7/11/11 NESTA today announces six investments totalling £1.4 million, designed to grow the impact of social ventures by boosting the UK's leading social venture intermediaries. This brings NESTA's total commitment in this sector to over £5 million.
NESTA has been working for several years to support social ventures - organisations with measureable social impact, financially viable business models and capability of scaling their impact - which can offer radically different, cheaper and better solutions to some of society's biggest challenges.
NESTA's recent reports, Growing Social Ventures and Twenty Catalytic Investments, demonstrate the role and range of intermediaries in getting support to these ventures. However, there is general recognition that the intermediary market is an immature one, and NESTA is investing to build a portfolio of stronger intermediaries better able distribute capital to ventures, attract new capital to the market and to help social ventures to become more 'investment ready'.
Joe Ludlow, NESTA's Director of Social Ventures, says: 'We know that for social ventures to operate on a scale that will make a sustainable difference to the UK, they need to be able to access investment capital and advice in an appropriate form and at the right time.
Today's investments extend our already strong commitment to developing the social venture intermediary marketplace to provide this help. We're delighted to be working with and learning from some of the leading players in this emerging market.'
The six organisations receiving support are:
Abundance, is a new retail finance business model currently focused on renewable energy. This model allows people to invest in things they care about at community level directly via a web portal. Authorised and regulated by the Financial Services Authority, Abundance aims to reconnect people with their communities, encourage sustainability and long-term investing, and promote financial inclusion and well-being. NESTA's support will help Abundance to develop and launch its first investments in the New Year.
ClearlySo was founded in 2009 as the first global marketplace for social business & enterprise, commerce and investment - focussed on helping social entrepreneurs to succeed. It has developed Europe's leading industry database of verified social businesses and enterprises and, in March 2012, will launch the UK's first social business investor network. NESTA's support will help increase membership and engagement of social ventures related to public services.
Resonance, a financial intermediary specialising in social enterprise and impact investing has been focused on the use of risk capital to support social enterprises since 2002, with a particular focus on property and venture capital. NESTA's support will expand the capacity of the team to manage increasing activity and funds under management.
Social Innovation Camp was founded in 2008 based on the belief that technology will play an important role in revolutionising public services and solving our most pressing social challenges. The organisation runs competitions, events and a three month accelerator programme for technology based social ventures called Bethnal Green Ventures. NESTA is supporting Social Innovation Camp to develop and will invest in further rounds of Bethnal Green Ventures.
Participle, best known for its Circles venture, is seeking to design the next generation of public services and has over the last three years established an internationally respected team and demonstrated the potential to transform a number of key areas of the welfare state. NESTA's investment will help Participle to grow the scale of a number of its new ventures across the UK.
The Young Foundation is one of the leading social venture intermediaries in the UK, with substantial experience and knowledge in supporting social innovation. Young Foundation will use NESTA's investment to strengthen its social venturing team, and grow the number and range of ventures it is able to support.
These investments have been made from NESTAs Big Society Finance Fund - which was established to prototype the type of investments to be made by Big Society Capital - and NESTAs Social Venture Intermediary Fund, which was established to provide funding and support to social venture intermediaries to help them increase their impact on innovative social enterprises and ventures.
NESTA now has a portfolio of investments in fifteen intermediaries, representing a total commitment of over £5 million, through which it will work to further develop and grow the impact of social ventures across the UK.For further information about all fifteen organisations receiving investment from NESTA, visit www.nesta.org.uk/social_enterprise
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Notes to editor:
For further information contact Jan Singleton on 020 7438 2606/ jan.singleton@nesta.org.uk
About NESTA
NESTA is the UK's foremost independent expert on how innovation can solve some of the country's major economic and social challenges. Its work is enabled by an endowment, funded by the National Lottery, and it operates at no cost to the taxpayer.
NESTA is a world leader in its field and carries out its work through a blend of experimental programmes, analytical research and investment in early-stage companies
Further information on each of the six organisations can be found at:
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sarah.reardon@nesta.org.uk
Guy Bilgorri
Press Officer
t: 020 7438 2611
guy.bilgorri@nesta.org.uk
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Nesta Operating Company, a company limited by guarantee registered in England and Wales with company number 7706036 and charity number 1144091. Registered as a charity in Scotland number SC042833.
