30 October 2024, Melbourne – Systems investing is distinctly different from traditional investing. In this work with Regen Melbourne and funded by Transformational Capital Initiative , we delve into the key differences, aiming to attract like-minded professionals to join forces. Our goal? To establish funds that apply a coherent systems-investing logic right here in Australia.
The core principle of systems investing is simple yet profound: investing millions can connect billions and inspire trillions. The question is, how can this be turned from a catchy phrase to a methodology for sustainable investment and development. In this report we share a story about how millions of dollars could be invested towards making the Birrarung/Yarra River swimmable, in a way that catalyses billions across all industries in Melbourne – from nature-based markets, water, construction, technology an entertainment – to deliver trillions in long term economic value, including inspiring generations of young people into science and other related innovative pursuits.
‘Connecting billions’ and ‘inspiring trillions’ are not scripted in traditional investment logic – they emerged, often across a portfolio innovations and interactions. Instead, traditional investment logic fails to capture the benefits of complex adaptive systems. It relies on neat, linear relationships between cost and benefit, which are unsuitable for investing in natural and social systems transformations, such as river systems. These transformations involve intricate and multifaceted relationships between value and investment.
There is a growing willingness and readiness for systems investing in Australia. The main challenge lies in funding the early stages—bringing together a coalition of individuals with a systems mindset, capable of framing clear and compelling visions and investing in game-changing lead projects. This requires new roles, innovative partnerships across communities, sectors, and investor types, and investment vehicles that deliver real-world, systemic outcomes. Simply pouring more money into the existing paradigm won’t solve the problem; it may even reinforce outdated economic structures. Instead, even minor tweaks to how existing budgets are spent, ensuring they connect more coherently to real-world systems value, can have a significant impact.
A global community is forming, ready to define the problem and act on the solution. This is an open invitation to the investment community to explore how we can shift the quality of capital towards aligning with systemic change in Australia.
Global network forming
