In the aftermath of Finextra Research’s SustainableFinanceLive event, Richard Peers from ResponsibleRisk engaged in a discussion with Damian Payiatakis, head of impact investing at Barclays, and David Newman, co-founder of fintech firm Delio, to explore their newly launched impact investing platform, Impact Agora.
Barclays, as a key sponsor of Impact Agora, partnered with Delio to create this platform as an industry initiative aimed at connecting investors and intermediaries with entrepreneurs dedicated to impact investing. This initiative addresses a significant market gap, enabling these two driven groups to interact and transact more effectively.
The vision for Impact Agora is to leverage shared technology and foster a community of member institutions, thereby minimizing investment barriers and enhancing the visibility of impact investing intermediaries as well as entrepreneurs.
Payiatakis emphasized Barclays’ commitment to its clients, including single and multi-family offices and high-net-worth individuals, who are increasingly interested in impact investing. He recognized the challenges in identifying high-quality deals, particularly in the early stages of investment. He stated, “Connecting interested parties is essential, and we’re dedicated to actively contributing to market growth rather than merely discussing the challenges.”
Currently, Barclays plays three pivotal roles within the initiative:
1. Identifying quality deal-flow through the marketplace.
2. Offering patient capital to support the launch of the Impact Agora platform.
3. Utilizing the bank’s extensive connections to attract participants from the existing impact investing community and broader sectors, including wealth management and corporate venture capital.
Newman noted that, while Delio focuses on providing technological solutions to link private capital with investors, the collaboration with Barclays involved designing a robust digital impact investment proposition. Delio engages with a diverse network of partners, ranging from Coutts and UBS to family offices and angel networks, all eager to enhance their impact investing efforts.
For example, a fund manager recently launched a consumer goods-focused venture capital fund and discovered the Impact Agora platform. Impressed by its offerings, the fund showcased its initiative, leading to a connection with an interested investor. This interaction initiated due diligence processes, resulting in a significant investment from the investor into the fund.
The platform’s value extends beyond simply matching investment goals; Delio’s technology facilitates interoperability between private investors’ systems and Impact Agora, creating a streamlined central marketplace. Newman highlighted the significance of data interoperability, stating, “It may not sound glamorous, but it represents a pivotal area. For instance, our technology enables Conduit Club to leverage their angel network effectively on the platform while demonstrating their impact.”
From a technical perspective, Newman emphasized the challenge of ensuring well-governed data sharing on each investment, allowing for ongoing reporting and metrics. This approach enables participants to operate independently while being part of a larger ecosystem.
Addressing the limitations of a one-size-fits-all framework, Newman advocated for customizable interfaces that allow firms to access pertinent data. He argued against a prescriptive approach, noting that individual motivations and investment criteria may differ significantly, even within the same family.
“Standardization can be counterproductive,” he explained. “Allowing data presentation flexibility respects personal investment objectives and motivations.”
Language and terminology have also been central to the platform’s success, fostering a mutual understanding among participants regarding their goals and data presentation. Consistent and manageable reporting is crucial for aggregating outcomes across funds or communities.
As Payiatakis concluded, “Impact Agora thrives on community and network engagement. Expanding our network by attracting more investors and intermediaries who meet our quality criteria will benefit everyone involved and is vital for ongoing conversations.”