SIS Ventures unveils £5m ‘profit with purpose’ fund

● Fund to back Scotland’s high impact enterprises ● Aimed at firms looking to tackle social problems

The new investment arm of one of Scotland’s biggest social investment finance intermediaries is launching its first £5 million fund to back Scotland’s high impact enterprises.

SIS Ventures, part of Social Investment Scotland, which is the largest organisation of its kind north of the Border in terms of lending, is to offer investors a portfolio of up to 12 high-growth potential, highimpact enterprises which aim to tackle a clearly identifiable social problem through a disruptive business solution.

The organisation is seeking to raise £2m from Uk-based private investors, with the capital targeted for deployment over the next 12 to 18 months.

A recent market study by SIS revealed that entrepreneurs feel that existing earlystage investors often overlook social impact and values are not always aligned.

It is hoped that the project, called Impact First, will provide capital to fuel a growing desire by these entrepreneurs to develop and grow their business with a mission-led approach.

The fund is the first to be established by SIS Ventures, since its approval in April, under the chairmanship of Bill Crossan.

Thomas Gillan, director of SIS Ventures, said: “Creating a fund which offers a portfolio of both debt and equity provides investors with a unique vehicle to invest in high growth potential, socially-focused businesses offering both a financial and social return.”

He added: “We know there’s appetite on the part of investors and early stage enterprises for such a fund, and we’re confident we’ll receive significant interest. Investors now have a chance to become part of something truly groundbreaking and really move the needle for social impact investing.”

Bill Crossan, chairman of SIS Ventures. said: “The world of business and, particularly enterprise, has evolved in recent years.

“A new breed of entrepreneur has emerged looking to make money but also, more importantly, looking to make a difference. The main problem to date is that there has been very little investment capital available for such enterprises.

“With our new fund, social entrepreneurs will have the opportunity to access both debt and equity funding, with the aim of scaling up their operations and maximising their social impact.”

Social Investment Scotland was established in 2001 to provide a new finance model for Scotland’s charities and social enterprises and has since invested more than £60m across Scotland.

Social Investment Scotland also helps to manage funds on behalf of third parties with any profits being re-invested into social business development in Scotland.

The organisation has a range of funds that cover both small organisations seeking smaller loans and larger organisations looking to scale up.