NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Monday, December 1, 2014

The idea of doing good while making a healthy profit is rapidly gaining ground, particularly among wealthy Silicon Valley entrepreneurs but also among foundations and pension funds. Social impact investing — for-profit investing for social good —­ has crossed into the mainstream and is driving investment decisions.

So far, social impact investing accounts for just 0.03 percent of the more than $150 trillion the world’s wealthy invested last year, or about $46 billion, according to data from Boston Consulting Group and JP Morgan Chase & Co. But it could hit $1 trillion within a few years, say some experts.

Among the signs of growing interest is the recent pledge by the Omidyar Network to invest $100 million in early-stage risk capital over the next three years to address big-picture initiatives, including “financial inclusion,” education, consumer-related Internet opportunities and mobile technology.