Social Exchanges may grow rapidly although to date many have been as much hampered by NGO thinking as much as anything but lean mean and efficient markets of this type can really make a difference to development throughout the world. We wish SVx Toronto every success with their venture.
The new Social Venture Connexion (SVX) which opened in Toronto Sept. 19 fills a significant gap in the impact investing marketplace, proponents say.
Access to capital has proven a major challenge for impact ventures, recent studies report. But investors pursuing both financial and social return are also challenged to find the investment opportunities they desire.
“The big challenge has been the high cost of capital and accessing capital for ventures,” says Adam Spence, associate director of the MaRS Centre for Impact Investing, who has headed up the SVX initiative.
“If you were a venture with a triple bottom line it was time consuming, costly and inefficient to be able to get capital. On the investor side, it was similarly time consuming, costly and challenging to find investment opportunities.
“SVX is that single portal where ventures and funds that are looking for capital can connect with investors that are looking to both generate the potential for financial return but also ensure they have a social and environmental impact with their investments.”
The first of its kind in North America, SVX will provide access to a network of more than 100 investors.
Currently, 12 issuers have passed a rigorous review of their governance and management, impact, finances and offer.