Social Venture Capital

From Wikipedia, the free encyclopedia

Social venture capitalists are different from traditional philanthropists in that, social venture capitalists usually assume a more direct, more hands-on role as an owner with shared responsibilities in socially positive ventures. For example, social venture capitalist may use equity financing in funding the creation of especially-viable microenterprises rather subsidized loans, grants or other forms of financial assistance. Traditional venture capital funds are run by managers who seek much higher rates of return on investment from investments that are usually accompanied by extremely high amounts of risk, uncertainty and ambiguity. Thus, venture capitalists earn high returns by understanding and managing risk as they guide a venture through a series of projects involved in the formation of a profitable firm. Social venture capitalists are similarly well-acquainted with risk and project management activities, although social venture capitalists will restrict their field of interest to those ventures whose rate of return is measured in terms of those metrics which best reflect the magnitude of socially positive results.

[edit] External links

• The Social Venture Capital Foundation (SVCF) provides modest seed money/entrepreneurial support grants to help these social entrepreneurs bring about the changes that our country and our world need. The leadership and support network of the Social Venture Capital Foundation provide precisely the management support and entrepreneurial counsel that non-profits need to turn socially valuable new ideas into executable plans. SVCF management consulting support assists in network building, strengthening leadership, and building organizational excellence.
• Journal of Microfinance, a forum for practitioners in microfinance and microenterprise development to exchange information and ideas
• Calvert Social Venture Capital Funds invest in high-risk, socially and environmentally responsible enterprises. These companies provide market-based solutions to some of the more difficult social, environmental, and health problems facing society today. We hope these long-term venture capital investments will generate a greater return not only for our investors but for future generations as well.
• The New Economics Foundation Social Venture Capital Fund investigates the finance needs of social enterprises and examining emerging practices amongst social enterprises and finance providers - including a more sophisticated use of grants and loans, and a need for 'patient' equity.
• Venture Philanthrophy is a Google^TM Directory of prominent social venture capital funds or projects
• Venturesome Fund A supplier of risk capital to charities and social enterprises in the UK.
• Official launchpad for startups seeking VC A service to bring startups access to Venture capitalists