How to find Social Venture Capital Firms and Social Business Funding
Need to Startup a Social Business? Find a Socially Responsible Venture Capitalist
E How has several great suggestions on finding a social venture capital firm:
Step 1 Visit the National Venture Capital Association website to learn more about what qualities venture capitalists are looking for in companies. Ensure your company attracts SRI venture capitalists by assessing your company in terms of your environmental, social and ethical policies. Be able to prove you practice SRI criteria like environmental sustainability, community activism, shareholder participation and that you have a positive work environment with employee benefits.
Step 2 Attend venture capitalists conferences dedicated to investing in socially responsible companies, such as those held by the Investors’ Circle. Present your business to venture capitalists interested in socially responsible investing.
Step 3 Contact a financial services professional who specializes in finding venture capital. Express your desires to focus on those individuals and companies investing in socially responsible ventures.
To learn the other 2 suggestions, visit E How.
Additional Ways to Secure Venture Capital and Social Business Funding:
If you are funding a social business, you may also want to check out Social Funds for their social venture capital directory. I suggest going on Linked in Answers to to someone you trust to help filter the list. If social venture capital isn’t for you or you find it too difficult to secure funding, perhaps peer to peer lending, a new trend in startups is a better fit for you. Entrepreneur magazine recommends Prosper, Loanio, and Lending Club.
Funding Your Social Business with Social Investment Funds
The Wall Street Journal’s article on social venture business funding points to:
Social investment funds, like the Nonprofit Finance Fund, pool together various sources of funding, such as donations from wealthy individuals, foundations, financial institutions and corporations. These funds differ from regular investment funds as they generally anticipate lower than market-rate returns. Their larger motive tends to be advancing social causes instead.
Additionally, some investment funds are aimed at specific disadvantaged regions or populations. For example, the Acumen Fund, a nonprofit global venture fund based in New York, trains its funding eyes on locations in India, Pakistan and East Africa. Yasmina Zaidman, a spokeswoman at Acumen, says that the fund’s social investors are less interested in reaping financial rewards. Instead, she says, “they are looking to invest in philanthropic ventures; the return they’re looking for is the social impact.”
Other suggestions on funding a social business venture???