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Insights from SOCAP 2024
Just a week before the 2024 U.S. presidential election, SOCAP Global convened thousands of impact practitioners—including impact investors, entrepreneurs, academics, and movement leaders—to tackle some of the most pressing questions facing the ecosystem. Centered on the theme of “Catalyzing Systems Change,” the conference urged attendees to explore how capital can drive meaningful, scalable transformation on a global scale.
Many challenges that occupy investors today, such as the climate crisis, gender inequality, and poverty, are inherently global in nature. Addressing these issues requires coordinated international action. By adopting a systems lens, we can deconstruct these complex problems into actionable points of impact, identifying opportunities across different regions and financial instruments. This approach encourages practitioners to aim for global, systemic goals while leveraging their unique tools and strengths.
So, how can investors and entrepreneurs effectively address urgent, large-scale issues like climate change? A systemic approach involves initiating change at multiple inflection points. For investors, solutions that blend top-down, bottom-up, and lateral strategies tend to be the most effective. These multifaceted solutions can harness a variety of tools, including investment capital, philanthropic funds, technological innovation, and policy advocacy.
“This is where systems change can really begin, built within each of your communities across the globe,” urged Jim Sorenson of the Sorenson Impact Group during SOCAP’s closing plenary.
Many investors have discovered that global solutions achieve greater impact when paired with regional implementation. In the United States, the landmark Greenhouse Gas Reduction Fund (GGRF) is set to inject billions of dollars into disadvantaged communities over the next few years. This top-down initiative combines blended financial strategies with community-driven execution. By infusing capital into an existing network of Community Financial Development Institutions (CDFIs) to operate in underinvested areas, the Environmental Protection Agency (EPA) also aims to mobilize private capital for developing accessible, affordable climate technologies. This strategy aligns investment in climate solutions with the needs of U.S. communities and the strengths of American entrepreneurs, demonstrating how blending financial tools can address complex issues from the ecosystem level down to the local level.
Alternatively, some investors adopt a lateral approach by funding technology solutions and entrepreneurs across various regions within a specific sector, such as solar energy or fintech. This strategy has led to increased investments in emerging markets as investors seek opportunities in regions developing similar technologies—a trend that continues to grow. According to the Global Impact Investing Network’s (GIIN) 2024 State of the Market report, 43% of investors plan to increase their allocations to emerging markets.
The most catalytic and sustainable change occurs when capital is deployed both vertically and laterally.
“If you look at our biggest problems in this world, they’re also our biggest markets,” shared Nasir Qadree of Zeal Capital Partners during the session “Investing in Ecosystem-Level Impact.”
While venture capital opportunities are expanding rapidly in regions like Africa, Asia, and South America, these investments alone are insufficient to meet both regional and global climate needs. The most catalytic and sustainable change occurs when capital is deployed both vertically and laterally. Investors must direct funds to diverse firms with local market knowledge; venture capital firms need to support and scale local entrepreneurial innovations; policy advocacy must ensure equitable impacts; and robust financial infrastructure is essential to facilitate the free flow of capital where it’s most needed. Additionally, blended finance models are crucial for fostering a diverse range of solutions. By partnering philanthropic dollars, private capital, and public funding, we can create more risk-tolerant capital pools that enable investors to employ innovative and catalytic strategies.
“We need to reinvent the impact investing ecosystem now if we want to see the kind of impact we can have by moving towards a more patient, risk-tolerant model of capital for long-term value,” stated Brigit Helms of the Miller Center for Social Entrepreneurship during the session “Impact Investing Needs Less Cake.”
Events like SOCAP play a vital role in uniting global practitioners and problem solvers, providing more than just a platform for sharing successes and challenges. They highlight the importance of strong partnerships, coordination, and trust in crafting solutions that match the scale of the problems we face. Emphasizing global goals also serves as a reminder that no single individual or organization should bear the burden alone. “We need to do something and do something fast if we’re going to preserve the planet for the generations that come after us. … We are not outside of the ecosystem. We are a part of the ecosystem,” concluded Katie Macc from the Sorenson Impact Institute.
As we move forward, the collaborative efforts and innovative strategies discussed at SOCAP Global underscore the potential for collective action to drive meaningful, systemic change worldwide.
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