Big Society Capital works through roles as:

1. First steps to accessing social investmentWorkshop 1Geetha Rabindrakumar (Big Society Capital)Dan Hird (Triodos)John Williams (Resonance)Ed Siegel (Big Issue Invest)

2. Big Society Capital works through roles as: INVESTOR CHAMPION Grow the social investment intermediary market Increase awareness and confidence in social sector and in social investment Provide affordable and appropriate finance for frontline social organisations e.g. Increase opportunities to showcase social investment and for social sector to connect with finance providers Stimulate creation of investible products for individual and institutional investors e.g. Work with UK and EU governments to encourage appropriate policy and tax support for social investment

3. Role is as a wholesaler: DORMANT ACCOUNTS HIGH STREET BANKS £109m £72m

4. Improving sustainability - Greenway Centre “Installing solar panels has enabled us to reduce our operating costs, so our services remain affordable for the whole community”

5. Scaling with motivated investors - Oomph! Wellness “We wanted investors that shared our values: namely a commitment to strong commercial returns but never at the expense of the health and wellbeing of the older adults we exist to serve”

6. Achieving better outcomes – CPCEs Delivering enhanced care beyond basic needs, with reduced social isolation • 2

7. But…need to consider: NOT replacement for grants and other income Social investment is a means to an end… Options for different organisations (size, legal structure, stage in development) Choosing the right option for short term and long term Understanding risks Internal capacity and capability Visibility of process Impact – demonstrating social outcomes

8. Wider social investment ecosystem BLF Outcomes Fund (£40m) Commissioning/revenue support Secured Loans Unsecured Loans Equity Grant Restricted Grant CO Outcomes Fund (£10m) Type of capital Social Banks (~£180m) Social Investment Funds (~£20m) Fully or partly funded by government Fully or partly funded by Big Lottery Fund Partly capitalised by Big Society Capital Other Tech for Good (£500K) Big Venture Challenge (>£5m) Grant programmes from Charitable Trusts and Foundations (>£2bn) OCS Social Incubator Fund(£10m) BIG Potential (£10m) CO ICRF (£10m) Start up Early Growth Established Stage of business growth

9. Support to prepare for investment • Big Potential (new - first half 2014) • £10m fund over 3 years • For VCSE organisations seeking to raise up to £500k investment (or contracts) • Diagnostic tool assessment to check whether social investment is a realistic possibility • Advisory support (apply jointly with an approved provider): • Preliminary grants to build organisational capability (c£25k) • Investment plan grants (c£45k) • For social ventures seeking to raise over £0.5m investment • Grant (£50k-£150k) to cover cost of capacity building support (application joint with advisory firm – over 35 approved providers) • Currently inviting applications from mutuals and arts ventures, as well as others. http://www.beinvestmentready.org.uk/social-ventures/

10. Coming soon Big Lottery Fund Guide to Social Investment – to be launched May 2014 - Have your say on what would be useful! Focus Group in Leeds 13 March http://www.eventbrite.co.uk/e/social-investment-guide-leeds-focus-group-tickets-10614262545 Submit online queries to BSC investment team

11. Other online information Contact: grabindrakumar@bigsocietycapital.com 1) Sources of funding currently open: http://www.bigsocietycapital.com/sources-investment 2) Directory of social finance providers and advisers (can filter for specific requirements): http://www.bigsocietycapital.com/finding-the-right-investment 3) NCVO guide and tool http://www.fundingcentral.org.uk/Page.aspx?SP=6059

12. For info:

13. What is social investment? It IS: the provision of finance to generate social and financial returns It is NOT: a grant – there is an expectation of repayment of the finance, plus a return

14. Why is social investment beneficial? For INVESTORS For INVESTEES • Fills financing gap for innovation and growth, increasing impact. • Strengthens governance and accountability • Brings in new groups of supporters, and their skills and experience • Capital is recycled for onward investment • Deeper engagement with social sector and community • Helps shape a new responsible form of capitalism

15. Funds in 2014

16. Commitments we’ve made £150m committed Social Loan Funds Social Enterprise Funds Operating Intermediaries Issue Specific Funds Social Impact Bonds Regional Funds

17. Future Developments Community Assets Fund Social ISAs (bond funds) Social Investment Tax Relief ICRF 2 (Cabinet Office) BSC & BIG co-financed initiatives Manifesto development

18. www.bigsocietycapital.com Big Society Capital Limited is registered in England and Wales at Companies House number 07599565.Our registered office is 5th Floor, Chronicle House, 72-78 Fleet Street, London EC4Y 1HY.Big Society Capital is authorised and regulated by Financial Conduct Authority number 568940.