Social impact investors want their capital to generate positive changes in societies, as well as some return of (or on) capital.
Three challenges faced by the social impact investment community are, 1) How to measure different kinds of social change, 2) How to quantify the monetary value of particular social changes, 3) How to measure investment risk, and 4) How to lower investment risk.
Sovereignty First is working on these challenges.
Right now, we are gaining experience, testing tools on the ground, and gathering data that could enable more reliable blended finance contracts, social impact bonds, due diligence, and negotiation and implementation of agreements in countries outside of the mainstream of international investment—war zones, fragile states, frontier economies and developing economies.