Venture Capital for Social Enterprise

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Like any venture capital organization, Social Capital Partners of Toronto has to separate "exciting ideas" from "worthwhile investments." But that's where the similarity ends. SCP is looking for partners with the will and the way to achieve real social returns as well as financial ones - to meaningfully employ the hard-to-employ as well as compete on the open market. Sean Van Doorselaer explains this selection process and the strategic lessons that it has for the CED sector as a whole.

"There must be a full spectrum of financial vehicles available to social enterprises and CED initiatives. In the same way that a private sector company can choose from a myriad of financial instruments such as bank loans, venture capital, and private and public equity, a social enterprise must have access to different forms of capital, depending on its needs (e.g., unique types of grants, loans, and equity).... this financing must ultimately come from a variety of different sources. Thus, it will be crucial to use government money as a springboard to create new financial vehicles that will help attract other, non-government investors to the sector and meet the unique capital needs of social enterprises."

Subtitle: 
SCP's Approach to the Social Capital Market
Author: 
Van Doorselaer, Sean
Pages: 
4
Publication Date: 
2004
Stock #: 
MW150310
Language: