Back to the Frontier: Investing that Puts Impact First

This report explores the emerging approach of "impact-first" investing, which prioritizes social or environmental impact over market-rate financial returns. While impact investing has grown by combining financial and social good, this paper highlights a companion strategy that accepts below-market returns to achieve greater impact. This "catalytic capital" fills the gap between traditional market-rate impact investing and philanthropic grants, offering a crucial pathway for ventures with high impact potential but lower financial viability. It advocates for recognizing and embracing this approach to address urgent societal challenges.