Social Enterprise Access to Investment (SEATI)

Social enterprises have been hailed as one of the most exciting emerging sectors in the UK, contributing at least £8.4 billion to the economy every year.

However social enterprises can find it difficult to access the finance needed to grow - particularly new sources of equity and equity-like finance.

NESTA's Public Services Innovation Lab is working with the Office of the Third Sector (OTS) to provide a year-long Social Enterprise Access to Investment (SEATI) facility designed to give social enterprises the best advice to help them access risk capital. 

The facility will offer a success fee that will incentivise brokers of advice to help social enterprises access funds.

About SEATI

NESTA and the OTS have developed the SEATI pilot to find and test new ways for social enterprises to gain the advice and support they need to access new forms of growth finance.

The programme complements other initiatives to increase supply of risk capital for ambitious social enterprises such as NESTA's cornerstone support for the Bridges Social Entrepreneurs Fund and the Big Issue Investment Social Enterprise Fund and OTS's Risk Capital Fund (soon to be launched).

The pilot will develop and test a number of key principles and design approaches and the learning will be made available to the broader social investment community throughout the programme.

Eligibility

1. The SEATI programme will be success based, payable to any investment readiness provider on securing (on draws, even in stages) equity or equity-like investment deals for social enterprise.
2. Payable on receipt of investment from a finance provider and expected to be in the region of 3-5% of the value of the deal secured and in line with market rates for fees for investment readiness in this market.
3. Available to any IRP that works with a social enterprise based in the UK.
4. Payable for quasi equity and equity investments (i.e. returnable capital that has equity like features).  SEATI is not available for grants or venture philanthropy. An investment is defined as having equity-like characteristics if it has flexible repayment terms and higher risks but potentially higher returns and where returns are dependent on success, such as an agreed percentage of future income or surpluses. Risks and rewards are shared between investors and investee.

How to apply

In order for us to understand social enterprises getting ready for growth capital and the specific barriers they face and how the SEATI fund can help, please tell us a bit more about your business and investment needs. Download the guidance notes to find out what information to send us.

We will review the information you provide and be back in touch for more information and/or to let you know if you are eligible for the programme and how to secure the SEATI offer.

To find out more about accessing the SEATI programme or to tell us more about your needs, email seati@nesta.org.uk