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Building the Ecosystem for
Impact Investing
Why It Matters
P. Ming Wong
Hong Kong
November 4, 2014
About Asia Community Ventures
Independent Hong Kong-registered charity incorporated in September 2012.
Mission
To help entrepreneurs build and scale social businesses that improve the
livelihood of vulnerable communities in healthcare, education and
environment.
Core Programs
Research on ecosystem building, policy innovation and impact investing
Incubation services for entrepreneurs and their social startups
Advisory services for philanthropic funders
Major Projects Completed
Encourage
Enabling Role of
Government
Organized and hosted Impact Investing Forum 2013: Accelerating the
Industry Regionally. 350 participants from 10 Asian countries - March
2013.
Administered, on behalf of the Rockefeller Foundation, a US$400,000
Impact Economy Innovations Grant Fund for intermediaries. 40
applications from 9 Asian countries – April to November 2013.
Report #1: EngageHK
Objectives
1. Map Hong Kong’s social ecosystem
2. Identify stakeholders’ needs & priorities
3. Propose ways forward for Hong Kong
EngageHK - The Seven Sub-Sectors
EngageHK: Key Recommendations
Encourage
Enabling Role of
Government
What is Impact Investing?
… much more than just investing in social enterprises.
Source: G8 Task Force on
Social Impact Investing
Why Impact Investing?
De-risk social innovation
Crowd-in private sector
support
Attract new capital to grow
social ecosystem
Leverage business
approaches and impact
measurement tools
Recycle capital for future
investments
Social Impact Investment Taskforce Report
Summary Objectives for Policymakers
Government has three important roles:
Market Builder
Increase resources and support for impact-driven organizations
Increase flow of talent
Develop impact investment culture with a range of
intermediaries
Encourage new investors to enter social impact investment
Market Participant
Increase effectiveness as purchaser of social outcomes
Increase investment from mainstream investors
Market Steward
Design appropriate regulatory & legal framework for impact
driven organizations
Reduce legal & regulatory barriers for impact investors
G8 National Advisory Board Reports
UK
USA
Japan
France
Australia
Italy
Canada
Germany
Report #2: Adopting the London Principles
Objectives
1. Analyze Hong Kong’s social funds
2. Introduce the London Principles
3. Propose policy innovations for Hong Kong
Observations on Existing Social Funds
Different Approaches, Rather Disconnected
Variations of Government Social Subventions
Lacks Intentionality for Sustainability and Scalability
Our HK$500 million Social Innovation & Entrepreneurship
Development (“SEI”) Fund has potential to address these gaps
and be different from existing funds.
The London Principles of Impact Investing
Preamble
… a set of guidelines intended to assist governments considering impact
investing as a tool to address social objectives,
… offer guideposts that ideally point to better strategy and policy development,
… are drawn from a multitude of political, economic, and cultural contexts.
… support a reflective approach that drives learning and innovation.
Summary Recommendations for Policymakers
Clarity of Purpose
Create an impact investing agenda
Establish an Office of Social Innovation
Conduct needs-based assessment of social funds as linked to
longer-term social issues
Stakeholder Engagement
Provide a public platform for impact investing policy review
Provide incentives to foster an enabling environment for impact
investing and social innovation
Engage with global impact investing community
Market Stewardship
Demand-side through partnerships
Supply-side through further research initiatives
Intermediary development via targeted funding at scale
Policy and legal infrastructure
Summary Recommendations for Policymakers
Institutional Capacity
Review departmental and policy focus to be responsive to
addressing structural social challenges
Commission internal review of existing institutional capacities
and policies
Universal Transparency
Funder – support ideas and initiatives addressing structural
issues
Regulator – foster policy transparency and reliability
Enabler – leverage on open data approaches to spur social
innovation via technology
About Giinseng
Learning by Doing
Engage with Social Entrepreneurs
Invest in Social Businesses
Crowd Funding
Going Forward
Impact investing is moving into the mainstream and will be
a potent force for social good to supplement government
funding.
Creating an ecosystem to promote social innovation and
impact investing is the way forward..
Photo Credit: Eddie Kwong/WMA Open Photo Contest 2013
One More Thing
Photo Credit: Dale de la Ray/AFP/ Getty Images