Advancing Practice in Catalytic Capital: Guidance Note 1—The Seeding Role
According to the Catalytic Capital Consortium:
The first of a series of three publications, this guidance note emerged from a series of conversations with experienced catalytic capital providers (styled as “Learning Labs”) and fund managers, all of whom generously shared their insights, experiences, and expertise with us over several months. This document attempts to capture many learnings pulled out from conversations relating to creative approaches for navigating implementation challenges and crafting success strategies when deploying catalytic capital. Each publication will focus on one of the three “roles” catalytic capital can play when supporting an investee, as delineated by Tideline in 2019: Seeding, Scaling, and Sustaining. Although this first document focuses on the Seeding role, wherein catalytic capital is deployed to funds or other investment vehicles that have novel aspects of their pursued strategy, the proposed structure and investments are considered new, or they are managed by a new investment manager, we think it has implications for other use cases as well.
The first of a series of three publications, this guidance note emerged from a series of conversations with experienced catalytic capital providers (styled as “Learning Labs”) and fund managers, all of whom generously shared their insights, experiences, and expertise with us over several months. This document attempts to capture many learnings pulled out from conversations relating to creative approaches for navigating implementation challenges and crafting success strategies when deploying catalytic capital. Each publication will focus on one of the three “roles” catalytic capital can play when supporting an investee, as delineated by Tideline in 2019: Seeding, Scaling, and Sustaining. Although this first document focuses on the Seeding role, wherein catalytic capital is deployed to funds or other investment vehicles that have novel aspects of their pursued strategy, the proposed structure and investments are considered new, or they are managed by a new investment manager, we think it has implications for other use cases as well.
