This document discusses social impact bonds, which are an innovative financing mechanism. Social impact bonds allow governments and donors to commission social services from impact-driven organizations, which are paid by investors based on outcomes. Nearly 50 social impact bonds are currently operating worldwide, addressing issues like homelessness, health, employment, and recidivism. For social impact bonds to flourish, there needs to be a focus on measuring outcomes, innovation, and cultural shifts toward evidence-based interventions.

2. Why all the fuss?
COMMISSIONERS:
Governments
and
Donors
SERVICE
PROVIDERS:
Impact-driven
organisations
INVESTORS:
Wealthy
individuals,
foundations
and institutional
investors

3. COMMISSIONERS:
Governments
and
Donors
SERVICE
PROVIDERS:
Impact-driven
organisations
INVESTORS:
Wealthy
individuals,
foundations
and institutional
investors
What is a Social Impact Bond?

4. US: 7
Australia: 2
UK: 30
Netherlands: 2
Belgium: 1Canada: 1
Germany: 1
India: 1
Peru: 1
Nearly fifty impact bonds up and running
Portugal: 1

5. USA
Australia
UK
Uganda
South Africa
Pakistan
Canada
Colombia
Mozambique
Israel
Swaziland
Mexico
Germany
Ireland
Luxembourg
Belgium
South
Korea
Sweden
Norway
Finland
Estonia
Netherlands
Kenya
PNG
Ethiopia
Argentina
New Zealand
Palestine
Brazil
Hundreds in development worldwide

6. Source: Brookings (2015) The potential and limitations of impact bonds USD millions
UK
Netherlands, Belgium, Portugal
Australia
US
Average size of operational impact bonds is <$5m

7. Adoption
Housing & Homelessness
Health
Employment
Reoffending
Addiction
Policy Issue # in scoping# operational
6 2
9 3
1 13
10 10
1 2
0 2
Totals 6030
Education 0 1
Youth 0 1
Disability 0 1
Family Therapy & Foster Care 3 25
Impact bonds are tackling a variety of social issues

8. Enable
commissioners
to…
Enable impact-
driven
organisations
to…
Enable impact-
driven
investors to….
Focus resources on outcomes
Invest in intervention and preventative services
Stimulate innovation
Have scope to innovate
Grow services
Catalyse entrepreneurial solutions
Link financial returns to social outcomes
Drive
Better
Outcomes
What is their real value?

9. COMMISSIONERS
Governments
and
Donors
SERVICE
PROVIDERS
Impact-driven
organisations
INVESTORS:
Wealthy
individuals,
foundations
and institutional
investors
Putting a value on outcomes
Improve impact measurement and
management processes
Being ‘hands on’
‘Internally, it has given the team a
sharp focus on delivering more
evidence-based provision […] We feel
our more evidence-based approach
has helped in winning new
contracts.’
‘We say we’re here to make a
difference but we don’t know
whether we are or not. Government
doesn’t know whether we are or not.
What’s changing in practice is a
cultural shift within teams. ’
What will it take for impact bonds to flourish?

10. Bridges Ventures LLP
38 Seymour Street
London
W1H 7BP
T: +44 (0) 20 3780 8000
E: info@bridgesventures.com
www.bridgesventures.com
Bridges Ventures LLP is authorised and regulated by the Financial Conduct Authority
Dankjewel!
http://www.bridgesventures.com/impact-plus/

11. Q&A
Emilie Goodall