The Real First Movers: Why Catalytic Capital Must Actually Take Risks

Impact investors love the term “catalytic capital”—but how many actually take first-mover risk? Too often, capital that is labeled “catalytic” still waits on the sidelines, requiring validation from mainstream investors before deploying funds. This hesitancy defeats the purpose of catalytic capital, which should be first-in, de-risking investment opportunities for others and unlocking capital for historically excluded fund managers and communities.

But here’s the good news: Bold investors are already proving that first-mover risk pays off. In this session, we’ll highlight funders who are actually shifting power and capital to underrepresented allocators and entrepreneurs—those best positioned to direct resources into their own communities. Boston Impact Initiative’s First Mover Fund will share how it absorbs early-stage risk to seed investable funds led by BIPOC and underrepresented fund managers, unlocking follow-on capital that may otherwise never reach them. Alexander Sterling of Turtle Island Community Capital, will share how early catalytic investment transformed his Native CDFI, allowing it to scale and attract both partnerships and funding, and Benjamin Vann, founder of Impact Ventures, who will provide an honest, behind-the-scenes look at his catalytic capital fundraising journey, highlighting both the challenges and the game-changing impact of investors willing to move first.

We will focus not just about the barriers—but on the solutions that are working. Panelists will discuss blended finance strategies that de-risk investment, share real-world success stories, and provide a roadmap for how investors can confidently take the first leap—knowing that their capital will catalyze lasting change.

Takeaways for the Audience:
✔ A clear framework for deploying truly catalytic capital—one that moves first instead of waiting for safety.
✔ Practical investment structures for de-risking capital in underrepresented communities.
✔ Case studies of funds that successfully leveraged First Mover investment to unlock millions more in follow-on capital.
✔ A challenge to investors and funders: If you say you’re catalytic, are you actually moving first? If not, what’s stopping you?
✔ Inspiration and confidence to deploy more bold, risk-taking capital—knowing that the most transformative investments come from stepping up first.