Nesta Impact Investments 1 LP

Nesta Investment Management LLP is a venture capital fund manager subsidiary focused on impact investments, and is wholly owned by Nesta - the UK's innovation foundation.

Nesta Impact Investments is a £25m investment fund investing in innovative ventures that address three major social needs in the UK:

• an ageing population;

• the learning and employability needs of children and young people; and

• the social and environmental sustainability of communities.

The fund is focused on substantial social challenges in the UK, which are more pressing at a time of constrained public finances and a weak economy. There is a need for innovation to deliver more effective products and services to address these needs at lower cost.

Such innovation requires risk capital to enhance its impact.

The fund's Investment Objective is: (i) invest in ventures whose products and services address the fund's target outcomes within these areas of social need; and (ii) to generate returns for investors.

Financial description

The fund intends to make medium term equity, quasi-equity and debt investments in approximately 20 organisations:
• whose products and services have positive impact on one or more of the Partnership’s Target Outcomes;
• where innovation and often technology are at the core of the product / service;
• with strong business models that are able to generate reasonable, sustainable returns on capital;
• that are achieving, or have the potential to achieve, impact and public benefit in the UK by providing products or services that are inclusive, accessible and affordable;
• that can provide increasing depth and strength of evidence of their contribution to the Partnership’s Target Outcomes and who rigorously measure their on-going performance;
• whose approach is scalable to meet a significant proportion of the need they address; and
• with a strong management team capable of delivering on ambitious plans.