If these results hit a target set before the implementation period, an outcome payer agrees to provide investors a return on their capital.
Based on the SIB model, a DIB creates a contract between private investors and donors or governments who have agreed upon a shared development goal.
[5] In 2014, Palladium International (formerly GRM Futures Group) hosted a conference on rapidly expanding the use of DIBs in developing countries.
[8] The first work applying DIBs to neglected tropical diseases was led by H2O Venture Partners,[9] supported by DFID and UBS Optimus, to develop case studies for the control of sleeping sickness and rabies.
[10][11] A related development, pushed by the International Committee for the Red Cross and other partners, is the Humanitarian Impact Bond, designed for financing aid in conflict-affected areas.