impactgrid - the next gen platform for impact investing, powered by blockchain technology

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Investrata Foundation for Social Entrepreneurship

TRANSPARENT

IMPACT INVESTING

DECENTRALISED

Impact Grid Designing a transparent, secure, decentralized platform for Impact Investing, powered by blockchain technology

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2012 2013 2014 2015E

Annual Impact Investments – Survey Based (US$ billion)

Source (Multiple): JP Morgan GIIN, 2012 – “Perspectives on Progress: The Impact Investor Survey”, 2013 & 2014 – “Spotlight on the Market: The Impact Investor Survey”: Eyes

on the Horizon: The Impact Investor Survey

Despite skepticism, Impact Investing continues to grow as an asset class globally

While the market size has yet not been fully quantified, the aggregate assets indicate that the market is

substantial, with significant potential for growth

AUM

Private Equity

Private Debt

Equity-like Debt

Public Debt

Public Equity

Real AssetsPay-for-performance instruments

Others Deposits & Cash Equivalents

Total AUM by Instrument (%)

100% = US$ 60 billion

Highlights

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A diverse set of factors are contributing to the growth and global recognition of the asset class

Impact Investments Growth Drivers

Transfer of wealth from baby boomers to children

Recognition by world leaders that current trajectory is not sustainable

Evidence of scalable business models that create social and environmental value

Increasing confidence by governments and philanthropists

Broader considerations of risk in investment decisions

Growing commitment of asset-owners and corporations to deploy capital

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However, key challenges continue to hamper mainstream adoption and expected hyper growth

Source (Multiple): The Impact Investor Survey by GIIN, JP Morgan, 2015, Charting the Course – a report by WEF, 2014, SocialVentures.

Lack of appropriate capital

Fund size is too small for investors

Illiquid Products / Difficulty in exit strategies

Shortage of quality investment opportunity

Lack of uniform definition & understanding

Difficulty of measuring social outcomes

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Key Challenges

While impact investing has entered the mainstream mind-set, it is yet to become a part of the strategy,

operations and business culture of individuals and mainstream investment institutions

Under-developed intermediary market

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Meanwhile, a set of emerging technologies / trends show promise and have grown exponentially in the past few years

Together they can effectively address many of the teething challenges and help propel the

mainstream adoption and growth of impact investing

A permission-less distributed database that maintains a

continuously growing list of transactional data records

hardened against tampering

Blockchain Technology

A mechanism that enables broad groups of investors to

fund startup companies and small businesses in return

for private securities. Can be equity-based, debt-based

or a hybrid. Usually facilitated via online platforms

Crowd Investing

Generally, refers to software whose source code is

published and made available to the public, enabling

anyone to copy, modify and redistribute the source

code without paying royalties or fees

Open Source

Also called collaborative consumption, it is peer-to-

peer-based sharing of access to goods and services

coordinated through community-based online services

Sharing Economy

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Impact Grid is a project to harness the potential of key emerging trends & technologies for Impact Investing

The goal is to design a transparent, secure and decentralized exchange to connect impact investors, social

enterprises and others in the ecosystem and rapidly scale socio-environmental impact

Initially conceived to address our need for smart and transparent impact fund management,

the plan swiftly evolved towards building a platform to transform impact investing

A platform for intermediaries to offer and administer impact investing instruments

(funds, bonds, etc)

A modern approach to design and structure

new financial instruments for impact

investing

A consensus based mechanism to

systematize impact measurement and

reporting

A meaningful way to track, measure,

evaluate and reportsocial impact

A crowd investing marketplace directly connecting impact

investors and social enterprises

Democratizing impact investing. Making it

available to all. With an active secondary

market

An open Impact marketplace (going beyond financials)

Fostering open socio-environmental

innovation via peer-to-peer collaboration /

asset exchange

Impact Grid – A blockchain-powered next gen platform for Impact Investing

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Impact Grid will bring together the existing industry actors in a whole new way …… and add a host of new ones

The decentralized exchange will facilitate the design and creation of a new breed of financial instruments for

impact investing while allowing existing structures to scale

A transparent, secure and decentralized system will allow for better trust and governance while

seamlessly connecting a host of next-gen social entrepreneurs, impact investors and intermediaries

Source: WEF, 2014

Retail Clients

(<$100k)

Pension /

Sovereign Funds

Mass Affluent

($100K-$1MM)

Endowments /

Foundations

HNWIs

($1MM-$50MM)

Insurance

Companies

UHNWIs

($50MM-$100MM)

Hedge Funds /

Mutual Funds

Family Office

($100MM-$1B) Development

Finance Institute

(DFIs)Billionaires

(>$1B)

Capital Providers

Wealth

Advisors

Fund Managers

Investment

Funds

Financial

Intermediaries

Other Intermediaries

(Consultants, Lawyers,

Service Providers)

Depository

Institutions

Investment

Targets

Financial

ServicesFees

Financial

ServicesFees

Investment

Net Return

Investment

Gross Return

Direct Investment

Investment Return

Fees

Technical Assistance

Principal

& Interest

Debt

Capital

Principal & Interest

Debt Capital

KeyTracks flow of capital

Tracks Relationship

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The project will have three phases, beginning with the design for a smart platform to administer an impact fund

2016 2017

1. Smart Impact

Fund Platform

2. Crowd Investing /

Lending

One Simple Impact Fund

#ImpInvMarketplace

2018

3. Open Impact

Exchange

Peer-2-Peer Exchange

An open source project, Impact Grid will allow anyone to extend, integrate and

deploy an impact exchange

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There exist some key dependencies including currently evolving technology and access to necessary resources

Evolving

Technology

Its still early days for blockchain and related technology / protocol which

continues to evolve

• Uncoordinated - diverse group of developers

• Still broadly associated with Bitcoin and other cryptocurrencies

Regulation The jury is still out with many governments and associated regulatory

bodies still trying to understand emerging trends and related technology.

• Blockchain , Crowd Investing, Peer-to-Peer lending

Capital and

Resources

Capital and resources to build a platform that will facilitate cross-border,

cross-functional ecosystem collaboration

• Regional expertise

• Patient Capital

Dependencies

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We are eager to hear from you and welcome individuals & organisations to join us on this journey to advance social change

We try to do our part, practice what we preach and maintain a minimal physical and carbon footprint

Reach us

See a more detailed version of this

presentation:

https://goo.gl/7rsWEL

www.impactgrid.org

facebook.com/ImpactInvesting.in

@ImpactIN

[email protected]

https://goo.gl/7rsWEL

impactgrid - the next gen platform for impact investing, powered by blockchain technology

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