Tyton Partners, in partnership with World Education Services (WES) and Strada Education Foundation, has released Catalytic Capital: Funding the Missing Middle in the Education-to-Workforce Ecosystem. The report spotlights a critical funding gap that limits scalable innovation in workforce development and makes the case for catalytic capital—impact-first, flexible investment—as a key solution. Often overlooked by traditional funders, these high-impact initiatives can be unlocked through catalytic capital to drive more equitable education-to-career pathways. The findings draw from interviews with leading impact investors and a review of 30+ studies.
The report offers a clear framework for deploying catalytic capital alongside grants and market-rate investments, targeting three types of market failure: nascent, subsidized, and broken. With real-world use cases—from student financing to career navigation tools—it urges funders to move beyond binary investment models. By embracing a more holistic capital strategy, investors can scale what works and close opportunity gaps across the education-to-workforce landscape.
Key insights from the report include:
Catalytic Capital Tyton Partners