Human Capital is Blended Capital
The goal of impact investing’s blended capital approach is meant to democratise investment capital, to tear down barriers and unlock and crowd-on additional capital.
A recent Economist article noted that “blended finance is struggling to take off” and it is Secha’s fear that the focus on scalability rather than replicability makes these transactions more complex, more expensive and adds friction to the new flow of capital.
We contend that human capital is the “blended capital” we need. It is a replicable local resource with a huge multiplier effect.
Human capital is everything most blended capital is not. It is local. It is agile. It is patient. And it has massive multiplier effects.
So let’s borrow from nature, not finance and follow the path of “biomimicry”, not (per the economist) “financial wizardry”.