1. Impact investing tools in europe IV Spring Meeting on Social Entrepreneurship, Social Finance and Depopulation in Europe 9th may 2018

2. Index What is EVPA? Challenges in the social investment market
Hybrid Finance: a way to address these challenges
Innovative solutions: hybrid financing vehicles
A European Commission initiative

3. OUR COMMUNITY AND THE VP APPROACH
1. WHAT IS EVPA
OUR COMMUNITY AND THE VP APPROACH
How many, type of members, countries, support what type of orgs, provinding what whit which approach + 3 strategic objectvise:
Increase funding and expertise coming into the Venture Philanthropy and Social Investment space
Increase the effectiveness of Venture Philanthropists and Social Investors
Co-create a well-functioning ecosystem for societal impact

4. CHALLENGES for VPO/SIs
2. CHALLENGES IN THE SOCIAL INVESTMENT MARKET (1/2)
FROM THE VPO/SI‘s POINT OF VIEW
CHALLENGES for VPO/SIs
Lack of investable opportunities for VPO/SIs
Difficulty in launching sizable social investment funds
High transaction/structure costs

5. 2. CHALLENGES IN THE SOCIAL INVESTMENT MARKET (2/2)
FROM THE SPO‘s POINT OF VIEW
(Source: Bolis et al. 2017) 

6. 3. HYBRID FINANCE: A WAY TO ADDRESS THESE CHALLENGES (1/2)
THE DEFINITION

7. 3. HYBRID FINANCE: A WAY TO ADDRESS THESE CHALLENGES (2/2)
THE OBJECTIVES

8. HYBRID CO-INVESTMENT FUND FOR EARLY-STAGE SOCIAL ENTERPRISES
4. INNOVATIVE SOLUTIONS: HYBRID FINANCING VEHICLES (1/2)
THE EXAMPLE OF FASE
HYBRID CO-INVESTMENT FUND FOR
EARLY-STAGE SOCIAL ENTERPRISES
In Germany, the Financing Agency for Social Entrepreneurship (FASE) is setting up a hybrid co-investment fund to serve a specific segment of the VP/SI market: early-stage social enterprises. The fund would provide moderate financial returns (i.e. 2% to 5% across different investment tranches).  The volume foreseen for the fund is € 20 million to support about 80 social start-ups over a five-year investment period. Mezzanine capital and/or equity over the duration from 5 to 6 years will be the financial instruments deployed through the fund. The fund will have a multi-layered structure, which will combine hybrid capital: bringing philanthropic, public and social investment actors together.
One important characteristic of the SEs that the fund also takes into account is the maturity or development stage. Young start-ups with an initial proof of concept of both the business and the impact models, which have to scale their product or service to gain a foothold in the market, need between € 100k and € 500k in capital. Mature start-ups already successfully persisted in the market in both the business and impact dimensions, typically require above € 1 million to continue growing.
More info at:

9. 4. INNOVATIVE SOLUTIONS: HYBRID FINANCING VEHICLES (2/2)
OTHER EXAMPLES IN OUR REPORT

10. AN EC GRANT TO SUPPORT SOCIAL INVESTORS
5. A EUROPEAN COMMISSION INITIATIVE UNDER THE EaSI ROGRAMME
TRANSACTION COST SUPPORT FOR SOCIAL ENTERPRISE FINANCE
AN EC GRANT TO SUPPORT SOCIAL INVESTORS
The grant serves as an incentive for making investments of below EUR 500k in social enterprises, covering some of the transaction costs incurred by intermediaries e.g. travel expenses, lawyers' fees, due diligence and business development support-related costs.
1st pilot call for proposal, launched in 2017  2 projects selected so far, further applications are under currently evaluation
2nd call for proposal is planned to be launched during 2018
(Source: DG EMPL, 2018) 

11. EVPA KNOWLEDGE CENTRE IS KINDLY SUPPORTED BY:

12. Thank you for your aTtention