In the hallway between the investment office and the foundation office a new third pocket way of investing is emerging; a new Blended Value asset class. As clear headed as investment and as warm hearted as giving. background
They tie community based organizations into a network and align them to use an online application that saves the state money while strengthening the core mission of social services agencies. Now operating in a half a dozen states but needs expansion capital to reach its potential
Incubated by the Families USA Foundation, a social entrepreneur took the concept and turned Real Benefits into a McArthur Genius Award winning system that makes health care and other benefits available to the marginalized. Now in two states and ready for expansion.
Market interventions need to do the things the public safety net used to do. background Why a change is needed
We create sustainable interventions using the market to change the game and help people bridge the gap What Goodcap does background
market rate near market rate concessionary rate no return, tax credit
Social Venture Partners
New Profit Inc.
Acumen, Newschools Strategic Philanthropy Socially Screened Funds Community and SE Investment Socially Targeted Market Rate Instruments Social & Community Development Venture Capital
The new space we fill… Risk/ Return Purpose Why they don’t plug the gap Traditional Capital Market Market rate risk/ return Maximize financial return No interest in social impact or the cost of doing good Donors -Grants HI Risk No Return (tax break) Maximize social return Limited scale Often lacks business case Debt (NonProfit, ComDev, most PRIs) Med/Low Risk Low Return Demands collateral, lower risk profile doesn’t fund expansion Expansion Equity and Equity-like Med/High Risk Med/Low Return Balances SROI within traditional business ROI for expansion Fills the growth gap , its what we are creating CDVCs/ SVCs High Risk Med/High Return Maximize financial return within social or community development context No appetite for the cost of doing good Fiduciary responsibility to get a market rate return Social Return Financial Return Balances SROI within business traditional ROI e.g. Banks and Private Equity Foundations Calvert Foundation Partners for a Common Good NP Finance Fund Pac Com Ventures SJF Ventures Investors Circle Some Venture Philanthropy and Foundations nibble around the edges, no inst.