The UK is more making boasts to support its own inadequacy on a broad base than through any great breakthrough – yet – on social investment. Akin to comparing the speed of toddlers, it’s self-promoting but arguably not, er, sustainable. but that’s politics I suppose…
We also have a great review of a recent excellent recent webinar too.
Stay tuned we have more news coming throughout the week as SIBs build momentum day by day.
UK Has ‘Most Advanced’ Social Investment Market, Says Government
Charlotte Malone – blue & green tomorrow
The government has described the UK as the “most advanced social investment market”, in its 2014 progress update which looks at how the market is growing and being supported.
The update unveiled an investment of £60m to help high potential social ventures that struggle to access finance to become investment ready. It is hoped the fund will benefit enterprises by building their capacity to bid for social investment. The fund is based on a £10m pilot, which saw the ventures involved raise £39 for every £1 of government grant.
The Social Impact Bond (SIB) market has recently gained tremendous momentum. Today, there are four SIBs operating in the United States—channeling $50 million in capital to the social sector—and at least two dozen additional states and counties actively pursuing SIBs in their respective jurisdictions. SIBs are also garnering significant attention in the international arena. However, despite the progress achieved to date and media buzz generated by this innovative financing mechanism—there is even a daily global online SIB newsletter—SIBs have yet to achieve proof of concept.
On June 4, the Stanford Social Innovation Review hosted a webinar titled “Social Impact Bonds: From Concept to Reality” to identify what steps will likely need to be taken in order for SIBs to become a well-established, widely-accepted option for funding social interventions at scale. The session featured Social Finance CEO Tracy Palandjian and Sam Schaeffer, the CEO and Executive Director of the Center for Employment Opportunities (CEO).
Tracy delivered an overview regarding the state of the domestic SIB marketplace, focusing particularly on the nation’s first state-payor SIB, a transaction focusing on reducing recidivism and increasing employment in New York. However, she warned that this is not the only appropriate SIB model because at this still-nascent market stage, each deal is unique. “If you’ve seen one SIB,” she said, “you’ve only seen one SIB.”