Social Venture Fund
Last updated 13 May 2020, by Impactyield.
The Social Venture Management GmbH is the initiator of the first international investing Social Venture Capital Fund in Germany. It was founded as a social enterprise in 2010. The aim of the company is the creation of solutions for positive social change, which is not dependent on traditional donations, but rather on a structured and market-orientated approach.
The Social Venture Fund invests in social businesses, which have innovative and entrepreneurial driven solutions for urgent social and environmental challenges. The Fund provides support, when it is not possible to acquire traditional sources of capital. Therefore the Social Venture Fund closes a financing gap and acts as a catalyst for the comprehensive distribution of creative ideas and solutions for the better. The Social Venture Fund‘s goal: preserve and recycle invested capital for future investments.
The fund will focus on investments in developed and developing nations in Europe.
To use the fund’s capital for the most effective social impact, the Social Venture Fund focuses on financing the growth and expansion of already proven and successful social businesses.
The Social Venture Fund believes in the power of capital for social change and in a success orientated approach. As a consequence, social ventures have to undergo a comprehensive selection and verification process (Due Diligence), which is comparable to the traditional Venture Capital approach. Additionally we commit ourselves to the specific characteristics of social ventures (e.g. measurement of the social impact). The distribution as well as the repayment of capital is jointly agreed with the target companies.
The Social Venture Fund will not compromise social returns for higher financial returns. Instead, the management’s aim is to maximize the social effect with adequate financial compensation.
FORMS OF FUNDING
For the majority of the social ventures, the Social Venture Fund uses the full spectrum of funding options: debt capital with participation rights, mezzanine financing (quasi equity) or license fees.
a. Strong Social Impact
b. Financial capacity
e. Criteria of exclusion
of track record
the year funded
Key performance indicators
Asset manager: Social Venture Management
Product track record: Fund has 13 years of track record
Target IRR: n.a.
Committed Capital: n.a.
Target return category: Below risk-adjusted market-rate of return
Fund domicile: Germany
Product status: Open - post first close
Style/Stage: Early Stage, Growth Stage
Inception year: 2010
Vintage year: n.a.
Target region: Developed countries, More developed regions
Target close date: n.a.
Product term: 10 years (+2)
Assets under management: 10,000,000 EUR (Euro)
Investment size: Min: 100,000; Max: 1,000,000; Avg: 0
Currency of investments: EUR (Euro)
Currency for fund / product figures: EUR (Euro)
Fund investments to date: 1
Fund investments to date exited or repaid: 0
Management fee: n.a.
Carried interest: n.a.
Hurdle rate: n.a.
GIIN Investors' Council Investment: No
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: n.a.
Phone number: +49 (0) 69. 60 91 84-15
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PATIENT AND INTELLIGENT CAPITAL FOR SOCIAL CHANGE
As social investors we identify exceptional social entrepreneurs and support them with financial assets and infrastructure. Through making focused investments rather than donations, we strive for both financial and social returns on investment. Invested capital should be preserved to make new investments possible again in the future. In that way only the power of the capital and not the capital itself is used for a positive impact.
With a strong team of entrepreneurs, investment experts and supporters from both science and commercial backgrounds, we work on our contribution for social change on a daily basis.
Felix Oldenburg, MD of Ashoka Europe as well as Mirjam Schöning, MD of the Schwab Foundation are advisors to the funds Investment Committee. Both organisations help the Social Venture Fund in identifying and assessing outstanding investible Social Businesses.