#Dealflow: Follow the Money

HTC to invest $10 million in VR-for-good startups. Virtual reality “for good” has been having its moment ever since several 360-degree films stirred empathy for Syrian refugees. The Taiwanese smartphone manufacturer launched a $10 million impact fund to invest in virtual reality startups with storytelling projects around the Global Goals for sustainable development.

Soros stakes up to $50 million on Humanity Ventures. The hedge fund billionaire is seeking to galvanize private sector finance and innovation as an alternative to humanitarian aid for vulnerable, transient populations. The education and healthcare-focused partnership with Mastercard is part of Soros’ $500 million pledge to reshape the global response to refugees, whose numbers are expected to swell under the threat of economic strain and climate change. Mastercard will develop products and services that can reach refugees on the move.

Wanted: Innovative designs for climate-resilient cities. Grantmakers and investors are putting out the call for urban climate adaptation ideas. Apply by March 15 for $250,000 in grants from Climate Ventures 2.0 for 10 innovations that combat water scarcity, stormwater runoff and agriculture vulnerabilities. Some of the startups will pilot their projects through the Rockefeller Foundation’s network of “100 Resilient Cities.” Rockefeller is backing another competition specifically for San Francisco in April. Bay Area: Resilient by Design will distribute $4.6 million in grants to support 10 ideas that address the threat of rising sea levels, storms, flooding and earthquakes.

#Signals: Ahead of the Curve

Institutional investors are differentiating themselves with ESG. So says stock market research firm MSCI, which has identified 2017 trends as investors look for non-financial data and long-term performance. Rising risks mean governance factors are key in pricing bonds. Utilities may spin off renewables to attract low-carbon investors. A flurry of new products from major asset managers also suggests investors are looking at ESG signals in assets classes other than public equities, including corporate bonds and real estate. PIMCO, for example, is offering a new global bond ESG fund, while Northern Trust Asset Management is rolling out a sustainable real estate index.

Employee-owned businesses drive good jobs and fair wages. Co-operatives hold promise for a “human economy,” says Enrich Sahan, head of Oxfam’s private sector team. The report generated headlines for its finding that the world’s eight wealthiest men hold as much wealth as the bottom half of the global population. Employee-owned businesses are a way to reverse such concentration, Sahan argues, and need greater access to capital. “Government has a key role to play in driving a vision of an economy with a majority of such enterprises; not confining them to the social economy.”

Impact-first foundations are expanding their investment strategies. A new series in Stanford Social Innovation Review highlights the impact investment strategies of major U.S. foundations. Carol Larson writes the Packard Foundation is “moving upstream” to help launch more climate-action financing vehicles, such as the US-India Clean Energy Finance initiative, and helping financing matchmakers like Sunfunder establish a track record. Rip Rapson explains Kresge Foundation’s commitment of $350 million – 10 percent of its endowment – to investments like Detroit Home Mortgage, which is reviving neighborhoods by helping homebuyers get loans. “When innovative foundations assume more risk so that other investors can assume less, they increase the capacity for impact,” writes Matt Onek of Mission Investors Exchange.

#2030: Long-Termism

Battery storage could grow 250-fold by 2030, reshaping global energy grids. The price of lithium-ion batteries has fallen below $350 per kilowatt-hour, down by more than two-thirds since 2010, and could fall below $100 per kWh within a decade. The stunning drop means global battery storage capacity could rise from one gigawatt today to 250 gigawatts by 2030, according to the International Renewable Energy Agency. Reliable, affordable battery storage makes solar and wind viable as baseload electricity sources.

The report forecasts that renewables will double to 36 percent of the global energy mix in 2030. European grid operators already get 30 to 70 percent of their power from “variable” sources. Some experts argue that shifting solar and wind subsidies to storage technologies would drive even faster growth.

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