EXCERPT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE APRIL 2014 EDITION.
While impact investing is still far from being an accessible opportunity for the general population, investor demand for greater liquidity and platforms such as Kiva and Kickstarter make it clear that the potential for involving retail investors in the sector is immense. A social stock exchange, which can create a liquid market for private investments that generate social and environmental value, is one approach to unlocking a greater supply of impact investment capital. From a demand side, social stock exchanges can enable SEs to access global mission-aligned investment from diverse investors. Moreover, a social stock exchange platform can accelerate the transition towards consistent and widely accepted social and environmental impact reporting.
This article first appeared in the WEF Report, “From Ideas to Practice, Pilots to Strategy: Practical Solutions and Actionable Insights on How to Do Impact Investing.” A special note to Michael Drexler, Abigail Noble, Marina Leytes, and Ann Brady, who contributed to the report.