It was with shock and tremendous sadness that we heard of Stephen’s tragic accident last week.
When setting up Big Society Capital, Stephen’s insight and depth of knowledge about charities, social enterprises and corporate structuring was instrumental in turning the vision of a 'social investment bank' into the reality of Big Society Capital.
Last week we shared with you what we and our friends at ClearlySo think are the major 'Dos' of pitching for social investment. This week, we would like to share with you our thoughts on the major Don’ts of pitching for social investment.
Social Investment Tax Relief (SITR) was introduced in the Finance Bill 2014 to kick-start social investment in the UK and was enacted into law in July 2014. This is a vital step in ensuring that charities and social enterprises get the risk capital they need.
Social investment lies at the intersection of social and financial return. For social organisations looking for investment, this creates a need to find a balance in pitching between looking like you are prioritising financial returns over social outcomes, and looking like you are so socially minded that you are unlikely to be able to produce financial returns alongside social ones.
Today Big Society Capital is pleased to announce the release of its Social Investment Insights piece 'Growing the Market for Charity Bonds', outlining the development of the charity bond market to-date and highlighting some of the potential future initiatives that could further accelerate charities and social enterprises access to the public debt markets and the attraction of capital at scale into the social investment market.
In a recent artlce for Pioneers Post, David Floyd looked at the moral and practical dilemmas of creating markets where the end customer doesn’t pay (e.g. NHS). But are there further implications of end customers not paying for charities’ services? And how can we embed customer-centricity in the third sector to encourage greater innovation, efficiency, and ultimately better outcomes for people?
Helen Heap and Robbie Davison have written a thoughtful short book "The Investable Social Entrepreneur - Introducing Builder Capital." Geetha Rabindrakumar, with her experience from working in Big Society Capital and a range of charities, and Danyal Sattar, as a grant maker and social investor with Esmee Fairbairn Foundation discuss “Builder Capital”:
A new report by Bates Wells Braithwaite, commissioned by the Social Investment Research Council, published today, sets out the barriers for both social investors and investees created by the Financial Promotion Regime.
Today's Queen Speech included the announcment of the forthcoming Pensions Bill. Alongside other colleagues in the Social Economy Alliance, Big Society Capital has joined a call for this to include a French-style ’90-10’ rule.
The first ever issuing platfom that will enable charities to raise medium term debt through bonds listed on the London Stock Exchange was launched yesterday in a partnership between Allia and Canaccord Genuity.
In 2013 Big Society Capital invested in ClearlySo as part of our commitment to supporting the infrastructure needed to help grow the social investment market. ClearlySo has since used the investment to grow its execution, advisory and investor relations teams, to provide it with the capacity to support more entrepreneurs and raise more capital. In that time they have supported 18 organisations, where businesses and funds raised over £31m in investment. Of that, £15m was raised directly by ClearlySo. Significantly, it enabled ClearlySo to work with Impact Ventures UK, which reached a first close of £20.8m in December 2013.
We’ve just published a strategy for Big Society Capital to guide our next few years. It sets out a vision for the future social investment market, and what we can do as a champion and investor to work towards this vision.
Last night, we celebrated Big Society Capital’s second anniversary at an event kindly hosted by CCLA, with a room full of people who have all played a role in taking the vision for social investment and Big Society Capital ‘from ambition to action’. We heard from speakers including Nick Hurd, the Minister for Civil Society [“it really feels like the idea of social investment is coming of age. It’s always been a beautiful vision but day by day we’re turning it into a reality that touches people’s lives”] and four organisations that have received investment (DERiC, Real Lettings, Impact Ventures UK and Bridges Social Impact Bond Fund).
Today the Social Investment Research Council, launched last year as a partnership between Big Lottery Fund, Big Society Capital, Citi, City of London Corporation and Cabinet Office, publishes its first report.
Whalley Community Hydro – a community renewable energy scheme in Lancashire’s Ribble Valley – is the first organisation to be awarded a loan by Charity Bank following Big Society Capital’s investment in the Bank last month.
Today, Impact Ventures UK (IVUK) has announced its first investment of £800,000 into K10 - an independent social enterprise that employs apprentices and places them in the London construction industry.
Today the Chancellor, the Rt Hon George Osborne MP, has announced that the rate of the new social investment tax rate relief will be 30%. This means that the relief is equivalent to existing venture capital schemes. This is good news for charities and social enterprises who, we hope, will now be able to access around half a billion pounds of additional investment over the next five years.
In November 2013, we announced our cornerstone investment of £10 million in the UK Social Bond Fund, a joint initiative by Threadneedle Investment and Big Issue Invest. This week, the official launch of the first UK, daily liquid social bond fund was met with a packed room of both social investors and more 'traditional' investors.
“It’s been great to spend a day feeling being both inspired and better informed”
This was just one of the comments from a social enterprise delegate attending one of the two events on social finance that Big Society Capital supported with Social Enterprise North West (SENW) in Salford and Social Enterprise Yorkshire and Humber (SEYH) in Leeds last week. Both SENW and SEYH ran fantastic lively events to bring social enterprises and charities together with social finance providers – with the chance to meet similar organisations and social finance organisations, debate, and hear updates on current developments and examples of social investment in action.
Despite the UK's ageing population, the number of people getting essential support in their home has actually fallen in the past five years, leaving an estimated one million people without any help. As a result, care services are there to respond to crisis rather than provide the support needed to prevent vulnerable individuals from reaching crisis point...