GROWING SOCIAL VENTURESCliff Prior, Chief Executive, Big Society Capital

@cliffprior@BigSocietyCap

ABOUT BIG SOCIETY CAPITAL

Big Society Capital is an independent financial

institution with a social mission, set up to help to

develop social investment in the UK.

Champion for Social Investment

Wholesale

Social Investor

AS A CHAMPION

Business Impact Challenge

GET IT Public service reform

Transparency

Research Council

Charity Bonds Social Pensions Crowd Funding

Working with charities & social

enterprises

Working with investors

Social impact tools

CURRENT PROJECTS

CORE ACTIVITIES

AS AN INVESTOR

Co-development

Applications

Drawn down by

charities and

social enterprisesInvestment into

intermediaries

£289 million+ £505 million co-investment £110 million

+ £175 million

co-investment

OUR FOCUS

Finance for small & medium-sized

charities & other social sector organisations

Capital that allows innovation in tackling

social problems to quickly grow and

replicate

Mass participation in social investment

.

Greater financial scale in order to

finance social issues

THE SOCIAL CHALLENGE IN THE UK

Housing & local

facilitiesCommunities Education

Income & financial

inclusion

Health &

social careEmployment &

training

Family, friends and

relationshipsCriminal justice

Arts, heritage, sport

and faith

WHAT IS SOCIAL INVESTMENT?

Social investment is repayable money to help charities and social

enterprises to do more of their important work.

ONE TOOL FOR SOCIAL VENTURES

Trading Donations

Bank

Finance

Contracts/ Payment

By Results

Social

Investment

FINANCIAL TOOLKIT

To build innovation, growth and sustainability

EXAMPLES OF HOW IT WORKS

9

SOCIAL SECTOR INFO

10

£39bn income

£38bn spenddeclined since 2007

peak of £41bn

900k civil society orgs

161k charities

70k social enterprises

Social enterprises contribute

£24bn to economy

and employ 1m people

Charities & social enterprises

are regulated organisations:

asset locked / (part) profit locked

52% of social enterprises grew in last year

40% of mainstream sme’s grew in same year

SOCIAL INVESTMENT MARKET SIZE

11

13

£39bn income

£38bn spenddeclined since 2007

peak of £41bn

THE RISE OF THE MISSION LED BUSINESS

14

CONTROVERSIES

15

CONTROVERSIES

16

Regulated, no/limited private gain

Can’t give equity investment – slows

down growth

Will they still be

social tomorrow?

CONTROVERSIES

17

Regulated, no/limited private gain

Can’t give equity investment – slows

down growth

Will they still be

social tomorrow?

?

18

19

20

BUSINESS FINANCE IN DISADVANTAGED AREAS

21

Banks still not reaching

disadvantaged areas enough.

CDFIs help but are poorly

supported and reliant on

EU funds/guarantees which

will disappear with Brexit

A CALL TO ACTION

22

• Traditional social sector is struggling but resilient

• Social investment can help some to do more

• Growing movement of social entrepreneurs and

profit with purpose businesses

• Increasing interest in inclusive business

• New social needs including the people “left behind”

• SME business finance in disadvantaged areas

needs an urgent reboot

www.bigsocietycapital.com

Big Society Capital Limited is registered in England and Wales at Companies House number 07599565. Our registered office is 4th Floor, New Fetter Place,

8-10 New Fetter Lane, London EC4A 1AZ. Big Society Capital is authorised and regulated by Financial Conduct Authority number 568940.

23

Thanks for listening

@cliffprior

@bigsocietycap

www.goodfinance.org.uk

#socinv