Impact survey: HIIN unveils initial report detailing influence in Greece
Greece is witnessing a surge in impact investing, with a growing private sector momentum that is supported by structural reforms and an evolving ecosystem. According to the Hellenic Impact Investing Network (HIIN), responsible consumption is the most common area of focus for Greece's impact start-ups.
The backbone of impact investing in Greece is formed by public institutions such as the Hellenic Development Bank, the Hellenic Development Bank of Investments, and the Growthfund. However, the role of public institutions is more cautious and regulatory, with the government focusing on fiscal policy and debt management.
The HIIN published The Hellenic Impact Report 2024, the first coordinated attempt to map, study, and benchmark the entire Greek impact investing ecosystem. The report reveals that direct, unlisted investments from the domestic market into impact in Greece almost doubled in two years, growing from €1bn in 2022 to €1.8bn in 2024. When combined with EU and foreign capital, more than €10bn was mobilised in impact investments across Greece in 2024.
The social enterprise ecosystem in Greece is expanding quickly, but there is a lack of dedicated Greek impact funds and accessible financial products, which limits options for capital deployment. The majority (57%) of impact ventures in Greece are in the ideation, pre-seed, or seed stage, indicating a need for working capital, seed and venture-stage equity, and structured finance of more than €1m to scale companies and projects in Greece.
Private sector participation in impact investing in Greece is still limited, and pension funds and insurance companies have shown limited engagement in impact strategies to date. Venture capital and private equity constitute the preferred financing instrument used by 64% of domestic investors in impact ventures in Greece. The majority of investment into impact start-ups is concentrated in the growth (39%) and seed (35%) stages.
The blue economy presents a significant impact potential for both the sustainability of the oceans and coastal communities, as well as for economic gain, according to the report. The HIIN identifies sustainable aquaculture, offshore wind, regenerative tourism, green shipping, and sustainable food systems as industries being driven by EU-aligned policies and growing interest from international capital in the blue economy.
The HIIN is working on designing a dedicated legal and financial framework for impact investing, including a national impact law and a standardised reporting framework. They also plan to provide training on how to use the reporting framework to seven Greek impact fund managers.
In summary, Greece’s impact investing is characterized by private sector dynamism backed by structural reforms and growing investor confidence, while public institutions play a more cautious and regulatory role, and dedicated impact funds are emerging but require maturation and pipeline development. The main challenges revolve around ecosystem maturity, clearer definitions and impact metrics, and public sector engagement pacing.
- The Hellenic Development Bank, the Hellenic Development Bank of Investments, and the Growthfund are key public institutions contributing to the backbone of development finance in Greece.
- Venture capital and private equity, used by 64% of domestic investors, are preferred financing instruments for impact ventures in Greece.
- The social enterprise ecosystem in Greece is expanding, but the lack of dedicated Greek impact funds and accessible financial products restricts options for capital deployment.
- The blue economy is identified as a significant impact potential area in Greece, with industries like sustainable aquaculture, offshore wind, regenerative tourism, green shipping, and sustainable food systems gaining interest from international capital due to EU-aligned policies.
