Rachael Chong put together the most comprehensive list of startup capital options for social entrepreneurs that I've ever come across. Click here for the full article. Rather than rehash her work, I'll spotlight two sources that are new to me: Unreasonable Institute and Good Capital. Descriptions of both organizations come directly from their websites.
All ventures must effectively address a social or environmental issue, be financially self-sustaining within 1 year, have a model which can be scaled out of the country of origin within 3 years, and must eventually meet the needs of at least 1 million people.
The Social Enterprise Expansion Fund provides equity and equity-like growth capital to social enterprises that are ready to expand. We target social enterprises (both for profit companies and nonprofit organizations with earned income) with scalable business models that have the potential to create systemic and large-scale social change and generate an attractive return for investors who have the right kind of human and financial capital. Because we are at the forefront of the emerging social capital market, we have access to the best social investment opportunities in this space.
GoodCap is a hands-on investment partner, providing our portfolio companies with not only financial resources but also the human capital and strategic help they need to achieve their social missions and financial goals. For example, we helped our first portfolio company, Better World Books, enhance its social impact strategy by carving out an equity stake for its nonprofit partners and optimizing its partner funding model. Meanwhile, we also helped the company fine-tune its book pricing strategy, which will likely improve margins over the long term. During engagements with our portfolio companies, we are able to bring many valuable resources to the table thanks to the combined talent of our management team, advisory board, and vast networks, which bring expertise from the worlds of social investment, technology, entrepreneurship, venture capital, and philanthropy.
Overseen by an expert investment committee with decades of experience in venture capital, investment banking, operations, and social entrepreneurship, the Social Enterprise Expansion Fund is closely managed and applies the same rigor to due diligence and the bottom line and exit strategies of its portfolio companies as would a traditional venture capital firm.