Building a business is hard. Getting the funding you might need is tough. But, as you know, when your business satisfies a social or environmental need, your options for funding are even scarcer. One of the things I hear a lot from social entrepreneurs is the tough time they have finding people willing to fund them. Traditional investors see the social component of their business as a discount on return on investment. If there’s a financial cost (short-or long-term) of the business’ social component, it’s viewed as a lousy investment choice. For-profit social enterprises are also excluded from foundation and donation-based funding sources.
There’s a small pool of social venture firms that evaluate a business on its social and environmental performance as well as its financial success. Who are these firms, what types of social enterprises are they looking to support and how can you connect with them? I spoke with Kevin Jones, co-founder of Good Capital and the SoCap Conference to bring you answers to these questions. You can listen to the interview here. This post was prompted by an email I got this morning from a women looking for funding options for her social enterprise. Below are some progressive new firms funding amazing work and seeing great returns.
Based on suggestions from you, I’ve written about 10 more social venture capital firms.
- Acumen Fund: Focus on solving problems of global poverty through loans and equity in India, Pakistan and East and South Africa.
- Big Issue Investment: Focus on medium-term growth capital.
- Calvert Group: Early, direct investments.
- Central Fund: Strong focus on sustainable jobs for low-income populations; services for distressed communities.
- City Light Capital: Early stage, social mission-driven companies; focus on good financial returns.
- Clean Technology Venture Capital: Invests in mid-sized alternative energy companies with promising exits.
- First Light (an iniatitave of Gray Ghost Ventures): Incubator and investment partner to seed-stage, for-profit social ventures
- Good Capital: Expansion fund; high-engagement, hands-on investment partner.
- Gray Ghost Ventures: Early stage enterprises focused on low-income communities in emerging markets.
- Investors’ Circle: Investors’ Circle matches social entrepreneurs with its circle of angel investors.
- Root Capital: Focus on grassroots businesses in rural areas of developing countries.
- Shared Interest: Invests in fair trade businesses.
- TBL Capital: Focus on social enterprises in consumer products, service providers, software, clean technology, green building, health and wellness, and retail.
- Triodos Bank: Equity and debt fundraising; Social Enterprise Fund and EIS Green Funds.
- Underdog Ventures: Focus on natural and organic food, environment and conservation, socially responsible consumer products, and socially responsible investment companies.
If you or your firm invests in high-impact social enterprises and should be listed here, send me an email, olivia[at]causecapitalism.com, or post it in the comments.
Possibly related posts:
I'm Olivia Khalili. I created Cause Capitalism to show you how to grow your business by incorporating a social mission. 
Wow, thanks so much Olivia! I have just started reaching out into my network and this list is beyond my wildest dreams of what could be put together. I really appreciate your blog post.
Kristen
Kristen, it was a great question–I should have posted this list earlier. Good luck and stay tuned for Kevin Jones’ post next week.
I agree with Kristen, WOW!
Great list, thank you!
Thanks Chris–I really hope it helps. If you come across any others (or I’ve misrepresented here), please let me know.
A Little about the executive director Mr.Musoke Robert is one of the pioneer of Solar Power Agencies (u) Ltd .Electricity geared at environmental protection was working with one of the solar company as a manager for Eastern and Northern Uganda ,for four years saw that there was need for solar power energy in rural areas of Uganda where hydro has not yet reached. Since l had the experience from Energy Systems (U) Ltd.l decided to open my own company in the names of solar power agencies (u) Ltd.l resigned from my former company and started my own business. Am currently the founder of foundation for Uganda Christian Youth Development Association (FUCYDA) working in Eastern and Northern Uganda.Fucyda also works hand in hand with Solar Power Agencies (u) Ltd to market and advertise for solar business since it has the same objective of the rural electrification in Uganda.
Am a Ugandan by nationality, comes from Bwikwe district one of the new district which has just come from Mukono district and now l reside in Mbale district where l work from.
1) My Challenge was marketing.
Most of the rural people were illiterate about solar business. Since l opened the office l trained them about usefulness of solar power energy and how it works, they got interested and am in business.
2) Another challenge was capital.
l had no enough capital in my business but l got some from my customers and with my little savings from where l was working, then l used these capital to expand the business but l need more capital to expand my business have got so many clients who would wish to pay 30% of the total cost of the system to be installed; and then pay the remaining balance of 70% at monthly basis.
3) Challenge l experience in getting inputs
Exorbitant prices/profits from suppliers are so high.
Transport from Kampala to Mbale and up to sites in the rural villages.
We have never got credit yet we offer credit to clients.
THE EXISTING SITUATION
Currently most of the areas where we operate from in Eastern and Northern Uganda are off grid and the existing source of power is generator ,torches, poor and dangerous paraffin, candles, kerosene etc.
OBJECTIVES:
1. To offer affordable opportunities to everyone who applies for power systems.
2. To extend solar loan support to applicants at affordable rates.
3. To train urban and rural communities and market Solar systems and its components.
4. To stock all solar equipment and accessories for immediate supply to consumers when ordered.
5. To market, design, sell, install, train and maintain Solar and other renewable energy systems for our clients.
6. To training executives on how to market the products and technicians who are to install Solar systems.
This project is to supply individual alternative Solar Energy to customers.i.e homes for lighting and other low power consumption needs; TV, radio phone charging.
Offices-to power lights, computer systems and small networks .restaurants to provide buck-up power for lighting and music, schools for lighting and computers. Health centres, medical clinics and drug shops for lighting, cooling blood and vacancies. Stores for lighting.
1(A) BACKGROUND:
Solar power agencies (u) LTD. (SPAUL) is a private limited company founded and incorporated in Uganda by Ugandans and incorporated after a careful assessment of the rural community basic energy needs in the light of urban and global development trends. SPAUL was legally registered and incorporated in the year 2003 by the registrar of companies ministry of internal affairs in the laws of Uganda.
The company is designed to procure, supply, install, maintain and train in solar power systems and appliances. Its area of operational services is mainly in eastern and northern Uganda regions with head office located in Mbale town Opposite Grace Senior Secondary School Plot 32 Business House, Republic Street.
2 (B) SOLAR POWER BOOSTING FAMILY IN INCOME
To many users, of solar power energy systems/ solar lanterns productivity tool. The wide area light lets entrepreneurs of all kinds extend their working hours past nightfall, creating new earning opportunities .To the right, Mr.OKIA of Soroti shows off part of his large agricultural yield, harvested at night in Soroti District, by the light of solar power system we gave him.
2) Creating bright, healthy home environments.
Former Dr.of Mbale municipality uses solar power at home in Bungokho sub county Mbale district, the bright light is a huge help in the house .He says for reading and for TV set ,radio, phone charging etc. He used to light candles, while dim and expensive, they don’t emit the accrid harmful smoke of the kerosene lantern. The solar power yields much brighter light and frees families from that smoky kerosene haze.
Like many children in Bulegen parents P.o Box Sironko District Tel: 0701667676/0703915787.
These students in the village of Bulegen attend school after dark. The children struggled to study by the flickering light of kerosene wick lamps, while the stinging smoke assaulted their eyes and lungs. Now equipped with solar power from our office and now students enjoy greatly improved lighting, using just two bulbs to provide for better light for the entire class.
SOLAR ENERGY BUSINESS:
The solar energy business will help to promote the rural electrification where electricity has not yet reached in Uganda.
This business shall be implemented by (SPAUL) competent company to train the youth in solar power systems installation, maintenance and repairs in individual house, schools and other institutions.
The business will also be involved in rural information technology thus computer training for the youth. It is a long term business that will be implemented in phases depending on the availability of equipment and resources of which the business is seeking for funding.
THE NEED
The rural population in Uganda is still clung to old methods of lighting and cooking e.g. using lit burning torches, poor and dangerous paraffin candles that produce inhaled dark and thick smoke affecting health. The traditional methods therefore of three stones does not keep heat in one place and consumes a lot of fuel and time when cooking while the person cooking with dangerous smoke inhaled and affects eyes too. Hence a need to replace old lighting and cooking methods with the modern low cost and fuel saving solar energy and biomass. When supported/funded, the business will have at least 300 youths trained and 250 homes using solar energy in the first phase in Uganda.
REQUIREMENTS:
lnitially the youth will be trained in smaller groups of 20-30 participants. This can be increased as more facilities become available.
The skills to be imparted will include:
a) Solar power systems how they work
b) Solar power system installations.
c) Marketing solar power
d) Training technicians
Computer knowledge is becoming more and more one of the requirements of today’s office workers and in business activity. So there will be a computer department for the basic training in computer packages and IT.
After being in this field for over (8 years), Solar Power Agencies (u) Ltd has gained experience and developed a super ability to provide products with high quality and competitive prices, built sound business networks in several countries and has established firm cooperation relationship with its global partners.
SPAUL markets products from USA, Spain Netherlands, Germany, South America, Japan. Solar Power Agencies (U) Ltd has been successfully undertaking projects like “providing electricity to the sub counties in Moroto district, schools, health centres homestead churches etc in the country of Uganda and installed over one hundred [ 100] individual solar systems.
Based on the nine years (9) experience, Solar Power Agency (U) Ltd has been trying its best to commit itself to the cause of energy-saving and environment protection by developing innovative clean energy products. Right now, Solar Power Agencies has got an excellent reputation and has been trusted by the customers and partners throughout the country, because of its commitment to customers’ satisfication, environmental conservation individuality, and team work. (SPAUL) management philosophy is to use collective skills to meet challenges within innovative and creative energy-saving solutions.
SPAUL’S GOAL FOR THE FUTURE
Is to continue to provide the country with classic products and services to make this country a better place for the human race.
REQUIRED SUPPORT
The project is seeking for support to acquire solar equipment and accessories i.e. Pv solar panels, solar batteries ,regulators,inverters,Dc bulbs,wires,etc.Training and technical support the stock of required systems whenever the consumers demand for them there is already demand and the supplies of equipment are not sufficiently available in the area. Many systems installed over ten years ago are not working and are in need of replacing, servicing and maintenance support.
When supported, this business will attract very many clients in rural communities .Hence more supplies and business expansion.
SO FAR TO IMPROVE MY BUSINESS
I have procured computers printers bought car, installed office telephone, connected to internet, bought furniture in office ,l give brochures, business cards, customer advertise on our behalf after services given are good.
THE TECHNICAL SKILLS l USE IN BUSINESS.
The electrical installation skills experience in business, some business administration, marketing skills, clients make orders and we quote for them, inspects sites
l verify products for quality by measuring there standards
l buy from re-known suppliers of quality.
l am trained in identifying good equipment.
l use products with certification documents and warranty from manufacturers like German, USA, Japan, Australia, etc
THE MANAGEMENT STRATEGY TO MAINTAIN CONSISTENCY SUPPLIES IN MY BUSINESS
ls that l make sure that clients must always pay 50% down payment which l use to supplement to offer the services.
PARTNERS:
This project with the line Government Ministry, Private Sector foundation and Uganda National Chamber Of Commerce Uganda Investment Authority and Industry; GTZ; and suppliers.
SALES AND MARKETING STRATEGIES:
1. Aggressive marketing will be carried out as follows;
2. Training kits and supply of brochures, workshops held in market potential centres.
3. Public campaigns for knowledge and good public relations.
4. To reach people who have houses, hospitals, churches,shops,salons.restaurants,bars and hostels, billboards advertising,brochures,demonstrations at shopping centres and displays at trade fairs and other public shows; radio and TV programmes and advertisements
STEPS OF IMPLEMENTATIONS
1. Acquisition of required solar power components
2. Training of trainers
3. Establishment of skilled staff
4. Identification of potential consumers and sales/marketing personnel
5. Aggressive advertising and marketing
6. Sales, installation, repairs and maintenance of solar power systems
7. Sales and marketing evaluation.
INNOVATIONS:
1. New consumer retail demands in relation to technology.
2. Market approach and sales expansion.
We the Amo Finance Group invite you to partner with us and benefit in our new Loan and Project funding program. We offer flexible loans and funding for various projects bypassing the usual rigorous procedures. This Funding program allows a client to enjoy low interest payback for as low as 3 – 4% per annum for a period of 5-7 years.
We can approve a loan/funding for up to USD 500,000,000.00 or more depending on the nature of business. We are currently funding for:
* Starting up a Franchise
* Business Acquisition
* Business Expansion
* Commercial Real Estate purchase
* Contract Execution
We are open to having a good business relationship with you. If you think you have a solid background and idea of making good profit in any venture, please do not hesitate to contact us for possible business co-operation.
Email: amofinancegroups@gmail.com
Amo Finance Group,
Abu Dhabi,
United Arab Emirates
Olivia,
Thank you for posting this list as a reference guide. Like you, I have been working in the non- profit realm as well as international development. A young professional with a business degree, I am seeking to transition into social venture capital and am challenged to find a firm or venture within a firm’s portfolio which has an entry-level analyst position. Do you know of any firms with formal fellowship programs other than LGT’s iCat program (to which I applied)? With your experience in blending sector experiences, I would value your insight and knowledge.
Kind Regards,
A
JK Investment Consultancy, LLC, founded in 1999, we boast of great difference in development programs In the COSTA RICA & USA & EURO & ASIA and different part of the world. Our History reflects and is based on our balanced development and economic and social consistency of commendable clients. Our Investment and financing/ Loans Programs are ways that can help to ensure we make a difference in companies productivities in different parts of the world , by rendering Project Loans, SBLC, LC, BG , Project Financing, Venture Capital for only (GENUIN PROJECT) , such as follows new Cut BG/SBLC for Lease from Top Hong Kong & European Banks at 6+2 which are specifically for lease, our bank instrument can be connected with PPP Trading, Discounting, signature project(s) such as Aviation, Agriculture, Petroleum, Telecommunication, Dams & Road & Building & Bridges& Real Estate construction (ETC). Funds are deposited into a Top World Bank in the client’s name. Account in client’s name, signature authorization 100,000 to $1 billion Bank Comfort Letter Tear Sheet Dual Private Banker’s Signatures Block / Reserve Funds Letter 60 day account with discount renewals Fees need to be paid in advance to a third party escrow agent
Guarantee Enhancement to legal and commendable customer’s involved in project development in all regions of the world by raising substantial volumes of funds on the capital market which it credit on favorable terms to projects furthering USA & EU policy objectives. We are also a member of International Business Summit. Mr. A. Augusto Is the founder of the JK Investment Consultancy, His profession and academic qualifications are a Bachelor of Science in Finance Management, a Masters Degree in Economy and a Masters Degree in Project Management in Costa Rica, Switzerland and also in USA, he is currently based in the USA and Costa Rica. For more information contact us! Contact admin Dept of Email: augustus@admin.in.th Fax: 01(206)-666-2238 Skype: jkconsultancy1 Location: Costa Rica JK Investment Consultancy post management
Hi Olivia,
Great read! I also wanted to introduce to you and your readers – ennovent a venture catalyst that accelerates innovations for sustainability at the base of the economic pyramid. We work with a global network of entrepreneurs, investors and experts to discover, finance and scale up the best innovations. We envision a world in which disadvantaged people in underserved markets have an equal opportunity to sustainable living.
Ennovent’s “Sustainable Enterprise Fund (SEF)” invests in sustainable, for-profit enterprises that make a sustainable impact on the Indian BoP markets. The SEF recently made its first investment in Barefoot Power, a global, social for-profit enterprise that manufactures and distributes solar-powered lighting products. Read more here – http://www.ennovent.com/fund/fundDetails/page/fund_overview
Ennovent has also recently launched its “online global network” (www.ennovent.com) that connects entrepreneurs, investors and experts to share resources and work together to promote for-profit innovations for sustainability at the Base of the Pyramid (BoP).
Hope this information is useful for those interested to learn more about this space.
Best,
Archana
We are Rowland & Co Consultant and Broker Firm London-U.K, we have a direct genuine provider for BG/SBLC for lease.
If you are interested you contact us through our direct email: rowfundinghouse@gmail.com
i love this article! Thanks so much! Do you think my social entrepreneurship business model is a good idea? It’s a housecleaning company. A percentage of profits will be donated to help fund vocational schooling 4 poor parents living in gang-dominated, dangerous areas. My focus is Watts initially! Would this business model be attractive to any VC firms? Thanks!
Take a look at Vancouver, BC based Renewal2 Fund. $35m first
irst social venture fund in Canada and Usa. See RenewalPartners.com for our roots.
Take a look at RSFSocialFinance.Org in San Francisco. Deep values lenders. Associative economics roots. I’m an Entrepreneur in Residence at RSF.
Thanks for writing about our pioneering sector. Ten more years will see dramatic growth.
Joel,
Thanks for the additions. I created a second list, shortly after the first, which includes Renewal.ca. Would love to hear about some of the investments RSF is making and trends in models or sectors you’ve identified.
Thanks,
Olivia