What is catalytic capital?
Catalytic capital is a form of investment that is willing to take more risk, be more patient, or accept lower financial returns in order to achieve greater social or environmental impact. It plays a critical role in enabling new markets and supporting early-stage innovation, especially in sectors or regions that are underserved by mainstream finance.
Rather than being one single approach, catalytic capital comes in many forms. It can include program-related investments, equity or quasi-equity in early-stage businesses, first-loss capital in blended structures, or technical assistance. Increasingly, corporates are also deploying their capital in ways that align with sustainability goals—combining commercial and impact motives.
Nordic perspectives: Abler Nordic and Green River VC
At the April 24 member meeting, Abler Nordic shared how they use government-backed tools like technical assistance and foreign exchange facilities to de-risk investments across Sub-Saharan Africa and South and Southeast Asia. Their experience shows that public support can go a long way in mobilizing private investors—every dollar of support from government has helped them raise sixteen dollars from the private sector.
Green River VC and ClimatePoint presented a very different, but equally catalytic, model. As a climate impact investor based in Oslo, they focus on “First-of-a-Kind” investments—backing new technologies that are difficult for traditional investors to support. Their portfolio spans vertical farming, sustainable aviation fuel, electric ferries and more, always grounded in robust life-cycle assessments and measurable climate benefits. What stood out was how they work closely with corporate clients to align investments with net zero strategies and CSRD requirements.
Global insights: Acumen on building markets from scratch
The April 28 webinar featured Acumen, a global pioneer in impact-first investing. For more than two decades, they’ve been investing where markets have failed—often in the toughest places and sectors. With over 260 million dollars deployed and more than 100 million lives impacted, their approach is to combine philanthropy and patient capital to support entrepreneurs who are solving real problems in energy access, agriculture, healthcare and education.
What makes Acumen’s model unique is how they stay with companies across their growth journey. They provide early funding, technical assistance and support systems that help these businesses scale. Their investments in clean energy—such as the well-known story of d.light—have helped create entirely new markets, especially in East Africa, where access to energy remains a major barrier to development.
Takeaways
These two events made clear that catalytic capital isn’t just a concept—it’s a flexible and essential tool for change. Whether it's used to bridge the “valley of death” for new technologies, enable clean energy access in underserved regions, or support companies with measurable impact, catalytic capital is helping to build the foundations of more inclusive and sustainable markets.
We’re grateful to Abler Nordic, Green River VC and Acumen for sharing their insights and experiences. Their work illustrates how catalytic approaches—tailored to local context and impact goals—can unlock both private capital and systemic change.
