Catalytic capital—investment capital that is patient, risk-tolerant, concessionary, and flexible—is an essential tool to support impact-driven enterprises and organizations that lack access to capital on suitable terms through the conventional marketplace. The aim of catalytic capital is to unlock impact and additional investment that would not otherwise be possible, strengthening communities, expanding opportunity and economic growth, and fueling innovation that advances the well-being of people and the planet, while laying the groundwork for mainstream investors to participate in transformative investments.
To make substantial progress toward a more just, inclusive, and resilient world, we need more catalytic capital to flow. The Catalytic Capital Consortium, or C3, aims to demonstrate the power of this form of investment to extend and deepen the reach of the impact investing field, helping to address the annual funding shortfall of $2.5 trillion in developing countries alone that is hindering the world from reaching the UN Sustainable Development Goals. The initiative is helping a select group of outstanding, diverse funds address some of the world’s most pressing challenges, while also building knowledge, awareness, and use of catalytic capital globally.