# What are Impact Bonds
Impact Bonds is an intense read on these financial instruments based on the online educational tutorial published by The middle Road on this subject. A derivative of many research papers, this read is a precursor to the upcoming online course on impact bonds. The report aims to share a brief on the evolution of Impact Bonds and outline recent findings, especially both the positives and negative aspects of these instruments. Part republished from the older The middle Road site. Impact Bonds are social innovation instruments enabling private capital within the development sector. Structured as a participative public-private partnership model involving multiple sets of actors, Impact Bonds started as Social Impact Bonds. Designed to transfer risk to non-governmental players, Impact Bonds bridge the funding gap between the public and private sectors for development work. As of July, 2020 according to Brooking Impact Bond Database, 194 impact bonds contracted with $441 million capital paid upfront for implementing the projects or interventions that target specific preventive social outcomes with a financial return.
Recent figures shared by Brookings Institute Global Impact Based Database March 1, 2022 details total 225 impact bonds contracted globally that includes 210 Social Impact Bond (SIB) with 15 DIBs across 37 countries. The tool uses public funding to deter adverse social outcomes which public entities might not pursue.