- Published by
- The Catalytic Capital Consortium (C3)
This guide sets out a practical framework for understanding and addressing capital gaps in impact investing through the strategic use of catalytic capital.
It explains how gaps arise from misalignments between investee needs and investor requirements, including both rational barriers (risk, return, cost and liquidity) and mindset barriers (awareness, familiarity and attitudes).
Using case studies from agriculture finance in Africa, rooftop solar for MSMEs in India and employee ownership in the United States, it shows how to move from diagnosis to coordinated responses that combine investment, technical assistance, market influence and policy engagement.
The guide is useful for strengthening investment strategy, targeting scarce catalytic capital more effectively and supporting market-level change. It is aimed at experienced catalytic capital investors, DFIs, foundations and blended finance practitioners.