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Top 6 Insights on How Private Investment Capital Can Address the $2.5 Trillion SDG Funding Gap

  • Innovative funding products are key - equity is not the only solution.

  • Early funding and operational support are vital to success.

The Organization for Economic Co-operation and Development (OECD)’s 2020 report estimates that there is a $2.5 trillion annual gap in the funds needed to deliver the SDGs by 2030. Insitor Partners, the first impact fund manager in South East Asia and a pioneer investor in South Asia, recently collaborated with AVPN, Asia’s leading social investor network, on a webinar sharing thought leadership from investors, operators, and founders on how private investment capital can be mobilized into the region.

During the session, Insitor shared their perspective on how backing founders building life-changing solutions has positively impacted more than 40 million low-income consumers across developing Asia, including sharing experiences on how they have mobilized innovative financing solutions to meet the crucial early funding needs of their founders. The key takeaways from the session are outlined below:

  1. Helping to effectively match the needs of founders building life-changing solutions for low-income consumers with early stage capital is a key mobilizer to closing the $2.5 trillion funding gap

  2. For early stage businesses, equity plays a crucial role in supporting expansion, but is not the only solution; a growing number of instruments can also be utilized for optimizing financing, including hybrid debt structures and guarantees

  3. Debt is an attractive entry point for new investors into the social impact investing space - risk is more limited, and it comes with the ability to test investment theses and have the option to become part of a portfolio company’s broader funding journey

  4. Early funding and operational support for social impact businesses helps build success and is crucial to putting in place the internal infrastructure required for scaling to reach more consumers

  5. Local investor presence and knowledge are key to navigating social, economic, political and cultural barriers, particularly in less developed markets where these factors can play a large role in the ultimate success of a business

  6. Gender smart investing has an amplifying positive impact on uplifting standards of living for entire communities, and helps to unlock the untapped potential of female entrepreneurs, employees, and consumers

To learn more, access the full recording to the session here:

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