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Anchor different capital streams coming your way right now.
Blended financing is a strategic approach that combines different types of capital—public, philanthropic, and private—to mobilize investment for regenerative and impact-driven enterprises. By leveraging diverse funding sources, organizations can reduce risk, attract new investors, and scale solutions that generate both financial returns and measurable impact. This approach bridges the gap between traditional investors seeking returns and mission-driven entities focused on social and environmental transformation.
There are various impact investment instruments that facilitate blended financing, each designed to align financial incentives with sustainability objectives. These include grants, which provide non-repayable capital for early-stage impact projects; concessional loans, which offer below-market interest rates to enable mission-driven growth; and equity investments, where investors take ownership stakes in enterprises to share in their long-term success. Other innovative mechanisms such as social impact bonds (SIBs) and revenue-sharing models ensure that financial flows are tied directly to measurable impact outcomes.
For regenerative enterprises, selecting the right mix of financing instruments is crucial to balancing financial resilience with mission integrity. Structuring investment strategies that integrate blended capital sources ensures that projects can sustain operations, scale effectively, and drive long-term systemic change without compromising ethical values or regenerative principles and fulfilling all stakeholders’ expectations.
"Blended Value – organizations with entire new approaches are emerging, they look for hybrid operations that involve several types of return… social and profitable venture capital that can have return equal (or superior) to market rates while it also achieves a clear social and environmental value… as will as, opportunities for many social investors that look for different mixes of “Blended” financial and social return…"
NICHOLLS (2010)
MUST READ
Financing for Social Impact: Tailored and Hybrid Finance
This source is a comprehensive report from the European Venture Philanthropy Association (EVPA) titled "Financing for Social Impact – The Key Role of Tailored Financing and Hybrid Finance," published in 2017 with support from the European Commission. The report explores how venture philanthropy and social investment (VP/SI) organizations can best finance social purpose organizations (SPOs) to maximize social impact. It focuses on two key practices: tailored financing, which involves matching financial instruments (grants, debt, equity, and hybrid) to the specific needs of SPOs, and hybrid finance, which explores how different types of capital and actors can collaborate to support impact investments. The report details the methodology, challenges, and learnings associated with these approaches, drawing on insights from experts and providing case studies. Ultimately, it advocates for a more strategic and collaborative approach to financing social impact initiatives in Europe.
real-life examples
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An impact investment mechanism that raises capital for conservation projects while offering financial returns to investors.
The Nature Conservancy's Green Bonds
GLOBAL
A social investment fund that blends philanthropic funding with impact investments to support enterprises solving systemic social and environmental challenges.
Yunus Social Business
GLOBAL
fundamental questions
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What are the most suitable financing instruments for my organization's impact objectives?
How can blended financing help
de-risk investment in regenerative projects?
What role does public or philanthropic capital play in attracting private sector investment?
How can my organization structure financing to ensure long-term sustainability and mission alignment?
What metrics can be used to evaluate the success of blended financing strategies?
"Brilliant thinking is rare, but courage
is in even shorter supply than genius"
PETER THIELSING
frameworks
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Blended Capital Stack Model
A structure illustrating how different types of capital can be layered
to fund regenerative enterprises.
LEARN BY PRACTICING
assignments
Answer to the Fundamental Questions
Still having doubts?
Online Clarification Session
6 - 7:30 PM (Lisbon Time)
05th & 12th June
With Miguel Almeida
Below, you’ll find the assignments grouped into three categories to help you prioritize your work effectively. Mandatory exercises are essential and must be completed. Recommended assignments will strengthen your understanding and are highly encouraged. If you have additional time and want to explore further, dive into the Extra category to deepen your knowledge of the topic.
To support you, we’ve also curated a list of key content from the hub. This content was carefully selected to help you complete the assignment, and includes an estimated time commitment for each item so you can better plan your learning journey.
Once you've completed your exercises, please upload your responses to your organization workbook using the link you received by email.
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