Gaps in the Impact Investment Ecosystem: Comparing the markets of Germany and the UK

Impact Investment and Social Finance gain more and more international attention. Local ecosystems are forming share, national legislation and other factors highly influencing this development. Comparing those ecosystems can give valuable insights, what countries could learn from each other and to what extend national solutions are needed. This study is a first comparison between the UK and German impact investing markets. It is based on a qualitative research method, namely explorative and semi-structured interviews as well as two focus groups. The status quo of both countries as well as the challenges found in the German market are then used to draw conclusions on how the German market could benefit from the UK's development. Results are clustered around demand, intermediaries and supply as well as national context, regulatory framework, impact and leadership. This study concludes to what extent the UK market can act as a role model and which challenges require a 'German solution' or can be met by adapting actions taken in the UK.

Laura Kromminga was born in 1989 in Berlin. She dedicated both her bachelor and master thesis to the topic of social entrepreneurship and impact investment. Previously working for the donation platform betterplace.org, the author witnessed the struggle of social organisations to raise adequate finance. Currently, she is working for the Hybrid Finance Initiative at Ashoka Europe, writing case studies and articles about Social Finance.