[IBR@Linkedin_special] Southeast Asia Impact Investing: Embarking with the Pioneers-Session Highlights from SOCAP 2024

Intro

IBR@LinkedIn brings you exclusive insights from SOCAP 2024, sharing key moments and learnings from the global impact investing community. This special feature highlights a groundbreaking session that put Southeast Asia in the spotlight, featuring candid conversations with industry leaders.

Impact Square was honored to host the first and only session dedicated to Asian markets at this year's SOCAP, bringing together pioneering voices in impact investment. Our panel facilitated a comprehensive dialogue on the region's emerging opportunities and challenges, with a particular focus on Southeast Asia's unique ecosystem.

Distinguished Panel of Regional Experts ???

The session brought together a distinguished panel of leaders:

• Patti Chu (Mana Impact, Managing Director)
• Jinkyung Choi (Korea Social Value and Solidarity Foundation, Senior Program Manager)
• Jaewon Jeong (Impact Square, Senior Manager)

Their diverse expertise provided a comprehensive perspective on the region’s evolving impact investment ecosystem.

Global Interest in Southeast Asian Markets????

The session attracted a wide audience, including::

• US and European impact investors exploring regional opportunities
• Asian stakeholders active in Southeast Asian markets
• Representatives from educational institutions and non-profit organizations
• Development finance institutions and philanthropic organizations

Key Discussion Highlights

Strategic Importance of Southeast Asia???

While the region might appear homogeneous from the outside, it encompasses 11 distinct countries with diverse languages and cultures, making impact investing more complex than initially apparent. The discussion explored how the region is balancing rapid economic growth with sustainable resource management, particularly in sectors such as palm oil production, where Indonesia and Malaysia account for 85% of global supply.

A key focus of the conversation was the critical importance of carefully considering exit paths, returns, and capital structures in this emerging impact investment market. The panel also highlighted how Korean government support has strengthened the development of the impact sector, particularly through fund-of-fund vehicles that enable social entrepreneurs to scale their operations effectively.

Innovation in Action??

Examples of successful impact investments illustrated the region’s potential:

• Alternō , which provides thermal energy storage systems, adapts solar technology to local needs, particularly in agriculture and heating.
• bTaskee , a home services platform, leverages digital technology to empower women by providing flexible work opportunities and community support.

These cases demonstrate the importance of tailoring solutions to local challenges, an approach that attracts both regional and global collaborations.?

The panel also highlighted opportunities in natural capital, including sustainable coconut farming and innovative seaweed farming cultivation projects, which offer environmental and economic benefits.

Building Sustainable Impact Ecosystems in SEA???

Key strategies for strengthening the region's impact investment landscape include:

• Strategic collaboration between public and private sectors to unlock funding opportunities
• Creative financing approaches that combine grants, equity, and other instruments to fill working capital gaps

"When development organizations and private investors work together, we can create more accessible financing opportunities that reduce investment risk while maximizing social impact," said Jaewon Jeong.?

One such initiative is Impact Square's Impact Challenge at SEA, a program sponsored by KOICA (Korea International Cooperation Agency) to foster scalable impact startup solutions tailored to Southeast Asia's unique environmental and social challenges.

From Vision to Action: The Path Ahead for SEA Impact Investing????

The session reinforced Southeast Asia's position as a crucial frontier for impact investing, with three critical key takeaways:

1. The region presents immense untapped potential for impact investors.
2. Success depends on implementing appropriate technology and financial solutions tailored to local contexts.
3. While rapid growth continues, significant social gaps remain, creating compelling opportunities for impact-focused solutions.

Impact Square remains committed to transforming these insights into action. With Impact Challenge at SEA as a key platform, we welcome partnerships that drive diverse global impact projects and tackle Asia's most pressing challenges.??

We look forward to continuing these important conversations and building bridges between global investors and regional opportunities.

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