‘Profit with purpose’ fund is halfway towards first close in just two months

Posted on 08/08/2018

Impact First, the ‘profit with purpose’ fund launched by social impact investor SIS Ventures, has secured 50% of target capital commitments within the first two months of launch.

Mission-Led Venture

SIS Ventures, the mission-led investment arm of responsible finance provider Social Investment Scotland (SIS), is in the process of securing investors to participate in a £5 million fund, which looks to back Scotland’s high impact enterprises.

The first close of the fund seeks to raise £1.5-2 million from UK-based private investors, with the capital target for deployment over 12-18 months.

Since launching two months ago, SIS Ventures has managed to secure 50% of the initial capital commitments from private investors seeking to generate both a social and financial return. SIS Ventures has also experienced an excellent response from mission-driven organisations seeking funding and have identified a preliminary cohort to invest in.

Benefiting from both the Enterprise Investment Scheme (EIS) and Social Investment Tax Relief (SITR), Impact First offers investors a portfolio of between six and twelve high-growth potential, high-impact enterprises. These enterprises, however, must be aiming to tackle a clearly identifiable social problem with a scalable and disruptive business solution.

This innovative fund allows entrepreneurs with an ambition to make a difference whilst growing their business, to have access to mission-aligned investment through debt and equity investment; delivered by SIS Ventures.

A market study, undertaken by SIS, revealed that entrepreneurs felt that existing early-stage investors often overlook social impact and that values are not always aligned. It is hoped that Impact First will provide capital to fuel a growing desire by these entrepreneurs to develop and grow their business with a mission-led approach, resulting in a more sustainable economy.

The Impact First fund intends to prove a fundamental thesis; that profit and purpose can be aligned using an outcomes-based investment strategy. If you’d like to invest or learn more about Impact First, please contact Thomas Gillan, SIS Ventures Director, at thomas@socialinvestmentscotland.com.

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