Developing demand:Government are being supportive in trying to help to grow the market e.g. the setting up of BSC to create opportunities for investment into the sector but realisation that there are not enough investable deals “ready to go”. There is a need to support organisations to become investment / contract ready.Open Public ServicesNew opportunities arising from the Personalisation agenda and move toward Payment by Results contracts.Financial Intermediaries:Market is still fairly young and heavily weighted around six financial intermediaries. BSC capital will help intermediaries in becoming part of a growing market place.
Fund not for everyone:Fund is aimed at organisations close to securing large scale investment / contract. Notaimed at early stage / small proposals who may wish to look towards other more appropriate support e.g. Community Rights/ Big LotteryDiversify and Strengthen: The structure we have adopted for the delivery of this fund is aimed at increasing the Investment/Contract readiness support to social ventures. Proposals are brought to us jointly by the venture and their provider (consultant). Through this we will also monitor the quality of applications / work undertaken /outcomes = understand how good individual providers are and help to drive up the quality of support being provided to ventures.Consciously Self –interested strategy: Investor Panel made up of a number of main investors in the market place. Investors are afforded an oversight of proposal through this process and therefore already on the radar of all leading social investors. Note not exclusive to these investors to return to for investment but gets their name and proposal known.
Investment andContract ReadinessFundJulie WakeHead of Investments
Context and need• Developing demand for investment for growth– need for more investment ready social ventures• £600m injected into the social investment market by wholesaler Big Society Capital• Open Public Services 2012 – transformation in contracting opportunities for social ventures• Six financial intermediaries account for 90% of the market* - need for diversification, strengthening and growth*Source: Boston Consulting Group 2011
What will the Fund do?• Help charities, social enterprises, mutuals, social businesses and other social ventures get ready for social investment, seek and secure social investment and compete for public service contracts• Diversify and strengthen the investment and contract readiness market• Build a social corporate finance sector for the UK• Consciously self-interested strategy: ventures, providers and investors
About the Fund• £10m from the Cabinet Office• £50,000 to £150,000 currently grants, may introduce some repayable elements• Seeking to make approx. 130 awards• Applications open till at least September 2013• 3 - 18 month investment/contract readiness plans www.beinvestmentready.org.uk
Criteria: Who can apply• Social ventures seeking to raise investment of at least £500,000 or win contracts of at least £1million• Investment and contract readiness programmes of 3-18 18 months• Budgets of between £50,000 and £150,000 to purchase specialised investment and contract readiness support and to cover some of the costs of putting the investment/contract readiness plan into action• Ventures based in and working in England• Compliant with State Aid regulations• Neither religious nor party political in nature
Investors Panel: At the heart of the Fund• Big Society Capital (chair) • FSE Group• Big Issue Invest • Natwest• Big Lottery Fund • NESTA• Bridges Venture • Panahpur• CAF Venturesome • Triodos Bank• Deutsche Bank • The Social Investment Business
Providers• The fund is focused on enabling social ventures to access specialist support from an approved investment/contract readiness provider• Providers have a track record in supporting social ventures to secure social investment or win contracts• Creating a partnership approach to developing, delivering and managing investment and contract readiness plans
Providers• 26 providers – big and small• Sector players like ACEVO, Locality, ClearlySo, Resonance, Social Finance, Triodos, Impetus Trust• New entrants from the social sector like Pulse Regeneration, inspire2aspire, Bridge Consulting, Bidright, Social Enterprise Support Centre• New entrants from the commercial world like Banks Cannell LLP, Claridge Capital, Deloitte and PwC
Experience in Application providing investment/contract Process readiness services? Social ventures looking to grow and business Looking to raise£500K investment or Apply for approval advice providers win £1m contract? with a track record in investment or contract readiness work Find a Approved provider can apply. provider Apply Discuss proposal
Applying to the Fund• No deadlines - Applications will be considered on a rolling basis• Providers and social ventures need to apply in www.beinvestmentready.org partnership• Download form and guidance from the Fund website
About the application• History, key achievement and development• Analysis of current position• Past, present and projected financial position• Development analysis and needs• What your investment and contract readiness project is, why can’t you secure investment/contracts now?• Quarterly milestones and budget• State Aid
Something to think about…• Be self-aware and frank• Be ambitious and brave• Clear identification of barriers and risks and response to them• This is additional funding for investment or contract readiness – it’s not a fund for overhead costs or existing services/provision• Success fees are not fundable but are encouraged• Grant is split 60:40 providers: venture• Explain why this cannot be funded from reserves/balance sheet/income• Bear in mind the panel are looking for value for money• Focus on the specific progress toward investment/contract readiness. Name target, maintain line of sight to outcome – IP now quick to reject generic capacity building application
Not for you?• Looking to take over an existing public service in www.thesocialinvestmentbusiness.org/ your local area? our-funds/• Want to buy or manage a local building or land for community benefit?• £26m Community Rights Grant Programme