Catalytic capital and blended finance

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Updates to overview

Add visuals, like this example:

https://www.crossboundary.com/energy-access/⁠

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https://www.weforum.org/reports/blended-finance-toolkit⁠

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http://www3.weforum.org/docs/WEF_Blended_Finance_Insights_Investments_Vehicles_Facilities_report_2016.pdf⁠

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http://www3.weforum.org/docs/WEF_Blended_Finance_A_Primer_Development_Finance_Philanthropic_Funders.pdf⁠

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https://ssir.org/articles/entry/attracting_greater_philanthropic_funding_the_private_equity_model#⁠

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file:///Users/zakweston/Desktop/The_State_of_Blended_Finance_2020.pdf

Reports from
`https://gsgii.org/`⁠

Catalysing an Impact Investment Ecosystem: A Policymaker’s Toolkit Policy & Advocacy

Enabling ventures to leverage technology for impact

Demand of Capital It analyses the different enabling elements across the lifecycle of impact-tech, and focuses on recommendations to improve the global tech-for-good ecosystem Investing for a better world

Supply of Capital It focuses on recommendations to strengthen the financial services value chain to meet the sustainable development goals

Widening & Deepening the Market for Impact Market Builders It outlines the why and what of impact investing and presents a theory of change for widening participation and deepening practice with practical guidance on actors and levers

Exemplary overview of infrastructure finance for social development

https://www.crossboundary.com/wp-content/uploads/2020/12/Project-Financing-Mini-Grids-Online_Pages.pdftr⁠

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Financial Times IFC awards

Social impact bonds

https://toplink.weforum.org/ project/blended-finance-network

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https://bigsocietycapital.com/how-we-work/making-investments/support/building-blocks⁠

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https://www.goodfinance.org.uk/tools-and-resources

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https://www.goodfinance.org.uk⁠

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https://evpa.eu.com⁠

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https://www.edf.org/ecosystems/how-catalytic-capital-can-support-sustainable-agriculture⁠

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https://www.acf.org.uk/networksandevents/siig⁠

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https://bigsocietycapital.com/how-we-work/creating-new-ideas/how-we-co-develop-ideas⁠

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Coalition for Green Capital

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https://www.edf.org/ecosystems/how-catalytic-capital-can-support-sustainable-agriculture⁠

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Systemiq

blended finance report⁠

report B⁠

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Review Catalytic capital asana project, including funds to start, investor donors, etc.

Government backed sustainability bonds

Alternative investment management firms

Maybe the hybrid Dana Farber donate/invest fund

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Guaranteed offtakes, AMC’s. minimums⁠

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https://www.alignedclimatecapital.com⁠

/ (Not only is this a fascinating case study, but alternative protein should be their fifth pillar!

Working capital, supply chain finance, reverse factoring, revolving credit facility

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https://www.yieldstreet.com/resources/article/supply-chain-financing⁠

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High:

http://www3.weforum.org/docs/WEF_Blended_Finance_A_Primer_Development_Finance_Philanthropic_Funders.pdf⁠

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Low:

https://developmentfinance.un.org/node/2463⁠

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Research using the Convergence resource library

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https://www.convergence.finance/news-and-events/news/2ODjLTknchuuvzPWa4rty4/view⁠

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https://www.convergence.finance/resource/3qke8x7gEFCsmKRXi2JD8o/view⁠

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https://www.crossboundary.com/wp-content/uploads/2020/12/Project-Financing-Mini-Grids-Online_Pages.pdf⁠

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https://www.convergence.finance/resource/1gR7Z7AlksKUIQ6wgYuSkm/view⁠

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Convergence has some upcoming workshops and events, submitted membership request

Need membership to access this resource:

https://www.convergence.finance/resource/9ncqGGGACPGY9QonSWGSm/view⁠

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Work with development finance groups

Pull categories from BioFungible overview, table in Evernote

Designing a blended transaction requires two distinct skill sets, one being financial expertise to develop the right financial structure with appropriate risk-return profiles for funders and investors, and the other, sector-specific expertise to determine interventions that can yield the desired development impact.

develop a new Green FIDC⁠

(Portuguese for Green Receivables Fund) - an organization with sector-specific knowledge needed to partner up with an institution bringing in the financial expertise.

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https://www.convergence.finance/news-and-events/news/4uybIuW7U5mhONPIuvECEs/view⁠

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Good Food Labs

This could be a model for GFRI, funded by donors and contracts

Alt protein finance labs

Alt Protein Labs

Protein Lab

GFI Labs

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https://www.crossboundary.com/labs/our-prototypes/⁠

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https://www.crossboundary.com/labs/our-research/⁠

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Identifying solutions and testing them, RCT, very EA friendly

We conduct studies of promising technical, policy, commercial model, financing, marketing, and other innovations to identify promising scaleable solutions to large-scale problems facing the alternative protein industry

Good explanations

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https://www.finance-in-motion.com/what-we-do⁠

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Fund design

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https://rsfsocialfinance.org/⁠

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https://www.crossboundary.com/energy-access/open-source/⁠

(they are sharing their paperwork February 15 2021)

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https://www.innpact.com/⁠

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https://www.ecobusiness.fund/en/the-development-facilities⁠

, "Info for Investors" section

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https://www.ecobusiness.fund/fileadmin/user_upload/Publications/english/ecobusiness_DF_Pitchbook_LAC_subfund_final_10_2019.pdf⁠

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https://macsonline.de/ivs/energy-finance/service/⁠

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Example:

https://www.sunfunder.com/what-we-do⁠

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https://www.bridgesfundmanagement.com/⁠

(They work to build this field, would make an excellent interview)

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https://www.bridgesfundmanagement.com/wp-content/uploads/2017/08/Bridges-Spectrum-of-Capital-screen.pdf⁠

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How we might participate in social impact bonds, development impact bonds

Eventually we could launch a fund manager, our own funds, funds of funds,

Maybe we launch the fund of funds for the catalytic part of the the capital

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https://www.bridgesfundmanagement.com/outcomes-contracts/⁠

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https://www.bridgesfundmanagement.com/long-term-capital/⁠

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Bridges Fund MGMT has already invested in vegetarian company

Launching business/industrial parks that are targeted to alt proteins, like at former malls (Bridges Fund Management has done this)

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https://www.bridgesfundmanagement.com/portfolio/flexspace/⁠

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https://flexspace.co.uk/unit-types/workshop/⁠

in key areas

This is the physical instantiation of the top ideas

Research institute system

Input characterization

BioFungible

Catalytic capital

Manufacturing

Cluster

How do non-profits generally participate and benefit? Informs GFI role

Potential fund managers: UBS (any group that has lots of funds), OPP, Coller, Unovis, Blue Horizon, Siddhi, Align Impact, Big Society Capital, Arabella, impact investment wholesalers

Other sources:

https://www.convergence.finance/blended-finance#investors-overall⁠

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Other sources:

https://www.impactassets.org/⁠

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Go through their full list for ideas and research

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https://www.impactassets.org/⁠

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https://bigsocietycapital.com/portfolio/⁠

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Rabobank

ResponsAbility

AXA, Ardian

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https://gsgii.org/wp-content/uploads/2018/10/GSG-Paper-2018-Wholesalers.pdf⁠

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Can be public/private partnerships

Calvert Impact Capital

Ceniarth

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https://www.thinknpc.org/about-npc/⁠

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https://www.convergence.finance/resource/1qEM02yBQxLftPVs4bWmMX/view⁠

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GFI Dev team

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https://www.convergence.finance/design-funding⁠

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Gates, MacArthur, Rockefeller, Ceniarth, etc.

Mention design funding grants from Rockefeller, Convergence

To arrange for a bespoke knowledge exchange for your organization, email Aakif Merchant at

aakif.merchant@convergence.finance⁠

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https://www.convergence.finance/design-funding/grant-portfolio⁠

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https://www.convergence.finance/design-funding/grant-portfolio/34Ra3ds5ZKi9TQDTKz26T8/view⁠

share with GFI Brazil as an interesting case study

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http://blue-finance.org/⁠

Share with Jen, also

https://www.convergence.finance/design-funding/grant-portfolio/1p0gkVK0kW7IBAlHNniZ4J/view⁠

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https://bluemarktideline.com/clients/⁠

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This depends on type of instrument: loan, equity, grant, guarantee

This idea has some strong affinity with guaranteed offtakes, AMC's/guaranteed minimums, shared repurposable facilities/equipment,

Ask GIIN report author or research person

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https://www.unpri.org/⁠

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https://www.pgim.com/real-estate/impact-investing⁠

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https://cdn.pficdn.com/cms/pgim-real-estate/sites/default/files/2020-11/PAI%20One-Page%20Agribusiness_Generic%202020.pdf⁠

- slaughterhouse loans

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https://northskycapital.com/⁠

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https://leapfroginvest.com/⁠

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https://www.incofin.com/⁠

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https://www.omnivore.vc/⁠

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http://ceniarthllc.com/strategies/impact-first-capital-preservation/⁠

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http://ceniarthllc.com/strategies/responsible-asset-management/⁠

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Blue Orchard

Sustainable Jobs Fund/ SJF Ventures

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http://www.olympuscap.com/en/industry-expertise/environmental-and-clean-energy.html⁠

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https://www.baincapitaldoubleimpact.com/⁠

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https://generatecapital.com/⁠

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https://gssgsolar.com/impact/⁠

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https://www.generationim.com/⁠

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Search for project finance facility

We could spin out a broker/consultant/advisory firm that helps connect alt protein firms with the investment and finance products they need

We could literally get design grants to create Solutions!

In 2015, Blue Forest received an early-stage design grant from the Rockefeller Foundation’s newly launched Zero Gap Portfolio. Here, the Rockefeller Foundation was specifically looking for projects that were i) scalable and replicable across a broader market, ii) commercially viable, and iii) creative in their structuring approach. Rockefeller’s funding offered crucial support to Blue Forest as they continued to build out the model and identify investors.

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https://bigsocietycapital.com/how-we-work/social-enterprises-and-charities/⁠

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Start an impact investment wholesaler for the alternative protein sector

The India Impact Fund of Funds plans to lend US$1 billion to debt funds that invest in social enterprises. The Fund seeks to fill an apparent gap in medium- to long-term unsecured debt. It will target a 9% return over its ten-year life. The Fund aims to raise US$600 million from finance-first investors (those that emphasize return) and US$400 million from impact-first investors (those that emphasize social goals and do not necessarily seek a commercial return). The Fund will approach financial institutions and members of the Indian diaspora as finance-first investors. It will approach foundations and development finance institutions as impact-first investors. It will ask the impact-first investors to take a first-loss position.

Tasks

12.23: Map out this project and its workstreams, publications I need to write or get others to write, the topical cluster, action items

Promote this to the alt protein community

Promote alt proteins as an investment asset class to impact, catalytic, and blended finance community

Create own project in Asana

Parse subtask

Conduct research below

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https://www.morningbrew.com/daily/stories/2020/09/23/finance-beginners-best-articles-expert-resources⁠

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https://www.alignimpact.com/⁠

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12.24: After CE-SciTech meeting: Evaluate splitting out this section into its own document

Pitch this idea to Blue Horizon

Could launch this with Cass, get her help with researching this area

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https://missioninvestors.org/resources/catalytic-capital-essential-foundation-tool⁠

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New Energy Risk (NER) helps insure technical risk for breakthrough technologies to optimize cost of capital and accelerate time to market. We should talk to them

12.25: Subtask, write 2-pager/proposal on catalytic capital for January PhaseGate

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http://www.oecd.org/dac/financing-sustainable-development/development-finance-topics/blended-finance.htm⁠

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https://www.adb.org/documents/dfi-blended-concessional-finance-report-2018⁠

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Jan: This should be presented to GWS, OPP, FAIRR,

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http://www.un.org/esa/ffd/ffd3/index.html⁠

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http://sdiponline.org/⁠

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Jan: Work with MacArthur, Ford, Gates, Rockefeller, Omidyar, and others to show how alt proteins are an opportunity area for catalytic capital. Omidyar Network, Blue Haven Initiative and Candide Group, both family offices, have made substantial impact investments and done significant “catalytic” work. It can also be a corporation—Prudential

Join MacArthur's Catalytic Capital Consortium, Rockefeller Zero Gap initiative

As part of the initiative, MacArthur is dedicating up to $150 million in investments on a matching basis to approximately five funds or intermediaries that demonstrate a powerful use of catalytic capital across sectors and geographies

Work with

https://www.convergence.finance/⁠

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https://www.top1000funds.com/2020/01/insurance-giants-push-for-more-impact/#:~⁠

:text=Insurance%20companies%20are%20often%20public,which%20take%20time%20to%20change.

Securitization

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https://thegiin.org/current-members⁠

all their members

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https://thegiin.org/investors-council#zurich-insurance-group⁠

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AO doing impact investment, look up their annual report, ESG

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https://milliman-cdn.azureedge.net/-/media/milliman/pdfs/articles/esg-considerations-in-the-insurance-industry.ashx⁠

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Research to be done

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Production leasing/financing fund⁠

(also a project)

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https://www.yieldstreet.com/resources/article/supply-chain-financing⁠

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GIIN's research

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https://www.rockefellerfoundation.org/wp-content/uploads/FARockefellerFinalPDF_1.pdf⁠

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Rockefeller Zero Gap initiative

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https://impactalpha.com/catalytic-capital-impact-investors-unlock-off-grid-energy-financing-with-first-loss-guarantees/⁠

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https://beyondtradeoffs.economist.com/exploring-diversity-impact-investing-practices⁠

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https://omidyar.com/news/new-report-helps-investors-who-want-to-achieve-financial-returns-and-social-impact-find-the-right-opportunities/⁠

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https://www.mckinsey.com/industries/private-equity-and-principal-investors/our-insights/impact-investing-finds-its-place-in-india⁠

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There was a "first global summit of all development banks" in early November, 2020. Following from that, I'm hoping to spend some time early in C1 2021 trying to figure out how to get GFI a seat at the table when their "Agriculture Cluster" next meets. Here's the Ag Cluster's statement on "

Investing in Sustainable Food and Agriculture Systems: the Role of Public Development Banks⁠

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https://axial.substack.com/p/funding-models-in-life-sciences⁠

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Blake did u analyze ICOs Meatcoin Prime roots is a great model for e-commerce (add crowdfunding)

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https://www.macfound.org/media/files/C3_Introductory_Resources.pdf⁠

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https://omidyar.com/wp-content/uploads/2020/09/Across-the-Returns-Continuum.pdf⁠

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GIIN launched a Blended Finance Working Group