Commentary: Improving How We Tackle Global Challenges by Funding the Projects That Matter

Many promising solutions addressing climate change, social inequality, and global health challenges already exist, but they often struggle to secure the necessary funding to scale and succeed. A significant reason is the current preference among investors for “cutting-edge” sectors, especially artificial intelligence (AI) and other deep tech fields, where returns can be realized more quickly and visibly. According to data platform Crunchbase, nearly one-third of global venture funding in 2024 was directed toward AI-related companies, making it the most heavily funded sector. In contrast, innovations in climate, social, and health areas often remain underfunded and under-recognized, despite their potential for broad systemic impact [para. 1][para. 2][para. 3].

One challenge for such impact-driven sectors is the slow pace at which they produce measurable results. For example, educational technology platforms can take years to demonstrate outcomes, which are influenced by external variables like job placement rates and economic trends. Moreover, scaling these innovations requires navigating complex regulatory environments and addressing the diverse needs of different demographics. Traditional funders typically seek returns within three to five years, making it difficult for mission-driven ventures—such as social enterprises and early-stage startups—to compete for financing [para. 4][para. 5].

A concrete example is Voibook, a Guangzhou-based startup offering barrier-free communication solutions for the hearing-impaired. With over 1.5 billion people globally—including 28 million in China—affected by hearing loss, communication barriers can severely restrict access to education, jobs, and essential services. Voibook, led by CEO Shi Chenchuan, collaborates with various institutions and uses technology for real-time speech translation, currently supporting over a million individuals in China and abroad. Early support from initiatives like the DBS Foundation has been critical. However, for Voibook and similar businesses to expand and deepen their impact, sustained resources and support are crucial [para. 6][para. 7][para. 8].

There are encouraging signs of increased investment interest in impact-driven solutions. The Global Impact Investing Network projects growth in impact funding, from $502 billion at the end of 2018 to an estimated $1.57 trillion by the end of 2024. China is also increasing its impact-driven investments; for example, its green bond market was valued at roughly $270 billion in 2021, ranking second globally. A factor accelerating this trend is the rise of “catalytic capital” that takes on more early-stage risk and invests patiently in high-impact projects [para. 9][para. 10].

To further support and amplify these solutions, platforms like Co-Axis have emerged. Founded by Temasek Trust with partners like DBS Foundation and UBS Optimus Foundation, Co-Axis is a digital marketplace that aims to increase the visibility and investment readiness of high-potential impact projects. The platform has supported close to 100 projects across over 40 countries, covering fields like education, healthcare, ocean conservation, and sustainable agriculture. Funders can back these projects with grants or blended finance options. Co-Axis emphasizes rigorous impact measurement and reporting, offering mentorship and expertise to help early-stage ventures strengthen their frameworks and attract investment [para. 11][para. 12][para. 13][para. 14][para. 15][para. 16][para. 17].

By creating an ecosystem—both online and offline—where startups, mentors, and investors can connect, Co-Axis helps credible, mission-driven startups become attractive investment opportunities. As global venture funding becomes more selective, it is vital to support impact-driven businesses that need longer timelines to deliver sustainable change. Business opportunities in key sectors could exceed $12 trillion annually by 2030, underlining the enormous potential and need for a vibrant impact economy [para. 18][para. 19][para. 20][para. 21][para. 22][para. 23][para. 24].