Roots of Impact

What Roots of Impact does

Roots of Impact is a Frankfurt-based advisory and fund management firm founded in 2015 that pioneered Impact-Linked Finance (ILF), a financing approach that ties financial rewards for market-based organizations to the achievement of predefined social outcomes. The firm coined the term "Impact-Linked Finance" alongside Boston Consulting Group in 2019 and developed a portfolio of proprietary instruments, most notably SIINC (Social Impact Incentives, co-created with the Swiss Agency for Development and Cooperation in 2016) and SAFI (Simple Agreement for Future Impact, launched in 2025). It also co-established the Impact-Linked Finance Fund (ILFF) with iGravity as a Dutch foundation serving as a plug-and-play implementation partner for ILF fund managers, and it operates the ILF Community platform offering courses, webinars, and advisory services.

The firm's revenue is generated through three service lines: (1) fund management fees from managed facilities such as the ILFF and thematic Impact-Linked Funds spanning education, gender-inclusive fintech, and WASH; (2) advisory mandates with impact investors, philanthropists, and catalytic funders on tailored capital strategies; and (3) financing-solution design engagements that embed impact by design into blended-finance structures. Customers include institutional impact investors and DFIs (FMO, KfW DEG, DFC, IDB, SDC, Jacobs Foundation), philanthropic foundations, and social enterprises across Latin America, Sub-Saharan Africa, and Southeast Asia, with 63 ILF transactions closed cumulatively by year-end 2024.

The technology stack is built around the ILF methodology, proprietary legal instruments (SIINC, SAFI), and a forthcoming web-based ILF Transaction Hub targeted for 2026 launch to streamline end-to-end ILF transaction implementation. Roots of Impact secured its first external financing round in June 2024 (seven-figure, undisclosed), with investors including BMH, Delta Fund, ESIIF, and SDC, earmarked for scaling solutions and platform development. The firm does not disclose revenue and operates with a lean team of 1–10 employees, leveraging an ecosystem of 40+ partners for field-building, co-investing, and distribution rather than scaling internal headcount.

Name

Roots of Impact

Legal name

Roots of Impact GmbH

Website

https://roots-of-impact.org

Company type

Private

Founded year

2015

Operating status

Operating

Headcount range

1–10 employees

Short description

Roots of Impact is a Frankfurt-based advisory and fund management firm that pioneered Impact-Linked Finance, designing outcome-linked financing instruments and managing impact funds for institutional investors, DFIs, philanthropists, and social enterprises globally.

Ownership category

akta.pro rank

Product category

Impact Finance Advisory

NAICS

Miscellaneous Intermediation (52391)

SIC

Investment Advice (6282)

akta.pro primary industry

Impact Investing (Intentional, Measurable Social/Environmental Outcomes) (FSAAALAC)

akta.pro secondary industries

Impact Investing & Social Finance (Funds, CDFIs, Microfinance) (BPAGALAA), ESG Integration / Responsible Investment Funds (Broad ESG) (FSANAJAL), Impact Investment & Social Finance Programs (BPADAOAJ)

Keywords

• Impact-linked finance
• Blended finance advisory
• Social impact incentives
• Impact fund management
• Innovative finance consulting

Headquarters

HQ city

Frankfurt

HQ country

Germany

HQ region

Europe

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Fund Management Fees: Managing high-impact funds and facilities that mobilize resources, align incentives, and accelerate impact across diverse sectors, topics, and geographies. Revenue is generated through management fees from funds under administration.
2. Advisory Services: Providing tailored capital strategy advisory to investors, philanthropists, and catalytic funders to design and implement strategies that maximize social and environmental outcomes.
3. Financing Solution Design: Designing effective financing solutions that incorporate impact by design and drive their market adoption for clients and partners.
4. SAFI Services: Providing SAFI coaching, access to tools and templates, training, and expert mentoring for investors, intermediaries, and entrepreneurs engaging with Impact-Linked Finance instruments.

Go-to-market motion1 record

Distribution channels6 records

Marketing channels8 records

Core offering

Roots of Impact is a specialized advisory and fund management firm dedicated to Impact-Linked Finance (ILF), a framework that links financial rewards for market-based organizations to the achievement of positive social outcomes. The firm designs fit-for-purpose financing solutions, manages high-impact funds and facilities, and advises impact investors, philanthropists, and catalytic funders on tailored capital strategies that embed impact creation from the outset. Its proprietary instruments include SIINC (Social Impact Incentives) co-created with SDC and SAFI (Simple Agreement for Future Impact), supported by an Impact-Linked Finance Fund and an upcoming ILF Transaction Hub digital platform.

Product overview

Roots of Impact is an advisory and fund management firm that pioneered Impact-Linked Finance (ILF) — a financial framework that links financial rewards for market-based organizations to the achievement of predefined social outcomes. The core offering is the ILF framework itself, supplemented by the SIINC (Social Impact Incentives) instrument and the newer SAFI (Simple Agreement for Future Impact) instrument. Roots of Impact also operates the Impact-Linked Finance Fund (ILFF) as an implementation vehicle, supports practitioners through ILF Community, ILF Expert Services, and ILF Advisory, and is developing an ILF Transaction Hub platform. Education and research are delivered through the Initiative for Blended Finance (IBF) and Social Finance Academy (SFA). The company does not offer a software product with integrations, APIs, or AI capabilities.

Differentiator

Problem solved

Functional benefit

Brands

• SIINC (Social Impact Incentives): An Impact-Linked Finance instrument that rewards enterprises raising investment with payments for achieving predefined social outcomes. Co-created by Roots of Impact and SDC.
• SAFI (Simple Agreement for Future Impact)

Products and services

• Impact-Linked Finance (ILF) Core practice and framework linking financial rewards for market-based organizations to the achievement of positive social outcomes; operates at the intersection of blended finance, impact investing, and results-based finance.
• Social Impact Incentives (SIINC) Impact-Linked Finance instrument that rewards enterprises raising investment with payments for achieving predefined social outcomes; leverages public or philanthropic funds to catalyze private investment in underserved markets.
• Simple Agreement for Future Impact (SAFI) Next-generation Impact-Linked Finance instrument providing highly flexible, impact-linked growth capital that empowers entrepreneurs to drive meaningful change, with impact incentives rewarding enterprises with better terms for better impact.
• Impact-Linked Finance Fund (ILFF) Dutch foundation established by Roots of Impact and iGravity that acts as a plug-and-play implementation partner for Impact-Linked Fund managers, pooling know-how and activities for implementing scalable ILF programs.
• ILF Community Community platform providing practical knowledge through targeted self-study courses, engaging webinars, curated readings, and inspiring case studies for ILF practitioners.
• ILF Expert Services Dedicated expert support for ILF fund, program and transaction management for practitioners seeking implementation support.
• ILF Advisory Advisory services supporting practitioners on the first steps of their individual ILF journey, from product and program design to feasibility studies to specialized advice for emerging practitioners.
• ILF Transaction Hub Web-based platform (under development, planned 2026 launch) to give ILF implementers and outcome funders streamlined end-to-end implementation of ILF transactions, providing transaction efficiencies and quality gains.
• Initiative for Blended Finance (IBF) Global competence center for the effective application of blended and innovative finance, established by Roots of Impact to provide cutting-edge research and education.
• Social Finance Academy (SFA) Initiative that guides entrepreneurs on their impact journeys by empowering them to access impact-aligned investment and professionalize their impact management.

Quantifiable outcome

• 63 Impact-Linked Finance transactions closed as of year-end 2024
• +2 more outcomes

Named customers7 records

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature5 records

Partnerships

34 partnerships are on record, tiered core, major and minor.

• iGravitycoreStrategic or Co-development PartnerStrategic partner with whom Roots of Impact established the Impact-Linked Finance Fund (ILFF), a Dutch foundation acting as plug-and-play implementation partner for Impact-Linked Fund managers.
• Boston Consulting Group (BCG)coreStrategic or Co-development PartnerCo-developed the concept paper that coined the term 'Impact-Linked Finance' and defined the Design Principles for ILF in 2019.
• AccionmajorStrategic or Co-development PartnerFund management and co-investing partner collaborating in the Impact-Linked Finance ecosystem.
• FMOmajorStrategic or Co-development PartnerDutch development bank and fund management partner in Impact-Linked Finance initiatives.
• IDB (Inter-American Development Bank)majorStrategic or Co-development PartnerMultilateral development bank partner in fund management and co-investing for ILF transactions.
• KfW DEGmajorStrategic or Co-development PartnerGerman development finance institution partner in Impact-Linked Finance fund management.
• DFC (U.S. International Development Finance Corporation)majorStrategic or Co-development PartnerU.S. development finance corporation partner in ILF fund management and co-investing.
• Aqua for AllmajorStrategic or Co-development PartnerPartner in the Impact-Linked Fund for WASH program, implementing SIINC for water, sanitation and hygiene enterprises.
• Jacobs FoundationmajorStrategic or Co-development PartnerFoundation partner in Impact-Linked Finance fund management and social innovation financing.
• Root CapitalmajorStrategic or Co-development PartnerAgricultural impact investor that was first to apply SIINC at portfolio level, collaborating on ILF transactions in agricultural SME lending.
• AcumenmajorStrategic or Co-development PartnerImpact investment pioneer and field building partner in the ILF community and market development.
• C3 (Catalytic Capital Consortium)majorStrategic or Co-development PartnerField building partner in innovation for Impact-Linked Finance, providing research grants.
• ILF CollaborativecoreStrategic or Co-development PartnerCore collaborative body in the Impact-Linked Finance ecosystem working to advance the field globally.
• Oxford Said Business SchoolmajorStrategic or Co-development PartnerAcademic partner delivering the Oxford Impact Finance Innovations Programme and Impact Measurement Programme where ILF is taught.
• World Economic Forum (WEF)majorStrategic or Co-development PartnerGlobal platform partner featuring Impact-Linked Finance in reports on innovative finance and tradeable impact frameworks.
• Grant ThorntonmajorStrategic or Co-development PartnerProfessional services partner that collaborated with Roots of Impact to develop a freely available SAFI model contract.
• DalbergmajorStrategic or Co-development PartnerAdvisory, research and education partner specializing in impact measurement and innovative finance.
• ConvergencemajorStrategic or Co-development PartnerBlended finance knowledge partner collaborating on the Impact Investment & Blended Finance (IIBF) program.
• VilCapminorStrategic or Co-development PartnerVenture capital partner in fund management and co-investing ecosystem.
• ADAminorStrategic or Co-development PartnerDevelopment agency partner in Impact-Linked Finance initiatives.
• 60decibelsminorStrategic or Co-development PartnerImpact measurement partner providing evidence and impact analytics for ILF transactions.
• New VenturesminorStrategic or Co-development PartnerImpact investment partner in fund management and co-investing.
• LeonardominorStrategic or Co-development PartnerImpact-focused investment partner in the fund management ecosystem.
• SeedstarsminorStrategic or Co-development PartnerVenture capital partner for startups and early-stage impact enterprises.
• IFI (Initiative for Blended Finance)majorStrategic or Co-development PartnerField building partner operating as a global competence center for effective application of blended and innovative finance.
• Impact EuropeminorStrategic or Co-development PartnerEuropean impact finance network partner in field building and market development.
• LatimpactominorStrategic or Co-development PartnerLatin American impact network partner hosting conferences and advancing impact finance in the region.
• CSP (Center for Sustainable Organizations)majorStrategic or Co-development PartnerResearch partner collaborating on impact management and measurement frameworks, hosting joint webinars.
• University of St. GallenmajorStrategic or Co-development PartnerAcademic partner in research and education for innovative finance.
• FASEminorStrategic or Co-development PartnerResearch and advisory partner in the impact finance ecosystem.
• 2X GlobalminorStrategic or Co-development PartnerGender lens investing partner in the impact finance ecosystem.
• AVPAminorStrategic or Co-development PartnerAfrican venture platform partner in impact finance field building.
• LISI (Legal Innovation for Social Impact)minorStrategic or Co-development PartnerLegal innovation network partner supporting ILF structuring and legal frameworks.
• RPCKminorStrategic or Co-development PartnerAdvisory partner in research and education for impact finance.

Scale indicators5 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Finance in Motion: Impact-focused asset manager that structures and manages blended finance and impact investment funds for DFIs and the EU. Direct peer because Finance in Motion operates fund management mandates for the same outcome-funder base as Roots of Impact.
• Bridges Fund Management: Specialist impact investment fund manager focused on outcomes-based strategies in the UK and globally. Direct peer because Bridges designs and manages impact-linked investment vehicles that align financial returns with measurable social outcomes, mirroring the SIINC/SAFI model.
• BlueOrchard Finance: Leading impact investment manager specializing in microfinance, SME finance, and innovative finance structures. Direct peer because BlueOrchard manages outcome-linked investment vehicles and works with the same institutional DFI client base.
• Convergence: Global network for blended finance that curates, advises on, and disseminates knowledge on blended and innovative finance transactions. Direct peer because Convergence and Roots of Impact both serve as connective infrastructure between DFIs and private investors, and are listed as a partner.
• iGravity: Impact investment advisory and innovation studio that co-established the Impact-Linked Finance Fund (ILFF) with Roots of Impact. Direct peer because iGravity operates in the same ILF advisory space and shares strategic execution responsibilities.
• ClearlySo: European impact investment advisory and intermediary that connects impact enterprises with investors. Direct peer because ClearlySo supports the origination and structuring of impact-linked investments across Europe and emerging markets, comparable in scale and methodology.

Broad incumbents

• Acumen: Pioneering impact investment firm focused on building entrepreneurial approaches to poverty. Direct peer because Acumen designs and deploys impact-linked instruments, manages patient capital funds, and is a confirmed ILF field-building partner of Roots of Impact.
• Boston Consulting Group (BCG): Global management consulting firm that co-developed the 'Impact-Linked Finance' concept paper with Roots of Impact in 2019. Broad incumbent because BCG advises large institutional and DFI clients on innovative finance and could internalize ILF capabilities.
• Dalberg Advisors: Global advisory firm specializing in impact measurement, innovative finance, and development strategy. Direct peer because Dalberg advises the same DFI and foundation clients on impact-linked financing and is a partner of Roots of Impact.

Emerging players

• Ceniarth: Single-family office focused exclusively on impact investing and innovative finance instruments in emerging markets. Emerging player because Ceniarth funds and structures outcome-aligned deals that overlap with the SIINC/SAFI use cases Roots of Impact supports.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights6 records

Customer concentration

• YouTubeyoutube.com/@Roots.of.Impact
• LinkedInlinkedin.com/company/roots-of-impact

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds1 record

Investors4 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Roots of Impact