First steps to accessing social investment Workshop 1 Geetha Rabindrakumar (Big Society Capital) Dan Hird (Triodos) John Williams (Resonance) Ed Siegel (Big Issue Invest) Big Society Capital works through roles as: INVESTOR CHAMPION Grow the social investment intermediary market Increase awareness and confidence in social sector and in social investment Provide affordable and appropriate finance for frontline social organisations 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 ACCOUNTS £109m £72m HIGH STREET BANKS 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” Achieving better outcomes – CPCEs Delivering enhanced care beyond basic needs, with reduced social isolation • 2 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 Commissio ning/reven ue support BLF Outcomes Fund (£40m) CO Outcomes Fund (£10m) Type of capital Secured Loans Social Banks (~£180m) Unsecured Loans Social Investment Funds (~£20m) Tech for Good (£500K) Equity Fully or partly funded by Big Lottery Fund Big Venture Challenge (>£5m) Grant Partly capitalised by Big Society Capital Other Grant programmes from Charitable Trusts and Foundations (>£2bn) Restricted Grant OCS Social Incubator Fund(£10m) Start up BIG Potential (£10m) Early Fully or partly funded by government CO ICRF (£10m) Growth Stage of business growth Established Support to prepare for investment 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) – 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.u k/social-ventures/ 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-leedsfocus-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 tool http://www.fundingcentral.org.uk/Page.aspx?SP=6059 Contact: [email protected] 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? For INVESTEES • Fills financing gap for innovation and growth, increasing impact. For INVESTORS • Capital is recycled for onward investment • Strengthens governance and accountability • Deeper engagement with social sector and community • Brings in new groups of supporters, and their skills and experience • Helps shape a new responsible form of capitalism Funds in 2014 Care and Wellbeing Healthcare SIB Fund Finance for medium enterprises Other sector focused funds…? Charity Bonds Small unsecured loans Commitments we’ve made £150m committed Operating Intermediaries Social Loan Funds Social Enterprise Funds Issue Specific Funds Social Impact Bonds Regional Funds Future Developments Social Investment Tax Relief Social ISAs (bond funds) Community Assets Fund ICRF 2 (Cabinet Office) BSC & BIG cofinanced initiatives Manifesto development www.bigsocietycapital.com Big 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.