First steps to accessing social investment

Workshop 1Geetha Rabindrakumar (Big Society Capital)Dan Hird (Triodos)John Williams (Resonance)Ed Siegel (Big Issue Invest)

Big Society Capital works through roles as:

INVESTOR

Grow the social investment intermediary market

Provide affordable and appropriate finance for frontline social

organisations

CHAMPION

Increase awareness and confidence in social sector and

in social investment

e.g. Increase opportunities to showcase social investment and for social sector to connect with

finance providers

Stimulate creation of investible products for individual and

institutional investors

e.g. Work with UK and EU governments to encourage

appropriate policy and tax support for social investment

Role is as a wholesaler:DORMANT

ACCOUNTSHIGH STREET

BANKS£109m £72m

Improving sustainability - Greenway Centre

“Installing solar panels has enabled us to reduce our operating costs, so our services remain affordable for the whole community”

Scaling with motivated investors - Oomph! Wellness

“We wanted investors that shared our values: namely a commitment to strong commercial returns but never at the expense of the health and wellbeing of the older adults we exist to serve”

• 2

Achieving better outcomes – CPCEs

Delivering enhanced care beyond basic needs, with reduced social isolation

But…need to consider:

• NOT replacement for grants and other income• Social investment is a means to an end…• Options for different organisations (size, legal structure,

stage in development) • Choosing the right option for short term and long term• Understanding risks• Internal capacity and capability • Visibility of process• Impact – demonstrating social outcomes

Wider social investment ecosystem

OCS Social Incubator

Fund(£10m)

Big Venture Challenge (>£5m)

CO ICRF (£10m)

Stage of business growth

Commissioning/revenue support

Secured Loans

Unsecured Loans

Equity

Grant

Restricted Grant

Social Investment Funds (~£20m)

Start up Early GrowthEstablished

Type

of c

apita

l

BIG Potential(£10m)

CO Outcomes Fund (£10m)

BLF Outcomes Fund (£40m)

Fully or partly funded by government

Fully or partly funded by Big Lottery Fund

Partly capitalised by Big Society Capital

Other

Grant programmes from Charitable Trusts and Foundations (>£2bn)

Social Banks (~£180m)

Tech for Good

(£500K)

Support to prepare for investment

– For social ventures seeking to raise over £0.5m investment

– Grant (£50k-£150k) to cover cost of capacity building support (application joint with advisory firm – over 35 approved providers)

– Currently inviting applications from mutuals and arts ventures, as well as others.

http://www.beinvestmentready.org.uk/social-ventures/

Big Potential (new - first half 2014)

- £10m fund over 3 years- For VCSE organisations seeking to

raise up to £500k investment (or contracts)

- Diagnostic tool assessment to check whether social investment is a realistic possibility

- Advisory support (apply jointly with an approved provider):

- Preliminary grants to build organisational capability (c£25k)

- Investment plan grants (c£45k)

Coming soon

• Big Lottery Fund Guide to Social Investment – to be launched May 2014- Have your say on what would be useful! Focus Group in Leeds 13 March

http://www.eventbrite.co.uk/e/social-investment-guide-leeds-focus-group-tickets-10614262545

• Submit online queries to BSC investment team

Other online information

1) Sources of funding currently open:http://www.bigsocietycapital.com/sources-investment

2) Directory of social finance providers and advisers (can filter for specific requirements):http://www.bigsocietycapital.com/finding-the-right-investment

3) NCVO guide and toolhttp://www.fundingcentral.org.uk/Page.aspx?SP=6059

Contact: grabindrakumar@bigsocietycapital.com

For info:

What is social investment?

It IS:the provision of finance to generate social and

financial returns

It is NOT:a grant – there is an expectation of repayment of the

finance, plus a return

Why is social investment beneficial?

• Fills financing gap for innovation and growth, increasing impact.

• Strengthens governance and accountability

• Brings in new groups of supporters, and their skills and experience

• Capital is recycled for onward investment

• Deeper engagement with social sector and community

• Helps shape a new responsible form of capitalism

For INVESTEES For INVESTORS

Funds in 2014

Care and Wellbeing Healthcare

Charity Bonds SIB Fund

Other sector focused funds…?

Finance for medium

enterprises

Small unsecured

loans

Regional Funds

Operating Intermediaries

Social Impact BondsIssue Specific Funds

Commitments we’ve made

£150m committed

Social Enterprise FundsSocial Loan Funds

Future Developments

Social Investment Tax Relief

BSC & BIG co-financed initiatives

ICRF 2 (Cabinet Office)

Community Assets Fund

Social ISAs (bond funds)

Manifesto development

www.bigsocietycapital.comBig Society Capital Limited is registered in England and Wales at Companies House number 07599565.Our registered office is 5th Floor, Chronicle House, 72-78 Fleet Street, London EC4Y 1HY.Big Society Capital is authorised and regulated by Financial Conduct Authority number 568940.