Is there room for NGOs in the impact investing ecosystem?

Is there room for NGOs in the impact investing ecosystem?

And there is space for them in the industry, though there’s likely to be some skepticism, both internally at individual INGOs and externally from a broader impact investing community that might question their ability to understand business models, analyze investments and structure deals. 

One place where INGOs could step in is the missing middle of financing, the $25,000 to $200,000 or up to $500,000 range of investment, which many impact investors find too risky or too expensive, said Jenny Everett, the deputy director of ANDE. They can also play a role in helping entrepreneurs gain the skills they need to be ready for investments from other investors, she said.

But for many NGOs, working in impact investing will be a new approach and will include the need to either train staff or bring in people with the right skill sets.

“Can they plug some of the gap? If they’re not addressing talent and the missing middle, it’s less exciting; if they fill some of the gaps then it could be a real win,” Everett said.