PROJECTS AND REFERENCES
We work with a wide range of different types of financiers. Here's a small selection.
FORWARD ENTERPRISE FUND
The fund which gives people a second chance
Ex-offenders and people in recovery from addiction, often find that the labor market is often closed to them. The British foundation Forward saw that their successful work in rehabilitating people serving a prison sentence, or recovering from drug abuse, becomes increasingly difficult to maintain when clients are unable to get employment. To address the problem, the foundation initiated this fund which provides support for starting or expanding businesses which provide jobs to people from those two target groups. Forward had no knowledge of its own to finance companies.
The fund matches the funds that an early-stage company has been able to raise through crowdfunding; for those who are in the growth stage, it offers business advice and loan financing. The fund's capital comes primarily from a public, national fund, which also provides the fund with financial support for some of the administrative costs. A Swedish family provides money which entrepreneurs can receive as matching grants in crowdfunding. The business advice is financed through a grant from one of the national lotteries. The loans offered are unsecured and with an interest rate of 7-12%. A smaller part of the loan is donated when the social results are achieved.
We helped Forward to launch the fund in April 2018 and helped the foundation manage the entire investment process. To date, 17 English organisations have received support. Some of them are: TAP Social, a newly started Oxford brewer that offers internships and jobs to people who have just served prison sentences; Seagulls Re-use in Leeds, which began its business of processing and selling leftover paint, thus creating a work-integrating, profitable business; HM Pasties who opened a bakery in Manchester staffed with ex-offenders.
Read more about the Forward Enterprise Fund
RISK CAPITAL COMPANIES & PRIVATE INVESTORS
To increase social and economic returns based on their own circumstances
We help our members and customers identify companies and funds with a high potential for solving social challenges and providing good financial returns. We support venture capital companies such as Gullspång Invest (pictured), Etikinvest, Harbert European Growth Capital with deal sourcing and evaluations of unlisted companies in Sweden and the rest of Europe.
We have trained and guided a number of families and private investors in applying an impact approach in their own wealth management and long-term savings, especially when a younger generation begins to take over the reigns of the family wealth. Our starting point is to show how to invest in organisations that contribute to a better society, regardless of financial capacity. Joining our investor network is an easy way to learn from experienced impact investors.
Some of the companies we've helped raise capital:
DEVELOPMENT OF NEW FINANCIAL MODELS
Having social results as a starting point for procurement
and investments in new welfare solutions
We have done several studies and calculations for new financial models, for clients such as the European Investment Bank and the Swedish Procurement Authority. These reports show a number of examples of how public procurement and social investment funds can be used to bring in more social innovation within Swedish municipalities and counties. In one of the reports, we also describe the feasibility study that we did in collaboration with the Swedish Municipalities and the County Council (SKL) on the Nordic region's first sustainability bond with a social outcome contract for long-term sick leave.
If you’d like to gain a deeper understanding of social outcome contracts, bonds and public social investment funds, click here to be taken to our free e-learning course with nine short videos.
FORWARD ENTERPRISE FUND
Entrepreneurship in conflict areas
For the past two years, Impact Invest has been assisting social investors in the Netherlands who are involved in the reconstruction of communities in conflict areas. An entrepreneurship program and associated fund was set up in Jordan to both support refugees from Syria to start businesses and to encourage Jordanian entrepreneurs to create mixed teams with refugees and local team members. Impact Invest was first hired to evaluate the program and the fund's results. Our recommendations led to modifications and proposals for partnerships, which meant that companies received more qualified support, whereupon the growth rate increased.
Assured that the model was tested, a similar program was started in Kurdistan. With a focus on replication, we mapped similar initiatives throughout the Middle East and identified additional funders. The program became more specific and has found its niche in a market of actors who rarely lend small amounts to companies in the early growth stage.
The assignment led to the current investors having direct contacts with several other potential financiers and getting a large number of recommendations on critical factors to create an effective structure - with the requirements of both the specific social goals and the challenges of conducting business in these areas. Several of the companies that have received loans through the social investment program in Jordan work with circular economy and environmental issues.
Are you interested in investing in entrepreneurs in the Middle East or Africa? Impact Invest has both team members on site and a large network of contacts with entrepreneurs who have participated in our programs and projects.