THE QUESTION
What happens if we incentivize high-impact, high-risk solutions?
The Reconstruct Challenge
In 2019, we were tasked with identifying solutions to housing affordability in the Louisville and Southern Indiana region. An otherwise daunting task, we realized responses to this complex problem were usually expensive brick-and-mortar solutions.
We also found that…
High-impact, high-risk solutions face barriers to capital. Traditional grant processes are engineered for those most familiar with the process—not those most familiar with the problem. The first step to developing a successful solution is a deep understanding of the problem.
There are real barriers to market access for early-stage solutions. Large corporations are a key partner, but because of their size, they lack ways for smaller organizations to partner. The key is to create a low-risk innovation environment for industry partnerships.
Good ideas can come from anywhere. Even though the unique challenges are a Louisville challenge, in our inter-connected economy, the perfect solution may currently exist in another market and we need a new and different solution to unearth this innovation.
Broken systems leave room for innovation, and it’s about time these systems are reworked - reconstructed - in order to serve the people they were designed to serve.
We saw a gap in available risk-tolerant capital for innovators who are tackling social problems
We set about designing a program that would fill it, enabling innovators to address root causes.
We approached this development with the hypothesis that solutions to our community’s most significant challenges had been overlooked by traditional funders, and they needed someone to take a risk to test new ideas.
We designed the Reconstruct Challenge to support enduring solutions while they achieve the traction that de-risks the investment for more traditional funding sources. Larger, nationally-focused funders tend to avoid unproven solutions and generally need to see multi-market penetration before they are willing to help scale them broadly across the country with significant financial support. Reconstruct helps these riskier innovative solutions get closer to the profile of a fundable solution for these funders.
Innovating for an equitable future.
Since 2019, we have executed Reconstruct Challenges in housing affordability, equitable employment, food justice, maternal and child health, and health access.
And…we are only getting started!
To learn more and to partner with us…head over to ReconstructChallenge.com.
