1. There is more than a $350 BILLION GAP between impact
investing’s potential and today’s reality. Many challenges prevent
entrepreneurs and impact investors from connecting, including:
u Want to support businesses with potential
for both financial and social returns
u May be willing to accept more modest
financial returns on investments that
provide a clear social benefit
u Estimate impact investing to be at least
a $400 billion market opportunity1
u In 2013, were managing $46 billion
in funds, almost a 20 percent increase
from 20122
BRIDGING THE PIONEER GAP:
How connecting ENTREPRENEURS
with IMPACT INVESTORS is helping
USAID end extreme poverty
THE PIONEER GAP
1
Impact Investments:An Emerging Asset Class. J.P. Morgan,The Rockefeller Foundation, GIIN. 2010.
2
Spotlight on the Market: Impact Investor Survey. J.P. Morgan, GIIN. 2014.
Through PARTNERING TO ACCELERATE ENTREPRENEURSHIP (PACE), USAID’s
U.S. Global Development Lab is creating partnerships to tackle the pioneer gap head-on.
LEARN MORE AT
www.usaid.gov/pace
u Create jobs
u Innovate to improve people’s lives
u Deliver goods and services
to underserved communities
to address social needs
u Drive economic growth
ENTREPRENEURS: IMPACT INVESTORS:
$
$
INVESTING
IN EARLY-STAGE
ENTERPRISES
RESEARCHING
AND SHARING
LESSONS
LEARNED
TESTING WAYS
TO INCUBATE
ENTREPRENEURS AND
CONNECT THEM
WITH INVESTORS
MAKING LENDING
TO ENTREPRENEURS
LESS RISKY
THROUGH
GUARANTEES
ENCOURAGING
APPROACHES
THAT COMBINE
INVESTMENT AND
PHILANTHROPY
USAID IS WORKING TO
BRIDGE THE PIONEER GAP BY:
POOR MARKET
CONDITIONS
NO CREDIT
HISTORY
FEWMENTORS
LACK OF EDUCATION
AND BUSINESS TRAINING
POLICY
BARRIERS
LIMITED CONSUMER
FINANCING
HIGH RISK
FEW
ENTREPRENEURS
SEEN AS
INVESTMENT-READY
NEED FOR
EVIDENCE OF FINANCIAL
VIABILITY