julie wake sib newcastle roadshow event presentation

Julie Wake

Head of Investments

Investment and Contract Readiness Fund

• Developing demand for investment for growth– need for more investment ready social ventures

• £600m injected into the social investment market by wholesaler Big Society Capital

• Open Public Services 2012 – transformation in contracting opportunities for social ventures

• Six financial intermediaries account for 90% of the market* - need for diversification, strengthening and growth

Context and need

*Source: Boston Consulting Group 2011

• Help charities, social enterprises, mutuals, social businesses and other social ventures get ready for social investment, seek and secure social investment and compete for public service contracts

• Diversify and strengthen the investment and contract readiness market

• Build a social corporate finance sector for the UK• Consciously self-interested strategy: ventures,

providers and investors

What will the Fund do?

About the Fund

• £10m from the Cabinet Office• £50,000 to £150,000 currently grants, may introduce

some repayable elements• Seeking to make approx. 130 awards• Applications open till at least September 2013 • 3 - 18 month investment/contract readiness plans

www.beinvestmentready.org.uk

About the Fund

• Social ventures seeking to raise investment of at least £500,000 or win contracts of at least £1million

• Investment and contract readiness programmes of 3-18 18 months

• Budgets of between £50,000 and £150,000 to purchase specialised investment and contract readiness support and to cover some of the costs of putting the investment/contract readiness plan into action

• Ventures based in and working in England• Compliant with State Aid regulations• Neither religious nor party political in nature

Criteria: Who can apply

• Big Society Capital (chair)• Big Issue Invest• Big Lottery Fund• Bridges Venture• CAF Venturesome• Deutsche Bank

• FSE Group• Natwest• NESTA• Panahpur• Triodos Bank• The Social Investment Business

Investors Panel: At the heart of the Fund

• The fund is focused on enabling social ventures to access specialist support from an approved investment/contract readiness provider

• Providers have a track record in supporting social ventures to secure social investment or win contracts

• Creating a partnership approach to developing, delivering and managing investment and contract readiness plans

Providers

• 26 providers – big and small • Sector players like ACEVO, Locality, ClearlySo,

Resonance, Social Finance, Triodos, Impetus Trust • New entrants from the social sector like Pulse

Regeneration, inspire2aspire, Bridge Consulting, Bidright, Social Enterprise Support Centre

• New entrants from the commercial world like Banks Cannell LLP, Claridge Capital, Deloitte and PwC

Providers

Applying to the Fund

Discuss proposal

Approved provider

Application Process

Social ventures looking to grow and business advice providers with a track record in investment or contract readiness work can apply.

Apply

Find a provider

Apply for approval

Experience in providing

investment/contract readiness services?

Looking to raise £500K investment or win £1m contract?

• No deadlines - Applications will be considered on a rolling basis

• Providers and social ventures need to apply in partnership

• Download form and guidance from the Fund website

www.beinvestmentready.org

Applying to the Fund

• History, key achievement and development• Analysis of current position• Past, present and projected financial position• Development analysis and needs• What your investment and contract readiness project is,

why can’t you secure investment/contracts now?• Quarterly milestones and budget• State Aid

About the application

Tips

• Be self-aware and frank• Be ambitious and brave• Clear identification of barriers and risks and response to them• This is additional funding for investment or contract readiness – it’s

not a fund for overhead costs or existing services/provision• Success fees are not fundable but are encouraged• Grant is split 60:40 providers: venture• Explain why this cannot be funded from reserves/balance

sheet/income• Bear in mind the panel are looking for value for money• Focus on the specific progress toward investment/contract

readiness. Name target, maintain line of sight to outcome – IP now quick to reject generic capacity building application

Something to think about…

• Looking to take over an existing public service in your local area?

• Want to buy or manage a local building or land for community benefit?

• £26m Community Rights Grant Programme

www.thesocialinvestmentbusiness.org/our-funds/

Not for you?

Thank you!

www.sibgroup.org.uk

enquiries@sibgroup.org.uk

Tel: 0191 261 5200

Julie Wake

Julie.Wake@sibgroup.org.uk

0191 269 2850