Why investment readiness?
This is a watershed year for the social impact investment market and in turn for social ventures. The launch of Big Society Capital, a 600 million wholesale impact investment bank, whose key mission is the advancement of the market place, will significantly increase the availability of investment for social ventures in the UK.
Big Society Capital s arrival builds on the earlier efforts of NESTA's SVI Fund and Big Society Finance Fund, and more recently, Big Lottery's initial foray into the market place with Next Steps. Going forward we expect to a plethora of new funds being launched as the market develops.
As much-needed social investment impact funds become available, it is vital that social ventures are in a position to be able to take advantage of them to play a transformative role in how social value is delivered to our communities.
How will the Investment and Contract Readiness Fund help?
The 10m Investment and Contract Readiness Fund aims to create a step-change in the market place by demonstrating what can be achieved with significant flows of social impact investment to social ventures and increasing the quality of the support social ventures can access. It will create quality deal flow for the impact investors, many of whom will have access to the Big Society Capital funding in the future to complement their existing funds.
Nick Hurd MP, Minister for Civil Society said:
We want to make it easier for charities and social enterprises to access capital. The Investment and Contract Readiness Fund will create a step change in the number and scale of social ventures that are investable, able to compete for public sector contracts on a level playing field, and creating social impact at a really significant level. The Social Investment Business has an innovative, investor centred approach to running this fund, and I look forward to seeing them put their ideas into motion.