To help bridge the gap between innovative ideas and real-life implementation hurdles related to financial and technical resources, the Social Innovations Institute & Lab ™ have partnered with 5 cap Ventures and Public Health Fund (www.phf1.org) to provide social entrepreneurs with access to start-up capital investments, as well as financial planning and other services, helping them bring their ideas to fruition.
How does the fund work?
The Social Enterprise Fund will invest money, time, and know-how to launch and scale the best social enterprises. To qualify to receive funding through the Social Enterprise Fund, potential partners must first be vetted through participation in the Social Innovations Institute & Lab ™. The Lab process brings entrepreneurs together with business leaders and investors in a didactic setting to draw upon their experience, closing the gap in education and knowledge that impedes many of today’s most passionate social visionaries. This experience enables social innovators to marry their commitment and drive for social change with sustainable plans of action.
Having completed the Social Innovations Institute & Lab ™, vetted participants will then have the opportunity to present their social enterprise proposal to Social Enterprise Fund advisors. Based on the viability of and interest in the proposed social enterprise, the Social Enterprise Fund will award grants and/or loans to the selected applicants to launch or scale their promising social enterprises.
Who are the investors?
Social impact investment has emerged as a new model of philanthropy, balancing the traditional reactive model with a new catalytic one, designed to support initiatives with real potential to drive large-scale social changes. This new approach requires foundations, investors and corporations to invest assets (both tangible and intangible) in socially responsible funds or with other entities that align with their business and social missions. Social Enterprise Fund investors includes individuals, corporations, foundations aiming to align assets with mission and striving for community impacts. These capital investments can help grow new and exciting social enterprises capable of solving social problems while also generating revenue and growth. In return, investors can potentially earn a market-rate financial return on their investments, which enables them to reinvest those funds in other charitable pursuits.
Financial and social returns
This social investment strategy promotes competitiveness and innovation among social entrepreneurs, and facilitates the development of sustainable social business models with strategic and operational impacts. In addition to providing investors with a financial return, the Social Enterprise Fund also delivers high social return that will provide an array of new opportunities to people throughout the nation and help communities thrive.