whole, and with a secondary goal of achieving financial returns for investors.
Investment is needed to fund the creation of new innovations, to support their development and testing and to scale up those innovations that work. This is as true of innovationthat seek to achieve social impact as it is of those motivated by creating financial value.
There is also growing experimentation around the world with innovations in financial mechanisms as a means of supporting the improvement of social outcomes. The UK has been a pioneer of innovations in finance for impact, for example in the development of Social Impact Bonds as a structured finance product for social impact.
Nesta's work on impact investment includes:
Our aim, through this work, is to support the development of the impact investment market. In particular we want to see more investment focused on:
Download the entire Impact Investment blog series from Joe Ludlow and Jo Casebourne