Sunk costs and Catalytic capital: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Link with Contribution analysis page.)
 
(Create page - source - Big Society Capital - https://bigsocietycapital.com/latest/uk-catalytic-capital/)
 
Line 1: Line 1:
''Project appraisal''.
''Sustainability - investment - loan markets.''


Expenditure which has already taken place, or to which an organisation is already irrevocably committed, are sunk costs.
Catalytic capital means initial investment - or investor groups - that accept a potentially lower risk-adjusted returns in order to prove a concept and encourage further investment by others.


Sunk costs are irrelevant to project appraisal: "Sunk costs don't count."
"At its core, catalytic capital aims to unlock impact and draw in additional investment that would not otherwise be possible, resulting in the strengthening of communities and seeding and growing social innovation using multiple tools and approaches.  


A common mistake in project appraisal and analysis is the inclusion - in error - of sunk costs in the analysis.
Its usages... have included the use of subsidies, guarantees, blended finance structures, and concessionary risk-tolerant investment.
 
The flexibility of this capital and the differing interactions that stakeholders have with it is a key challenge in talking about catalytic capital..."
 
''(Source - Big Society Capital)''




== See also ==
== See also ==
* [[Contribution analysis]]
* [[Big Society Capital]]
* [[Project appraisal]]
* [[Blended finance]]
* [[Capital]]
* [[Concessionary]]
* [[ESG investment]]
* [[Green Bond Principles]]
* [[Guarantee]]
* [[Investment]]
* [[Investor]]
* [[Proof of concept]]
* [[Return]]
* [[Risk-adjusted return]]
* [[Risk tolerance]]
* [[Social Bond Principles]]
* [[Social impact bond]]
* [[Social inclusion bond]]
* [[Social investment]]
* [[Social loan]]
* [[Social Loan Principles]]
* [[Social project]]
* [[Subsidy]]
* [[Sustainability bond]]
* [[Sustainability Bond Guidelines]]
 
 
==External link==
*[https://bigsocietycapital.com/about-us/ Big Society Capital - about us]
 
[[Category:Financial_products_and_markets]]
 
[[Category:Financial_products_and_markets]]


[[Category:Corporate_finance]]
[[Category:Financial_products_and_markets]]

Revision as of 08:22, 30 November 2023

Sustainability - investment - loan markets.

Catalytic capital means initial investment - or investor groups - that accept a potentially lower risk-adjusted returns in order to prove a concept and encourage further investment by others.

"At its core, catalytic capital aims to unlock impact and draw in additional investment that would not otherwise be possible, resulting in the strengthening of communities and seeding and growing social innovation using multiple tools and approaches.

Its usages... have included the use of subsidies, guarantees, blended finance structures, and concessionary risk-tolerant investment.

The flexibility of this capital and the differing interactions that stakeholders have with it is a key challenge in talking about catalytic capital..."

(Source - Big Society Capital)


See also


External link

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=Sunk_costs&oldid=53769’