1. Welcome
Big Potential at Birmingham April 2017

2. Agenda
10:30 Welcome and introduction Outline of the sessions What is Social Investment? Ceryse Fear Social Investment Business (SIB) Big Potential – Deborah Smart Social Investment Business (SIB)

3. Agenda
Question & Answer session 11:45 Refreshment Break 12:15 Big Potential Grantee Speaker Paul Silvester - Chief Executive, Foresight NE Lincolnshire

4. Agenda
13:00 Workshop on Loan Finance: Investment Readiness from an Investor’s perspective Peter Hughes - Regional Manager Charity Bank 13:45 Next steps with Big Potential 14:00 Lunch, Networking & Close

5. Understand more about Big Potential
Key outcomes
Learn about social investment, what it means; what options are available
Understand more about Big Potential
Be able to access the Big Potential process

6. About social investment
What does it mean and how does it work?

7. Social investment explained

8. Social investment: what is it?
the provision and use of finance to generate social and financial returns
somewhere between philanthropy and commercial investment

9. Social investment: what is it?
investment that achieves a blended return
money invested to create social impact, expecting some or all or more of that money to return

10. Social investment: why?
to buy buildings + other assets
for working capital (financing the organisation’s everyday operations)

11. Social investment: why?
to grow and expand (through new services, products, locations)
to raise money for a new start-up project
to attract new money to the social sector

12. Grants v Social investment
Grants don’t have to be paid back and can be useful if:
You need £ to test an idea
You need £ to continue an activity which can’t be fully self- sustaining

13. Grants v Social investment
You need £ to do market research to find out who might pay
You need £ to help you reach the
point where you can take on
investment

14. Social investment benefits?
FEWER GRANTS
BUSINESS DISCIPLINE
FLEXIBILITY
SUPPORTIVE

15. Investment types (match them up)
Investment through purchase of share capital
Financing public sector outcomes (with non-public sector money)
Long-term debt issued to finance growth
Finance which combines debt + equity benefits
Debt finance borrowed against an asset
Finance for everyday to help with cashflow ‘dips’
Gift with no expectation of financial return
Debt finance not borrowed against an asset
Finance for big short-term cashflow shortfalls
Investment – borrowed + paid back over time
Long-term loans at low / no interest
Working Capital
Equity
Debt
Quasi-equity
Bridging Loan
Grant
Social Impact Bond
Secured loan
Unsecured loan
Patient capital
(Charitable) Bond
Matching exercise 15

16. Investment types (match them up)
Working Capital
Equity
Debt
Quasi-equity
Bridging Loan
Grant
Social Impact Bond
Secured loan
Unsecured loan
Patient capital
(Charitable) Bond
Matching exercise 16

17. Investment types (match them up)
Investment through purchase of share capital
Financing public sector outcomes -with non-public sector money
Long-term debt issued to finance growth
Finance which combines debt + equity benefits
Debt finance borrowed against an asset
Finance for everyday to help with cashflow ‘dips’
Gift with no expectation of financial return
Debt finance not borrowed against an asset
Finance for big short-term cashflow shortfalls
Investment – borrowed + paid back over time
Long-term loans at low / no interest
Matching exercise 17

18. Questions?

19. Social investment market
How does the UK market work?

20. Social investment market: structure
Supply INVESTORS
Government Philanthropists / HNWI Trusts / Foundations Charities High street banks CSR
Demand SOCIAL VENTURES
Social Enterprises Charities Voluntary groups Community enterprise Social Businesses
Intermediary PRODUCTS Loans Investment readiness grants Social Bonds Social Impact Bonds Community shares
Advisors SERVICES Investment readiness Social impact plan Deal structuring Marketing strategy Investor relationships

21. Social investment market: players
INVESTMENT READINESS
SOCIAL FUNDS
SOCIAL LENDERS
SOCIAL IMPACT BONDS
ADVISORS

22. What does ‘investment ready’ mean?
This tends to focus on key areas:
people (skills + experience)
what you do + who your customers are (market)
how you do things + how well (impact / track record)
finances (state / management)

23. Questions?

24. How to apply for grants and support to become investment ready
About Big Potential
How to apply for grants and support to become investment ready

25. What is Big Potential?
Funded by Big Lottery Fund; delivered by the Social Investment Business (SIB) in partnership with Locality, Charity Bank and Social Enterprise UK.
Evaluation by Northampton University.

26. What is Big Potential?
£10m grant fund
Helping organisations consider repayable investment for the first time
For VCSEs in England aspiring to raise up to £500,000 new repayable investment

27. What is unique about Big Potential?
Not just skilling up – opportunity to raise new investment
Access to high quality specialist support – from approved providers with a track record of helping similar organisations successfully raise new investment

28. What does Big Potential offer?
A self-assessment diagnostic tool
1:1 support advisor sessions
Grants (£20,000 - £75,000) for specialist business support to raise investment
Website with resources and information about social investment

29. Big Potential and Social Impact
Your grant application should describe your:
Mission - what are you trying to change?
Beneficiaries - how have their lives changed?
Evidence - how do you know and keep track?
Wider benefit – what else you deliver to the wider community?
And,
Describe how your grant will help to increase your impact

30. Information about Social Impact
Big Society Capital’s Outcomes Matrix - free downloadable tool, explains Outcomes and how to measure social impact.
Many different ways to measure Social Impact – choose the one that is right for you.
Global Value Exchange / New Philanthropy Capital / Social Value UK / Outcomes Star / Inspiring Impact

31. How to apply

32. 1. Check your eligibility
Operating and working in England.
A Voluntary Community or Social Enterprise (VCSE) organisation
Track record of products/services that bring health, environmental or education benefits.
Ambition and potential to raise up to £500,000 (repayable) investment. >

33. 1. Check your eligibility
Potential to develop activities to generate financial and social returns for investors.
Financially healthy + able to meet core costs during lifetime of grant.
Not for religious or political purposes.
May contribute to costs of their project
Action :Visit bigpotential.org.uk to start

34. 2. Complete the diagnostic
On-line self-assessment tool starts the thinking – how investment ready are you?
Questions on 5 key areas - Finances, HR, governance, customers, impact and quality
Action : Visit bigpotential.org.uk/diagnostic-tool

35. Session can be face-to-face / by Skype
3. Attend your 1:1 session
Meet a support advisor to go deeper into your diagnostic tool assessment.
Session can be face-to-face / by Skype
Really understand what it means to be investment ready and what you need to do to achieve it.

36. 3. Attend your 1:1 session
Get a detailed investment readiness report - describing specific business development support needed and full guidance on choosing a provider.
Action : Book and attend an intensive two-hour session with support advisor.

37. Choose (a) preliminary grant or (b) investment plan grant.
4. Apply for a grant
Choose an approved provider to undertake your investment readiness project
Choose (a) preliminary grant or (b) investment plan grant.
Make a grant application to the fund.

38. 4. Apply for a grant
The investment readiness project can start with a smaller development project, followed by a more in-depth Investment Plan project.
Action : Choose your approved provider to prepare the application together

39. The Big Potential Panel makes decisions on grant applications received
5. Start project
The Big Potential Panel makes decisions on grant applications received
Start work on investment readiness project with your provider with the view to raise a new investment.
Action : Accept the grant offer and return required documents to complete grant contract.

40. Provide on-going monitoring information.
5. What next?
Provide on-going monitoring information.
Participate in evaluation of Big Potential and contribute to case studies.
action: Tell us if you are successful in raising investment.

41. Help and Resources

42. Start your Big Potential journey
Online: bigpotential.org.uk
Phone:
Get your copy of the Big Potential programme guidance now!

43. More on social investment
beinvestmentready.org.uk
socialinvestmentforum.org.uk
socialenterprise.org.uk/advice-support/
knowhownonprofit.org/funding/social-investment-1

44. More on social investment
gov.uk/government/collections/social-investment
biglotteryfund.org.uk
charitybank.org
bigsocietycapital.com
action Visit bigpotential.org.uk/accessing-support for more information

45. Big Potential Advanced
The existing programme is known as Big Potential Breakthrough – providing investment readiness grants, for VCSEs seeking future social investment of up to £500K
Big Potential Advanced is an extension of Big Potential Breakthrough.

46. Big Potential Advanced
Provides investment readiness grants for VCSEs seeking future social investment of £500K and above and/or contracts worth £1million and above.
Now open for applications from providers and VCSEs.

47. Thank you!
bigpotential.org.uk