Frontiers in Social Innovation

6 _____________________________________ Market Creation

Catalyzing New Markets with Early-Stage Impact Investments

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Matt Bannick

We cannot solve our problems with the same thinking we used when we created them.

—Albert Einstein

The prevailing market economy, fueled by an efficient, return-maximizing financial system, has brought stunning advances in science, human longevity, and global prosperity. Financial markets, and the capitalist system they support, however, have done less well in other critical areas, such as serving the needs of disadvantaged populations and protecting the environment. Impact investing has generated optimism that “investing for good” can help address some of these market failures. ...