Alongside risk, the lack of liquidity of private investments is one of the key constraints in the impact space. Investors allocating to impact opportunities using Drashta's de-risking tool will gain access to liquidity via a regulated exchange, enabling them to exit their position independently of the underlying investment achieving a liquidity event.
Liquidity as Risk Mitigation
Beyond the additional flexibility it provides, access to liquidity also further de-risks investment allocations. Rather than having to hold investments until the underlying investment experiences a liquidity event with few to no options to exit prior, being able to access liquidity and adjust exposure along the way further mitigates risk.
Liquidity as an Impact Multiplier
Capital allocations to impactful investments create impact only at the moment the allocation is made. Aside from the active involvement of investors, whether the capital is kept in for 1 year or 10 years, the impact of the initial allocation is the same.
Access to liquidity empowers catalytic investors to multiply the impact of their capital. For example, being able to access liquidity on average 6-12 months after helping close a funding round can enable investors to fund 5-10 different impact opportunities over a 5 year term compared to funding only a single opportunity through the conventional allocation approach.