Latest news with #impactinvesting
Entrepreneur
7 hours ago
- Business
- Entrepreneur
Private Equity Eyes Inclusive Growth Amid Digital and Market Transformations
For private equity (PE) and impact firms like Leapfrog, these trends are shaping their investment strategy for the foreseeable future. Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Emerging markets are undergoing a rapid transformation in access to essential services, driven by both rising demand and expanding digital infrastructure. According to the World Bank's Global Findex 2025 survey, financial inclusion has advanced at an unprecedented pace, with 40 per cent of adults in developing economies now saving through financial accounts, a 16-percentage-point increase since 2021. Mobile-money adoption has been a key driver, with 10 per cent of adults using such accounts to save, underscoring the role of technology in bridging service gaps for low- and middle-income populations. For private equity (PE) and impact firms like Leapfrog, these trends are shaping their investment strategy for the foreseeable future. Pranav Kumar, Partner at Leapfrog Investments, said that the demand from low and middle-income customers for essential services like financial services and healthcare (such as mortgage, small business loans, or diagnostics) is large and still underserved. On the supply side, the key trends like digitization (and now AI), smartphones, and public digital infrastructure have allowed smart-driven entrepreneurs to build solutions to serve this demand at low cost. "Patient and operationally active equity capital such as ours will continue to play an important role in enabling these entrepreneurs and management teams. The increasing depth and sophistication of capital and IPO markets, enabling exits, will continue to encourage equity capital in the private space," said Kumar. Bain & Company reports that in 2024, India was the largest exit market in the Asia-Pacific region, with IPO exit values up 78 per cent year-on-year. S&P Global data further indicates a 156 per cent jump in private equity exits in India over the same period, even as new deal volumes eased. Such trends suggest that patient, growth-oriented capital can now be recycled more efficiently, encouraging deeper investment in high-impact sectors. Leapfrog has announced two successful exits in recent months, the first being Fincare Bank exited through block deals. The firm also sold its majority stake in Goodlife Pharmacy, East Africa's largest pharmacy platform, to CFAO. "Our strategy has been to partner with quality management teams, fund and execute growth through economic cycles, and aggressively leverage technology to drive economics," said Kumar. Kumar added that the firm remains upbeat about the sustained long-term growth of Indian businesses supported by a resilient Indian economy and a deep capital market. "However, it is important to identify resilient business models and high-quality partners. We will continue to back businesses that deliver commercial returns alongside achieving tangible social impact to the underserved population and small businesses."
Forbes
18 hours ago
- Business
- Forbes
The New Blueprint For Impact Investing DAOs
In 2024, the impact investing market was valued at USD 87 billion; by 2030, it's projected to triple to over USD 253 billion (Grand View Research, 2025). Yet despite this momentum, the way impact capital moves today often mirrors the inefficiencies of traditional finance: high minimums, long decision cycles, opaque governance, and limited community involvement. Too often, the people most affected by these investments have the least say in how they're designed, deployed, or measured. A new wave of decentralized impact‑investment platforms is changing that. Using blockchain and tokenized governance, they enable communities, investors, and stakeholders to co-create and co-govern in real-time, with complete transparency. Decentralized Autonomous Organizations (DAOs) distribute governance tokens not just to investors but to community members, local NGOs, and even small business owners within the project area. Every proposal, regardless of whether it involves allocating funds for equipment, adjusting wage structures, or expanding services, is voted on and executed via smart contracts. Governance Before Capital & Decision‑Making Before Deployment of Decentralized Finance Ever since 2018, the World Economic Forum has acknowledged the potential of blockchain as 'a game-changing technology that can contribute to scaling impact investment by providing trust, transparency, and low transaction costs.' Few segments of finance are expanding this fast, and even fewer are so tightly linked to tackling the world's most urgent social and environmental challenges. One company taking that idea further than most is Kula, a decentralized impact-investment platform that has spent the past four years building a governance-first model for how capital should flow. Co-founded by Micah Yeackley, Chris Turner, and Samuel Chen, Kula's premise is simple but radical: before the money moves, the governance must be in place. Instead of fund managers dictating where investments go, Kula uses RegionalDAOs, decentralized autonomous organisations embedded in the very communities where projects are run. Residents, local operators, and investors all hold governance tokens that give them a direct vote on where capital is allocated. Smart contracts execute these decisions automatically, creating a permanent on-chain record. Every action can be audited in real time by all stakeholders, from local farmers to institutional investors. 'We start with governance because without it, the technology doesn't matter,' says Co-Founder and Chief Strategy Officer Samuel Chen. 'The token is not the product, it's the key to a treasury that communities and investors manage together, backed by legal structures that can stand up to institutional scrutiny.' Kula's Blueprint for Impact Investing of Unlocking Growth Where It Truly Matters Kula approaches impact investing as a critical avenue to build the future of worldwide communities, starting with the resources that sustain them. In Nepal's remote Tsum Valley, its hydropower project is bringing consistent, renewable electricity to a place where energy once felt distant and uncertain. The turbines power homes and schools, but they also power ambition, enabling local businesses, attracting new skills, and anchoring infrastructure that can serve generations. Exhausted soil locks farmers in cycles of low yields and low income, with no surplus to invest. In Zambia's Ukwimi district, the Agriculture RegionalDAO is reversing that trend. A 3,000-hectare land gift is being restored through regenerative farming, and blockchain governance ensures farmers guide its future. Better harvests feed the communities, with profits reinvested into the systems that keep productivity rising. But when water comes in destructive floods or fails entirely in drought, even the strongest farms can falter. In Lusangazi, Kula's WaterDAO has introduced balance by utilizing smart systems to store rain during the wet season and release it during the dry season. Crops are safeguarded, incomes remain steady, and the region's agricultural and energy gains are protected for the long term. Three places, three different constraints. Yet in each, Kula has stepped in at the pressure point and released the flow of progress. 'This is a landmark moment for us,' Yeackley says. 'Four years ago, we set out to build a platform that would treat governance as a first principle. The model brings capital and community together in a verifiable, auditable, and transparent way.' Regulation: The Infrastructure for Decentralized Finance By design, decentralized systems remove traditional intermediaries. This increases efficiency but strips away the layers of oversight that normally protect investors, verify claims, and ensure funds are deployed responsibly. Regulation fills this gap by setting governance, reporting, and transparency standards. Without it, even well‑intentioned projects risk being perceived as risky experiments, a perception that can shut the door to institutional capital and limit impact at scale. Leading jurisdictions are approaching the challenge in different ways, offering distinct pathways for impact-driven DeFi. The UK has created a structured yet innovation‑oriented framework. The Financial Services and Markets Act (2023) defines digital securities, unbacked crypto assets, and stablecoins, embedding strict AML/KYC requirements into financial promotion rules. Its permanent Digital Securities Sandbox lets platforms trial tokenized impact models with direct regulatory oversight. The EU's Markets in Crypto‑Assets (MiCA) regulation harmonizes standards across member states, mandating AML, KYC, governance, and reserve rules to support cross‑border scaling. Fully decentralized models are currently excluded, but reviews by ESMA and the European Commission signal that DeFi oversight is imminent. At the other end of the spectrum, the US remains fragmented: federal agencies enforce securities, commodities, and AML laws, while states like Wyoming lead with pro-crypto steps, such as DAO recognition and blockchain-specific banking. This opens up state-level opportunities, but the lack of unified rules can deter large-scale institutional investment. Kula's governance‑first approach is underpinned by institutional‑grade compliance. In 2025, it became the first to obtain a VASP license under Mauritius's VAITOS Act, authorizing it to issue regulated governance tokens linked to real‑world projects. Following the Governance Layer of Impact Finance Kula has built its platform on a principle that challenges the norms of traditional finance: governance takes precedence over capital through RegionalDAOs that embed decision-making authority directly into the communities where projects are located. Farmers in Zambia, hydropower operators in Nepal, and water managers in Lusangazi all hold governance tokens, vote on proposals, and see every decision executed on-chain. Every outcome is recorded on‑chain, executed by smart contracts, and visible to all stakeholders in real time. However, Kula is not alone. This approach sits within a growing constellation of impact-driven DAOs experimenting with how capital, verification, and community oversight can work together. GainForest, for instance, is a project focused on environmental incentives. It utilizes AI, drones, and satellite imagery to verify reforestation and then issues smart contract payments directly to land stewards when growth is confirmed. Donors can watch their impact unfold through dynamic 'NFTrees.' Another notable DAO, IXO Protocol operates as an 'Internet of Impact,' tokenizing verified social and environmental outcomes into digital assets that can be financed and tracked globally. As regulations mature and institutional capital follows, tokens can evolve from speculative assets into instruments of accountability and shared ownership. If the future of impact finance is to be both inclusive and effective, Kula's blueprint outlines the path to achieve this arduous mission.
National Post
31-07-2025
- Business
- National Post
Green Alpha Investments Appoints Sustainable Finance Pioneer Erika Karp as President and Partner
Article content BOULDER, Colo. — Green Alpha Investments, a pioneering asset management firm investing exclusively in solutions to global systemic risks, today announced the appointment of Erika Karp as President and Partner, effective July 2025. Karp brings more than 25 years of experience in finance and capital markets, with deep expertise in sustainable and impact investing, investment banking, and scaling differentiated asset management platforms. Article content Article content 'Green Alpha's Next Economy investment philosophy represents the future of asset management—one where the most innovative, economically competitive solutions to systemic risks drive both impact and returns,' said Erika Karp, president and partner. As President, Karp will lead strategic partnerships and business development while working closely with the investment team to expand Green Alpha's reach and impact. She will play a key role in advancing the firm's mission of democratizing access to institutional-quality Next Economy portfolios that target companies providing essential solutions to the climate crisis, resource degradation, human disease burdens, and other systemic risks. Article content 'Erika's appointment comes at a pivotal moment when markets are finally recognizing that innovation-driven solutions to systemic risks don't only benefit from the secular tailwinds resulting from fixing big problems—they're the primary drivers of long-term economic growth and competitive returns,' said Garvin Jabusch, Chief Investment Officer and Co-Founder of Green Alpha. 'Her proven ability to scale sustainable investment platforms, combined with her deep understanding that fundamental risk analysis is essential to investment decision-making, makes her the ideal leader to help Green Alpha capitalize on this historic transition. The companies solving humanity's greatest challenges are simultaneously our best investment opportunities, and Erika uniquely understands this alchemy.' Article content Karp's distinguished career includes founding Cornerstone Capital Group in 2013, which she scaled from zero to $1.3 billion in assets under management before leading its merger with Pathstone in 2021. At Pathstone, she served as Executive Managing Director and Chief Impact Officer of the $100 billion multi-family office. Prior to Cornerstone, Karp held senior leadership positions at UBS Investment Bank, where she served as Managing Director and Head of Global Sector Research, and built out sustainability initiatives globally. Article content 'Green Alpha's Next Economy investment philosophy represents the future of asset management—one where the most innovative, economically competitive solutions to systemic risks drive both impact and returns,' said Karp. 'The firm's unwavering commitment to investing only in solutions, never in the causes of global risks, aligns perfectly with my belief that sustainable investing is not a niche strategy but the foundation of prudent, forward-looking portfolio construction. I'm thrilled to join the Green Alpha team at this inflection point where technological breakthroughs in areas like automation, robotics, AI, biotechnology, and the synergies between them are creating unprecedented investment opportunities.' Article content Karp's appointment reflects Green Alpha's continued growth and the increasing demand for investment strategies that recognize the non-discretionary nature of innovation in addressing global challenges. The firm, founded in 2007, has established itself as a leader in Next Economy investing with its proprietary approach that views companies creating solutions to systemic risks as the greatest change makers and productivity drivers of the 21st century. Article content A recognized thought leader in sustainable finance, Karp is a Founding Board Member of the Sustainability Accounting Standards Board (SASB) and has served on the World Economic Forum's Global Agenda Council on Financing & Capital. She has been named among '100 Women in Impact' by Real Leaders and received numerous accolades including Worth Magazine's 'Groundbreakers 2020' and Babson College's Lewis Institute Centennial Social Innovator Award. Karp holds an MBA in Finance from Columbia University and a BS in Economics from the Wharton School. Article content Green Alpha currently manages multiple investment strategies including the Next Economy Index, Social Index, Sierra Club Green Alpha Portfolio, and the AXS Green Alpha ETF (ticker: NXTE), all focused on companies providing innovative solutions to system-level risks while delivering competitive returns. Article content Green Alpha Investments is an asset management firm founded on the belief that investing in companies creating solutions to our greatest systemic risks is the best opportunity to preserve and grow capital. The firm's Next Economy investment philosophy focuses exclusively on innovative, economically competitive solutions to risks including the climate crisis, resource degradation, inequality, and human disease burdens. Green Alpha manages institutional-quality portfolios that are 100% fossil fuel free and designed to capture the dual tailwinds of the sustainability transition and competitive business fundamentals. For more information, visit Article content Article content Article content Article content Article content Contacts Article content Media Contact: Article content Article content Garvin Jabusch Article content Article content
Yahoo
22-07-2025
- Business
- Yahoo
Broadstreet strengthens servicing for high-impact loans with FUNDINGO
CHICAGO, July 22, 2025 /PRNewswire/ -- Broadstreet Impact Services, a leading provider of fund administration and operational support services to the impact investment industry, has selected FUNDINGO as its new loan servicing software. Broadstreet's fund administration team currently administers more than 160 investment entities totaling over $2 billion in assets. FUNDINGO is part of Broadstreet's infrastructure roadmap to support the evolving needs of its fund administration clients—who manage a range of fund types, investment strategies, and reporting requirements. The cloud-based system supports a wide variety of loan types and provides real-time access to loan data, enabling faster service and more transparent reporting for clients. This upgrade builds on recent enhancements to Broadstreet's operational platform, including completion of its first SOC 1 audit in 2024 and the launch of the Entrilia platform for fund accounting and investor reporting. Together, these investments have enabled Broadstreet's fund administration team to scale while maintaining institutional-quality compliance, reporting, and service. Over the past 18 months, Broadstreet has added more than 60 new fund administration entities. "Impact investing isn't a cookie-cutter business—at least not in the way Broadstreet and our clients approach it," said Chris Rakers, Managing Director for Fund Administration. "More than off-the-shelf products and services, we're supporting tailored solutions that help move the needle on issues like economic opportunity, affordable housing, and health. FUNDINGO helps us do that." "For CDFIs and impact-driven organizations, operational inefficiencies aren't just administrative hurdles, they directly undermine mission effectiveness and financial sustainability," said Chandler Schmitt with FUNDINGO. "At FUNDINGO, our mission is to provide a fit for purpose tool to transform these complexities into strategic advantages. By eliminating data silos, automating critical workflows, and providing unparalleled transparency into loan portfolios, we enable our clients to significantly amplify their impact, confidently scale their operations, and achieve measurable and repeatable success." To learn more about Broadstreet's fund administration business, visit: About Broadstreet Impact Services Broadstreet is an impact financial services company offering fund administration, advisory, and management services. We work with values-aligned investors and fund managers to fuel social, environmental, and economic impact across the country. Our platform supports 41 multi-asset funds, 64 single-asset entities, and $2.3 billion in capital under administration and management—advancing equity and opportunity alongside financial performance. Over more than 20 years, we have developed a client base that values our customizable services platform, fund development experience, impact focus, collaborative partnership approach, and deep sector engagement. For more, visit About FUNDINGO Mission-driven lending involves navigating intricate loan structures, rigorous compliance standards, and demanding reporting requirements. Without the right tools, these nuances create operational challenges that can divert focus and hinder institutions from achieving their impact goals. FUNDINGO stands apart as a fit-for-purpose Salesforce loan management platform specifically designed to address these complexities. Our powerful yet intuitive platform simplifies loan origination, underwriting, servicing, and impact reporting, transforming operational burdens into streamlined processes. Impact Funds, Community Development Financial Institutions (CDFIs), and Nonprofits rely on FUNDINGO's specialized capabilities to enhance transparency, confidently scale their operations, and more effectively achieve their mission objectives. Discover how FUNDINGO can empower your organization at Media Contact:Ariel Hargraveahargrave@ View original content to download multimedia: SOURCE Broadstreet Impact Services
Forbes
08-07-2025
- Business
- Forbes
Democratizing Venture Capital And Building A Better World
Mike Collins, Founder & CEO, Alumni Ventures (AV) Democratizing Venture Capital And Building A Better World Venture-backed companies have created trillions in market value over the past few decades but less than 1% of U.S. households have access to venture capital investments, according to Forbes. This exclusivity has contributed to wealth inequality and limited the capital available to innovative startups. Today, however, venture capital is being democratized in ways that are opening up more private investment opportunities and making the world a better place at the same time. In terms of pure financial performance, data from Cambridge Associates shows that U.S. venture capital has delivered a 19.3% pooled return over the past 25 years compared to 9.1% for the S&P 500. It's also a market that is expected to grow over 20% in 2025 according to Wise. The biggest areas of growth? AI, healthcare innovation, green technology and the democratization of the industry. Increasingly, more people will have the opportunity to invest in startups they believe in and help to bring the truly great ideas into the mainstream. And, with new investors on board, the venture capital sector will benefit from more diverse sources of capital and new perspectives. Including those of next generation investors who are increasingly 'impact curious' and are looking for opportunities to leverage their capital for meaningful change, according to research by the Center for Sustainable Finance & Private Wealth. Alumni Ventures (AV) has become one of the most active venture capital firms in the United States and is leading the path towards democratizing access to private investing. Since 2014 the firm has raised over $1.5 billion, made investments in more than 1,600 companies, and built a network community of more than 850,000 members. The firm recently launched AV Syndicate, a new investment platform allowing accredited investors to participate in individual venture deals with a minimum investment of only $10,000. But what sets AV apart isn't just the scale of its network or the size of its portfolio. It's the firm's commitment to democratizing venture capital in a way that channels investment dollars toward startups that are building a better future. AV was founded in 2014 by serial entrepreneur and Dartmouth alumnus Mike Collins on the idea that venture capital doesn't have to be exclusive. By leveraging the power of alumni networks and new technology, AV is making high-quality venture capital opportunities accessible to individual investors at scale. 'We believe that democratizing access to alternative investments is not just good business—it's essential for a more equitable financial system and a more innovative economy,' said Collins. 'By opening venture capital to individual accredited investors, we're helping to bridge this gap and create more opportunities for wealth creation.' Recently I had the opportunity to speak with Collins about why democratizing access to venture capital will be good for the investment community and for the world. Paul Klein: You've built a very different kind of venture capital firm. How did people react when you started? Mike Collins: When I started Alumni Ventures, people asked 'Why the hell would you bother with a $50,000 check from a heart surgeon in Des Moines?' But that heart surgeon in Des Moines, along with 11,000 other people, is part of a really powerful network that's valuable to entrepreneurs, allows us to get into better investments that gives better returns, and makes it appealing for more people to join the network. Paul Klein: Why hasn't the same investment ecosystem that has built America's strength in technology, and made the U.S. economy successful, been accessible to ordinary investors? Mike Collins: With the goal of protecting people from themselves, we've made the world of investing exclusively the purview of endowments, pension funds, and super rich people. Today, however, companies are staying private longer because they can raise as much without being public and dealing with short term thinking, day traders and algorithms. This is creating more opportunities for private investors. For example, OpenAI just raised $40 billion privately. What we're doing is creating a global entrepreneurial ecosystem where venture capital is democratized. Paul Klein: What makes investing in venture capital fundamentally different from investing in the public markets? Mike Collins: If you buy S&P's ETF, it's just a number that shows up in your Schwab statement or your 401(k). When you invest $10,000 into Oura, and the company does really well, there's the pride of being really involved in helping something great. That's very different from owning Apple or Microsoft. Paul Klein: What do you see as the key ingredients that have made U.S. entrepreneurs so successful? Mike Collins: I would say the strategic strength of the United States, the reason we are in the position we are as a society, is because we have dominated technology, had an ecosystem that supported innovation and entrepreneurship, and sold our products globally. More than that, as we moved from a manufacturing economy to an information economy, many companies, including Google, and NVIDIA, were founded by first generation Americans. One of the reasons that so many great companies are founded by first generation Americans is because it's a tough job and you've got to be gritty. You don't have a lot of trust fund kids growing up in Greenwich starting companies - it's too hard. Paul Klein: Accessing capital is the first test for every entrepreneur. How does AV help people from underrepresented backgrounds who have an even tougher time starting companies? Mike Collins: Building a company is hard but great entrepreneurs are able to find ways to access capital. Usually that starts out with a small group of friends and family, or people from your industry that get you going. Then you've got to prove yourself. At some point, the really good companies want a really strong venture capital firm as a lead investor. We also have a dedicated and fully staffed Women's Fund, have invested in an Anti-Bias Fund, and have one of the most tenured and prodigious Venture Fellow Programs in the world, which is specifically designed to help under-represented populations get into VC. Paul Klein: AI has been flagged as one of the three biggest areas for growth in venture capital investing. What's your take on the risks and opportunities in this space? Mike Collins: AI has been around a couple years now and I don't see it taking over the world. I don't see massive unemployment. Our healthcare system sucks, our education system is 100 years old, and it's a good thing that change is in order. There will be problems and unintended consequences, but the answer isn't to go back to 1950. Today, an open-minded, AI-native young person who is comfortable with these tools can accomplish so much more, so much quicker, and help older people be more productive. Paul Klein: Some investors argue that venture capital is risky, especially for individuals. How does your model address that? Mike Collins: I think venture capital as an asset class is perceived as risky because most people don't really have access to the best deals. We reduce risk by creating a big network of pooled capital and offering people large portfolios where they can own a hundred ventures led by top VCs. Paul Klein: What's your view of the role that next generation investors will play in the growth of venture capital investing? Mike Collins: The next generation wants to feel that they're investing in things that they believe in and care about—not just an asset class and a number that grows. There's also the psychology of feeling like you're helping to create the future of something important to the world by investing in areas you can believe in like small nuclear reactors, energy or AI. Next Gen investors also want to be part of a community of people who want to make the world a better place. We hold events where alumni of schools look at their portfolios together and hear from entrepreneurs about the timeframe for how their companies will be impacting our lives. Paul Klein: Finally, what investments are you most proud of? Mike Collins: Doing well and doing good are not mutually exclusive. For example, eleven years ago there was a company called Groups that created a national network of drug addiction clinics. It was a good investment and that also solved a problem. Some of our other portfolio companies in energy are creating new technology that allows us to do safer, more local distributed energy production, where we don't have to dig into the ground and burn carbon. I'm very proud of the work they're doing because I want to leave the world a better place for my kids. Collins and his team at AV are contributing to a fundamental reinvention of the investment industry. One where accessible venture capital may become the first choice for people who want access to private markets and to be part of a community of investors who want healthy returns and a healthy planet. "We're here to democratize venture capital, empower individual investors, and help entrepreneurs make the world a better place,' said Collins. 'That's how we'll reinvent this industry—and why I believe the best is yet to come."
