A class of 'Impact Investing' where your activities bring about measurable social impact, thereby creating Social Dividend, in addition to profit dividend.
As a relatively new investment space, with a number of potential obstacles for investees /impact investors to overcome; impact investors need to satisfy themselves that your organisation is positioned to deliver a blended return (the ability to generate a financial return allied to social value).
There are marked similarities between 'Investment-Readiness' status in the ‘commercial investment market’ (CIM) and 'social investment market' (SIM), in large part due to the increasing number of financiers that are moving into the SIM ecosystem bringing with them standard commercial practices and underwriting.
Differences tend to be around the inclusion of social impact assessments for the SIM and the smaller-sized funds compared to their counterparts in the commercial sector.
Today, should a social enterprise (SE) identify investment from the SIM then it needs to do 4 things:
consolidate and 'professionalise' its business practices.
consolidate and 'professionalise' its governance structures.
examine and improve the competence of its management team.
undertake systematic financial modelling and thorough market research to produce sound, credible business plans that will stand-up to investor scrutiny.
Fortunately, in view of the costs involved, initiatives exist to support these developments.
We are looking to work with growing organisations that are actively seeking investment or contract opportunities.