What exactly is the missing middle?
The result is that most highly innovative and early-stage impact ventures fail to meet the funder’s risk-adjusted return expectations. Wietse van der Werf, founder and CEO of Sea Ranger Service, a social venture that creates both social and environmental impact, reflects on the difficulty to find alignment with investors.
Making smart investments in early-stage impact ventures
Tip #1. Use hybrid instruments such as mezzanine instead of plain equity or debt
Check the extract from our Structuring Impact Investments course below for more insights into the pros and cons of mezzanines for investors and entrepreneurs.
Tip #2. Establish smart collaborations to make pursuing impact a revenue-generating activity
Check this other extract from the Structuring Impact Investments course below for more insights into Social Impact Incentives.