Social Venture Capital

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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 than providing 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

• Acumen Fund is a non-profit global venture fund that uses entrepreneurial approaches to solve the problems of global poverty
• Do-Gooder Finance Article Article on social venture capital funds in Inc Magazine
• Triodos Bank. Makes equity investments in the UK in enterprises with an explicit social and environmental mission. The only UK equity fund with an exclusively social and environmental remit.
• 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.
• 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.
• Social Venture Partners has 24 SVP regional organizations in 3 countries that train and develop the partners as philanthropists while using a highly engaged philanthropic investing model for local issues and non-profits.
• 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.