Designing a transparent, secure, decentralized platform for Impact Investing, powered by blockchain technology

1. 1
Investrata Foundation for Social Entrepreneurship
TRANSPARENT
IMPACT INVESTING
DECENTRALISED
Impact Grid Designing a transparent, secure, decentralized platform
for Impact Investing, powered by blockchain technology

2. 2
Investrata Foundation for Social Entrepreneurship
40
33
8
6
5
3 3 2
0.2
8
10.6 10.6
12.2
0
2
4
6
8
10
12
14
2012 2013 2014 2015E
Annual Impact Investments – Survey
Based (US$ billion)
Source (Multiple): JP Morgan GIIN, 2012 – “Perspectives on Progress: The Impact Investor Survey”, 2013 & 2014 – “Spotlight on the Market: The Impact Investor Survey”: Eyes
on the Horizon: The Impact Investor Survey
Despite skepticism, Impact Investing continues to
grow as an asset class globally
While the market size has yet not been fully quantified, the aggregate assets indicate that the market is
substantial, with significant potential for growth
AUM
Private Equity
Private Debt
Equity-like Debt
Public Debt
Public Equity
Real Assets
Pay-for-performance instruments
Others Deposits & Cash Equivalents
Total AUM by
Instrument (%)
100% = US$ 60 billion
Highlights

3. 3
Investrata Foundation for Social Entrepreneurship
A diverse set of factors are contributing to the growth
and global recognition of the asset class
Impact Investments Growth Drivers
Transfer of wealth from baby boomers to children
Recognition by world leaders that current trajectory is not sustainable
Evidence of scalable business models that create social and environmental value
Increasing confidence by governments and philanthropists
Broader considerations of risk in investment decisions
Growing commitment of asset-owners and corporations to deploy capital

4. 4
Investrata Foundation for Social Entrepreneurship
However, key challenges continue to hamper
mainstream adoption and expected hyper growth
Source (Multiple): The Impact Investor Survey by GIIN, JP Morgan, 2015, Charting the Course – a report by WEF, 2014, SocialVentures.
Lack of appropriate capital
Fund size is too small for investors
Illiquid Products / Difficulty in exit strategies
Shortage of quality investment opportunity
Lack of uniform definition & understanding
Difficulty of measuring social outcomes
Supplysidechallenges
Demandsidechallenges
Key Challenges
While impact investing has entered the mainstream mind-set, it is yet to become a part of the strategy,
operations and business culture of individuals and mainstream investment institutions
Under-developed intermediary market

5. 5
Investrata Foundation for Social Entrepreneurship
Meanwhile, a set of emerging technologies / trends show
promise and have grown exponentially in the past few years
Together they can effectively address many of the teething challenges and help propel the
mainstream adoption and growth of impact investing
A permission-less distributed database that maintains a
continuously growing list of transactional data records
hardened against tampering
Blockchain Technology
A mechanism that enables broad groups of investors to
fund startup companies and small businesses in return
for private securities. Can be equity-based, debt-based
or a hybrid. Usually facilitated via online platforms
Crowd Investing
Generally, refers to software whose source code is
published and made available to the public, enabling
anyone to copy, modify and redistribute the source
code without paying royalties or fees
Open Source
Also called collaborative consumption, it is peer-to-
peer-based sharing of access to goods and services
coordinated through community-based online services
Sharing Economy

6. 6
Investrata Foundation for Social Entrepreneurship
Impact Grid is a project to harness the potential of key
emerging trends & technologies for Impact Investing
The goal is to design a transparent, secure and decentralized exchange to connect impact investors, social
enterprises and others in the ecosystem and rapidly scale socio-environmental impact
Initially conceived to address our need for smart and transparent impact fund management,
the plan swiftly evolved towards building a platform to transform impact investing
A platform for
intermediaries to offer
and administer impact
investing instruments
(funds, bonds, etc)
A modern approach to
design and structure
new financial
instruments for impact
investing
A consensus based
mechanism to
systematize impact
measurement and
reporting
A meaningful way to
track, measure,
evaluate and report
social impact
A crowd investing
marketplace directly
connecting impact
investors and social
enterprises
Democratizing impact
investing. Making it
available to all. With an
active secondary
market
An open Impact
marketplace (going
beyond financials)
Fostering open socio-
environmental
innovation via peer-to-
peer collaboration /
asset exchange
Impact Grid – A blockchain-powered next gen platform for Impact Investing

7. 7
Investrata Foundation for Social Entrepreneurship
Impact Grid will bring together the existing industry actors
in a whole new way …… and add a host of new ones
The decentralized exchange will facilitate the design and creation of a new breed of financial instruments for
impact investing while allowing existing structures to scale
A transparent, secure and decentralized system will allow for better trust and governance while
seamlessly connecting a host of next-gen social entrepreneurs, impact investors and intermediaries
Source: WEF, 2014
Retail Clients
(<$100k)
Pension /
Sovereign Funds
Mass Affluent
($100K-$1MM)
Endowments /
Foundations
HNWIs
($1MM-$50MM)
Insurance
Companies
UHNWIs
($50MM-$100MM)
Hedge Funds /
Mutual Funds
Family Office
($100MM-$1B) Development
Finance Institute
(DFIs)Billionaires
(>$1B)
Capital Providers
Wealth
Advisors
Fund Managers
Investment
Funds
Financial
Intermediaries
Other Intermediaries
(Consultants, Lawyers,
Service Providers)
Depository
Institutions
Investment
Targets
Financial
Services
Fees
Financial
Services
Fees
Investment
Net Return
Investment
Gross Return
Direct Investment
Investment Return
Fees
Technical Assistance
Principal
& Interest
Debt
Capital
Principal & Interest
Debt Capital
Key
Tracks flow of capital
Tracks Relationship

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Investrata Foundation for Social Entrepreneurship
The project will have three phases, beginning with the
design for a smart platform to administer an impact fund
2016 2017
1. Smart Impact
Fund Platform
2. Crowd Investing /
Lending
One Simple Impact
Fund
#ImpInv
Marketplace
2018
3. Open Impact
Exchange
Peer-2-Peer
Exchange
An open source project, Impact Grid will allow anyone to extend, integrate and
deploy an impact exchange

9. 9
Investrata Foundation for Social Entrepreneurship
There exist some key dependencies including currently
evolving technology and access to necessary resources
Evolving
Technology
Its still early days for blockchain and related technology / protocol which
continues to evolve
• Uncoordinated - diverse group of developers
• Still broadly associated with Bitcoin and other cryptocurrencies
Regulation
The jury is still out with many governments and associated regulatory
bodies still trying to understand emerging trends and related technology.
• Blockchain , Crowd Investing, Peer-to-Peer lending
Capital and
Resources
Capital and resources to build a platform that will facilitate cross-border,
cross-functional ecosystem collaboration
• Regional expertise
• Patient Capital
Dependencies

10. 10
Investrata Foundation for Social Entrepreneurship
We are eager to hear from you and welcome individuals &
organisations to join us on this journey to advance social change
We try to do our part, practice what we preach and maintain a minimal physical and carbon footprint
Reach us
See a more detailed version of this
presentation:
https://goo.gl/7rsWEL
www.impactgrid.org
facebook.com/ImpactInvesting.in
@ImpactIN
info@investrata.org