At the cutting edge of new social innovation financing are social impact bonds (SIBs), a potentially transformative idea. The deals transfer risk from the government to the private sector and generate new capital to invest in evidence-based interventions that would otherwise go unfunded.
We are excited about the increased interest in Impact Investing on the part of investors. But in order for this burgeoning sector to continue to be successful we need to ensure that we are working together to support the development of the entire ecosystem.
It is not easy to develop a working relationship between investors, nonprofits, and related government funding bodies, but there is potential here to create the kind of partnerships that are needed to make a difference.
The small and medium sector, our privateers, remain becalmed by the lack of bank finance and unable to join the battle. I am confident that it is safe to unleash them yet again, put some wind in their sails and reap the benefits.
For 24 years, the Social Venture Network has been pushing back against the received wisdom of American commerce. SVN members are building better, smarter businesses with multiple bottom lines: profits, planet, people.