The Arts Impact Fund has supported Effervescent with an upfront cash injection which will enable the organisation to expand capacity within the team and explore commercialising its IP to build different revenue streams and take advantage of new opportunities.
Effervescent is a social enterprise and registered charity based in Devon. They passionately believe that children and young people have the insight, intelligence and imagination to make the world a better place.
With backgrounds in child counselling, youth work, art and advertising, Effervescent have developed a unique methodology for co-producing creative campaigns with vulnerable children and young people.
Their approach not only transforms the lives of those involved directly, but also produces exhibitions and communications campaigns that touch the lives of children and young people everywhere.
The organisation is in the process of transforming its business model to enable it to generate more revenue. With greater earned income the organisation can shift away from its historically reactive, grant-funded delivery model to a more strategic one; creating more chances for traumatised children and young people to heal, make a positive social impact in their communities and go on to form part of the creative workforce. This investment will enable Effervescent to underpin their growth strategy with a team of sales and marketing personnel, sales and customer management systems, marketing collateral and a brand refresh to reflect the products and services they offer. This will consolidate their business model, grow the capacity of the team and help them reach new markets in a stable and sustainable way.
The Arts Impact Fund is also using this as an opportunity to test a different financing instrument and have approved part of the investment as a Revenue Participation Agreement that entitles us to receive a share of the gross income at a set percentage over the term of the loan. This is a performance-related investment, meaning that if Effervescent does well in growing its income, so will we. However, if it underperforms, we run the risk of not recouping our full investment.
Read the full Effervescent case study on the Arts & Culture Finance website.