Event Recap

Impact Investing in Healthcare

Impact investing in healthcare can drive social change, especially by addressing critical health challenges, particularly in emerging markets. Investments are directed towards innovative healthcare solutions that serve underserved populations, often in regions with limited access to quality healthcare.

Financing the Healthcare Innovation Gap

There is a financing gap for health innovation, which private capital can help bridge. In Africa alone, the health financing gap is estimated at $240 billion annually, and only 1.6% of the $500 billion social impact investment market is spent on the African healthcare market. Similar financing gaps exist in other regions as well. The gap is particularly pronounced in digital health, women’s health, and medical technologies. Blended finance mechanisms, combining public and private funds, may reduce risk and attract more private sector investment into health innovations.

Target Areas for Investment

• Women’s health, particularly maternal and reproductive health, is a key area for impact investments due to its importance for societal well-being. Digital health and telemedicine are critical tools for improving access to healthcare, especially in remote and underserved regions. Investments in medical technologies that can be scaled globally to provide more affordable care have high impact potential.

Importance of Impact Measurement

• Tracking and measuring the impact of healthcare investments is essential. Health indicators need to be closely monitored to ensure that investments are making a tangible difference in improving health outcomes. There is a need for robust metrics and frameworks to assess both social and financial returns on investment.

Emerging Market Opportunities

• Emerging markets represent significant opportunities for impact investors, especially in healthcare, due to large unmet needs and growing populations. Collaboration with local governments and multilateral organizations is crucial in ensuring the success and sustainability of health innovations.

Legal structures and jurisdictions

• The legal structure and jurisdiction of the investee companies play a critical role in determining their capacity to attract impact investment. A well-chosen legal structure can enhance flexibility, governance, and scalability, which are crucial for successfully addressing global health challenges. Additionally, selecting the right jurisdiction can ensure that investees benefit from favourable regulatory environments and legal frameworks that align with their mission and impact goals.  When selecting a legal structure and jurisdiction, it is critical to consider the needs of the investors one is targeting, which differ for different types of investors.

Innovation and Scaling

• The ability to scale health innovations is key. Investments should focus on scalable solutions that can be replicated across different regions, particularly in low- and middle-income countries.

Pandemic’s Role in Shaping the Future

• The COVID-19 pandemic highlighted the need for innovation in healthcare delivery and financing. The pandemic has created a renewed focus on strengthening healthcare systems, making this an opportune time for impact investing in the sector.  The crisis also showed that while it is not important, from a health outcomes point of view, where the technology is initially created, it is critical to consider distribution challenges and local manufacturing in pandemic preparedness plans. 

Impact investing is increasingly recognized as a powerful tool for addressing global health challenges. By focusing on innovative solutions, leveraging blended finance, and improving impact measurement, stakeholders can help bridge the healthcare gap in emerging markets. Women's health, digital health, and scalable medical technologies are the key areas with significant potential for both financial returns and positive social impact.

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Invitation

The Canada Forum for Impact Investment and Development (CAFIID) is pleased to host a dynamic webinar focusing on the evolving landscape of global health impact investing. As the world transitions from crisis management to building more resilient healthcare infrastructures, impact investors are uniquely positioned to catalyze transformative solutions. This webinar will bring together leaders in the healthcare impact investment space to share their experiences, insights, and strategies for navigating this critical juncture.

Panelists:

James Fraser, CEO, Madiro
Madiro is dedicated to supporting healthcare innovation and entrepreneurship in African markets, addressing intractable challenges in global health and humanitarian services. James will discuss how Madiro is leveraging impact investments to foster scalable healthcare solutions in underserved regions.

Matteo Gilliotti, Investment Director, New Ventures Capital
NVC is an impact fund manager that designs and manages impact-related assets. NVC connects impact-driven entrepreneurs with mission-oriented investors, focusing on solutions that drive social and environmental well-being. Matteo will provide insights into NVC’s approach to investing in health technologies and supporting disruptive business models in the healthcare sector.

Annie Theriault, Managing Partner, Cross-Border Impact Ventures
Cross-Border Impact Ventures is an impact venture capital firm dedicated to revolutionizing healthcare investing. Annie will share how Cross-Border Impact Ventures is breaking down barriers to healthcare access by investing in health technologies that transcend gender, age, race, and geographic boundaries.

Moderator:

Leeat Gellis, Director - Social Finance, Grand Challenges Canada
As one of Canada’s largest impact-first investors with a mission to support bold ideas with big impact, Grand Challenges Canada has been instrumental in funding healthcare innovations in low- and middle-income countries. Leeat will guide the conversation, drawing on GCC’s experience managing a diverse portfolio of health-focused innovations.