Can market solutions play a role in resolving society’s problems?
Historically, it has been the State, foundations or NGOs who have helped the most vulnerable. The limitations of such players are, respectively, the lack of efficiency, restricted funding and the lack of transparency. Alvaro is convinced that business, particularly entrepreneurs, is the only structure that can combine all the factors enabling the large-scale resolution of social issues: efficiency and performance. In order to grow and have a greater social impact, these companies look for funding from sponsors, foundations and development agencies (IADB, EIB, etc.). Unfortunately, such resources are limited and are not sufficient to back their growth. According to Alvaro, the only solution is to seek funding from conventional investors, hence the creation of IGNIA. Nonetheless, institutional funds, even if limited, are very useful during a company’s start-up phase in that they reassure conventional investors. What type of investor? The advantage of being in the BoP segment is the abili
