Social Investment Room FAQs
What is social investment and how is it different from traditional investment?
Social investment is repayable finance that aims to deliver both financial returns and social impact. Unlike traditional loans that focus solely on financial returns, social investment supports enterprises that create positive social or environmental change while also generating sustainable revenue.
Who provides social investment?
Social investment can come from:
- Social investors (trusts and foundations)
- Impact investment funds
- Social finance intermediaries
- Community development finance institutions (CDFIs)
- Social banks
- Some traditional investors focused on ESG (Environment, Social, and Governance)
- Commercial banks
- Angel Investors
What can I use social investment for?
Social investment can be used for:
- Working capital to manage cash flow
- Capital to purchase equipment or property
- Expanding into new markets
- Hiring new staff
- Developing new products or services
- Restructuring
How do I know if my social enterprise is ready for social investment?
Your enterprise might be ready if you:
- Have a clear social mission with measurable social impact
- Have a sustainable business model (you generate sufficient income to cover operating costs)
- Can demonstrate demand for your product/service
- Have financial projections showing your ability to repay the required investment
- Have strong governance structures in place
- Have a dedicated team capable of managing growth
