 Hi everyone, I'm thrilled to be back at SOCAP, I last spoke here in 2012, many of you remember I said that the Rockefeller Foundation was preparing for its Centennial year at that time. Now it's 2014 we're just recovering from our Centennial year. At 101 years old we're not maybe quite old enough to remember the San Francisco earthquake of 1906, but our founder John D. Rockefeller gave more than $100,000 to help the city get back on its feet. But it was another businessman who stepped up to save the city more profoundly. When E.H. Harriman, the president of the Southern Pacific Railroad, heard the news about the earthquake. He led the first train west to assess how the railroad might assist in the recovery. When he arrived in Oakland, he immediately ordered tracks to be laid down into the most devastated parts of town to carry out people and debris. He met with local officials to kickstart the rebuilding process and sent telegrams across the country pleading for both private and public funds, and he gave $200,000 of his own fortune directly to the cause. The rich and poor have to be cared for alike, he wrote in a telegram home. I begin with this story not only because it's relevant obviously to last week's earthquake, which serves as a reminder of the shocks and stresses we continue to face, but also importantly because it reflects the kind of spirit that brings each of us here today. The belief that we all share with Harriman and that his friend John Muir put best when he wrote that Harriman cared for money as a tool like a locomotive or a ship. Indeed, private capital is a powerful tool for helping to solve humanity's greatest challenges, which is critical because philanthropy and government simply only have billions between us, yet private markets hold an estimated $210 trillion in capital, $80 trillion in pension and institutional funds alone. Seven years ago, a group of philanthropists and investors convened at the Rockefeller Foundation's Bellagio Center where they coined the term impact investing. They began to build the field to unlock greater amounts of private capital to do public good. We at Rockefeller have invested nearly 50 million over the last seven years into building the architecture and the infrastructure for impact investing. The launching and incubating of Jim, one of the global networks that's been so important, the development of reporting and performance standards like iris and gears. We've worked on trying to help align the policy environment and we've been helping to develop an evidence base of what works and what does not. We've also invested millions of our own PRI dollars to pioneer new investment structures and financial models and as you can see it takes all these elements of that ecosystem in order for this to work. Of course we haven't acted alone. The Bill and Melinda Gates Foundation and the Omidyar Network are creatively using PRIs and other financial structures in very exciting new ways. New funds beginning with the early pioneering work of Bridges Ventures and old line pension funds such as TIA-CREF are building greater opportunities for social and environmental impact in their investment funds. Financial institutions like JPMorgan Chase and Morgan Stanley have created impact investing units within their corporate structure while Bank of America, Merrill Lynch and Goldman Sachs have led on investing in and making the markets for social impact bonds. And under the hard work of the G8 Impact Investing Working Group under the leadership of Sir Ronald Cohen with the U.S. team led by Matt Bannock we will see an enormously important step to further systematize and globalize this movement. Thanks to all of these contributions and so many more impact investing has surely moved from the margins to the mainstream. Here are a few pieces of notable empirical evidence. JP Morgan and Jin's most recent survey of 125 major impact fund managers showed more than 46 billion dollars worth of impact investments under management, a 20% increase from 2013 to 14. 91% of those investors reported financial returns in line or above their expectations and 99% reported social or environmental impact above or in line with their expectations. At this summer's White House round table on impact investing more than 1.5 billion dollars in new capital for impact investing was committed by a group of investors spanning corporations, banks, foundations and individuals, the Omidia Network, the McKnight Foundation, the Rockefeller Brothers Fund and Prudential Financial among them. There is really tremendous progress in building out this ecosystem. All of you in this room who are involved should give yourselves a big round of applause for how far we've come. For me, this is that moment that field builders hope will come one day, the time when we can step back and see the field mature and come into its own. But just as innovation propelled the growth of impact investing a decade ago, we are going to need a continuing focus, I believe, on financial innovation if we're going to mobilize capital on the scale needed to stimulate markets for social purpose, which brings me to the reason I'm here today, not just to applaud the successes we have had together that we have created, but to challenge us to look to the future. Because if there's anyone who can create the next big innovation in the social capital markets, it is the people in this room. Let me tell you how our innovative finance team at Rockefeller has been working and what we've been imagining. While continuing, we hope, to help develop the field of impact investing, we see two new opportunities, distinct opportunities for expanding the tools for innovative finance, innovations in the kinds of financial mechanisms that provide new investment opportunities, and innovations in new models that align actors in new ways that leverage each partner's unique strengths while meeting their respective risk return expectations and needs. We believe that the goals of the next wave of the social financing innovation movement are three-fold. First, to bring in new sources of capital, often from new actors who are not already mobilizing capital for social or environmental purpose. Second, to increase the amount of the capital that's marked for those purposes from existing sources from current investors. And third, deploy existing capital in more effective and impactful ways. Take, for example, the social impact bonds. The original innovation of the SIB was its straightforward value proposition for each of the actors involved. It offered governments a way to fund proven preventive services without putting their tax dollars at risk. It offered nonprofits running a successful evidence-based intervention, a way of accessing new streams of revenue to scale their services. And it provided funds and private investors with more investment opportunities. Since Rockefeller and others started funding Social Finance UK to develop this very seedling of an innovation, it has now been adopted in more than a dozen countries and 19 states across the United States are in the process of either closing or exploring deals. In California, bonds have been launched focusing on recidivism, homelessness, and asthma. In many cases, including New York State's first SIB to reduce juvenile recidivism, we at the Rockefeller Foundation have been both an investor and a guarantor. But what has made the SIB such a breakthrough innovation has been its real capacity, its ability to be repositioned, to be repurposed, to fit different applications. For example, development impact bonds are almost identical to the structure of SIBs, except instead of the local or the national government repaying the investors, it's development finance institutions along with international donors and foundations. These can be used in the developing world to aid in the prevention of disease or increase in food security, for example, where greater support for evidence-based interventions would surely improve outcomes. SIBs and their many offshoots are just one example of innovations in the kinds of financial mechanisms that will provide new investment opportunities. There are also new kinds of mechanisms developing for evolving these land-based structures to the plight of the world's oceans, which are incredibly underfunded, even relative to other conservation and environmental efforts. More than 80% of fish stocks are at, near, or beyond, exploitation, threatening both marine ecosystems and the vast numbers of people around the world who depend on them for food and for livelihoods. Echo Asset Management Partners, in a collaboration with Oceana and Rare, funded by Bloomberg Philanthropies and Rockefeller, has now proposed new financial mechanisms that could dramatically accelerate the sustainability of the world's fisheries. Here's just one example. A microfinance or a media enterprise route to market vehicle, which will finance improvements to processing and distribution all along a value chain, including packaging and interim storage, to increase the sourcing of sustainable seafood in developing countries. This innovative structure also gives small fishers themselves an ownership stake and extra incentive to use sustainable practices. And it will help us achieve Rockefeller's goal of protecting ecosystems and building more inclusive economies. Those are some of the examples of new financial mechanisms, but we know there are so many others waiting to be developed. A second area we believe is really ripe for innovation is in the development and testing of new models for instruments that partner disparate interests or disparate actors to collaborate and share risk and increase leverage. One example is a new partnership that we and the overseas private investment cooperation have created to increase impact investments for solving development challenges. Here, Rockefeller will be the flexible capital partner, providing certain early stage risk capital that will allow OPIC to do certain high impact deals that their suite of investment products does not allow them to do now. In return, OPIC will bring to bear their expansive operational capacity and deal origination and conducting due diligence. The innovation we're piloting is whether this approach for structuring impact investing deals by deploying together risk capital from a philanthropy and a large source of capital from a DFI will attract and de-risk investment capital from commercial investors. This kind of model could then be applied to a wide variety of development challenges. But there are other models that are tailored to a more specific problem and I'll give you one example. In India, we're doing work to reduce rural poverty, which is exacerbated by the reality that large swaths of rural India are not yet connected to the electric grid and they will not be for a very, very long time. It is one of the major causes of significant rural poverty and you can see on this map, the overlay of rural poverty and the lack of electrification. Through our initiative, smart power for rural development. We're pursuing a model that would use a new mini grid technology powered by clean alternative energy sources. The innovation is bringing together three types of customers. An anchor tenant, telecommunication companies that need electricity to run their mobile phone towers and who are currently relying on expensive and environmentally polluting diesel. Small enterprises, such as carpenters or little agro businesses that need electricity to operate and grow and will pay for reliable electricity. And villagers who can only pay some tiny amount but they only need a tiny amount of electricity. And then their households stand to gain major economic and education benefits and the data are very strong there. Our hypothesis is that securing the telecom as a contractually guaranteed customer can finally make it profitable for smaller scale energy services companies to bring electricity to rural parts of the developing world where so many efforts have previously failed. While it's not yet a proven model that can attract commercial investors. Again, the Rockefeller Foundation is working to de-risk these investments for impact investors and prove that this model can be profitable and scaled first across India and then across the developing world. This could be truly transformative. But to solve challenges as complex as those facing humanity today, we often need the combination of innovations both models and in mechanisms. That's what we're learning through our work on resilience and I'm so thrilled that Socap has featured resilience as a track at this year's conference. In today's world, shocks, earthquakes, droughts, floods, pandemics, as well as slower burning stresses such as joblessness and civil unrest are coming faster and they're staying longer through our resilience work, which over the course of the last decade has funded or committed more than half a billion dollars. We've learned that investing in resilience not only mitigates the damage caused by disasters and stresses, but also creates benefits for people in good times as well. We call this the resilience dividend. And this graphic shows some of the benefits that we've seen already, including more job opportunities, lower operating risks for business, better coordination among government silos, and greater social cohesion. To help more cities and rural communities achieve the resilience dividend, we're pursuing innovations in both financial mechanisms and models. One is our 100 Resilience Cities Challenge, a hundred million dollar Rockefeller commitment, which focuses on building urban resilience in 100 cities worldwide. We've leveraged our 100 million and created a platform of resilience, goods, and services for the cities that are actually providing hundreds of millions of dollars more from entities as diverse as Palantir, the World Bank Group, Ushahidi, Sandia National Laboratories, and Swiss Re, with several others to be announced in the next few weeks. I encourage you to attend the session later if you're interested in learning more. In addition to changing the way entities approach financing resilience, we're also exploring mechanisms that could be developed to make this easier, including infrastructure exchanges or resilience impact bonds. Let me conclude as follows. We've seen the power and we've seen the results of using our risk capital to test or scale a new financial mechanism or model. We have also seen over and over again that the best ideas come from many people in many places. And so in our search for the next leapfrog advance in innovative finance, we are asking you, the entrepreneurial community, to think about some of the innovations you've come across in your work or a new idea that you would like to test. Tell us by using the SoCAP 2014 and Big Ideas hashtags, does it bring in more capital, private capital to the social sector? Does it focus on new ways to catalyze social entrepreneurship? Can it promote new and exciting types of partnerships? Or might it build resilience and more inclusive economies? So if you have one big idea or two or three, we want to hear it. Members of our innovative finance team will be monitoring the conversation, so will many others. And for many of those, we will follow up directly. But we'll also, if you would like, promote your ideas through our deep and expansive network of enterprises, innovators, and funders who share your passion for achieving social good. We are absolutely confident that with the collective wisdom of the SoCAP community, we can help transform and change today's new ideas into tomorrow's next great transformation. Thank you all.