Social Investment challenges and a way to profit from the Great Barrier reef – now that is what I call excellent new thinking which can help SIBs make a real impact on the world for the good of us all!
Have a great weekend,
A group of 30 social entrepreneurs have been selected to take part in Big Venture Challenge – an “investment accelerator” that looks to improve the way investors put their money into organisations that focus on delivering social benefits.
Social enterprise foundation UnLtd selected the final 30 from 140 applicants. The winning enterprises will receive match funding – funds that match the total available from other sources. They will also be supported with investments.
Over the next 12 months, the 30 businesses are expected to attract a total of £4.5m investment.
“Impact investing” achieves environmental and social benefits while generating financial profit. It is more proactive than socially-responsible investing, which avoids negative external factors, because it requires positive and measurable benefits. Globally, the impact investing market is currently estimated at US$9 billion but investors surveyed by JP Morgan on behalf of the Global Impact Investing Network feel that the industry is “in its infancy and growing”. Experts predict a US$500 billion industry globally by 2019.
In the past, the rate of return on impact investments has been lower than the market rate but, in 2013, it is expected to close to market rates of return. (Investors’ expectations and actual financial returns vary widely depending on instrument and region.)
In Australia, a broad range of “first movers” are generating profit by investing in affordable housing, renewable energy, early childhood education, and most famously, a social impact bond in in New South Wales.