A version of this post was written by Dennis Price and originally appeared on ImpactAlpha.
Knock, knock, knock. That’s the sound of impact investing at the door of mainstream financial markets after a banner year in which the impact investing marketplace grew to $60 billion, new firms entered the arena and important policies changes removed perceived barriers to impact investment practices.
Look for impact investing to accelerate in 2016. Here’s a roundup of marketplace predictions from investors and observers who have gazed into their crystal balls to start the new year.
1. The rise of frontier capital. Forbes’ Devin Thorpe says Paula Goldman, the Omidyar Network’s global lead for impact investing, sees a new $3 trillion market that investors seeking impact and financial returns will begin to fully leverage in 2016.
In 2016, entrepreneurs will further leverage smartphone technology to fuel innovation in emerging markets. Tweet This Quote
2. Much, much bigger and increasingly connected to the mainstream. Citing the rapid growth of the UK impact investing market, estimated at 30-40 percent per year, Rod Schwartz, CEO of ClearlySo asks: Can it continue to grow? His answer: yes!
Impact is becoming an integral consideration to every facet of our personal and professional lives. Tweet This Quote
3. Impact investing goes mainstream. Matthew Bishop, senior editor of The Economist Group, predicts that in 2016 we will see the impact of last year’s move of major players into impact investing.
Expect mainstream financial organizations to start implementing their promised commitments to grow impact investing. Tweet This Quote
4. Redefining philanthropy. The launch of the Chan-Zuckerberg Initiative was potentially “exponential” for impact investing, says Jonathan Greenblatt, National Director and CEO, the Anti-Defamation League. This year, he says, the new billionaire philanthropists will continue to redefine “how” to solve society’s problems.
Mark Zuckerberg intends to drive social change not with traditional charitable giving, but with impact investing. Tweet This Quote
5. Policy and technology to create opportunities for impact. Speaking to the Economic Times of India, Matt Bannick, managing partner of the Omidyar Network, says policy and technology create new opportunities for impact.
Good policy combined with technology creates opportunities for impact. Tweet This Quote
6. We must resist the temptation to settle. With rapid growth come tensions, says Jem Hudson, CEO of Caldy Group. Hudson calls for a bit of introspection. She asks: Will impact investing redefine finance as we know it, or will it be redefined by finance?
Will impact investing redefine finance as we know it, or will it be redefined by finance? Tweet This Quote
What are your predictions for impact investing in 2016?