What stops them? Barriers to institutional investments in transitions and entrepreneurial ecosystems

Institutional investors are increasingly aiming to invest in transitions, and they see entrepreneurial ecosystems as a powerful channel. The potential is large, but so far unmet. So, what stops institutional investors from realising their transition ambitions through investments in entrepreneurial ecosystems? Our interviews with key actors in the Dutch venture investment chain suggest that institutional investors such as pension funds can play a crucial role in providing patient capital to develop entrepreneurial ecosystems and to help scale innovative impact ventures. We identify significant barriers for doing so at three levels: first, there are conflicting goals at pension fund boards; second, within pension fund investment organisations, ecosystem goals are frustrated by existing models, rules, and culture; and third, there are ongoing frictions across the investment chain.