Innovative financial solutions have become essential to address complex global challenges. Blended finance has emerged as a critical approach that combines different types of public and private sector financial resources to maximize impact and sustainability. When a combination of philanthropic, results-based, and impact investing capital are applied to fund the same venture/program, real and lasting results can be achieved. 

According to an article by Bridges Fund Management—a pioneer in sustainable and impact investing—"Blended finance is about combining different types of capital to address global challenges. It is the practice of pairing public and philanthropic funds with private sector financing to support social and environmental projects."

Results-based finance (RBF) plays a pivotal role in ensuring an efficient allocation of funds while achieving tangible outcomes. According to the Stanford Social Innovation Review, results-based finance models "tie financial rewards to the achievement of predetermined objectives." This approach aligns incentives with outcomes and holds all parties accountable for delivering measurable results, reducing inefficiencies, and increasing the chances of success.

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Source: OECD Blended Finance 

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The Next Generation of Results-based Financing: An Impact Marketplace

Common Good Marketplace (CGM) offers unique and highly promising opportunities for efficiently applying these principles to a blended capital stack.  CGM operates as a dynamic ecosystem that connects impact-driven projects with a diverse network of capital. Through its innovative results-based finance framework, CGM’s impact marketplace ensures that each layer of capital is allocated strategically to initiatives that achieve measurable outcomes. At its core, the Common Good Marketplace leverages cutting-edge technology to facilitate transparency, accountability, and efficiency in achieving and funding impact.

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CGM employs best practices and data-driven impact measurement tools to continuously measure and verify the performance of projects. This data-driven approach allows for evidence-based decision-making, enabling funders to make more informed choices and support organizations with proven track records of success. It also allows them to more efficiently and effectively deploy capital to proven results. 

But CGM is only as good as the partners it works with and the impact they fund and deliver. CGM partners with and is supported by UBS, Google Startups for Sustainable Development, Prison Entrepreneurship Program, Moonshot Global, Lifenet International, MiracleFeet, Luminos Fund, Imagine Worldwide, Village Enterprise, International Care Ministries and many other amazing organizations. 

CGM and its partners are advancing the impact economy through a result-obsessed impact marketplace. The result is the development of a collective “performance culture” where all partners continuously improve their strategies, data collection, capital allocation decisions and impact reporting which, in turn, makes us all more effective at scaling proven solutions to address the world’s greatest challenges. 

Blended finance is a powerful tool to address complex global challenges, but to be most effective it requires that RBF be applied throughout the capital stack. 

As we navigate the path towards a more equitable and sustainable world, innovative solutions like our tech-enabled Marketplace will undoubtedly play a crucial role in shaping a better future for the common good.

If you’d like to learn more and partner with us to drive results-based funding to proven solutions, get in touch with us here: https://www.commongoodmarketplace.com/buyers

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References:

1. Bridges Fund Management. (n.d.). "Blended finance: The key to unlocking private investment for the Sustainable Development Goals." Stanford Social Innovation Review.

2. Stanford Social Innovation Review. (n.d.). "Impact Investing Can't Deliver by Chasing Market Returns."

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