Social Spectrum

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The above diagram is intended to show the top-level spectrum of activity where venture capital and private equity firms can get involved in sustainability, social investment and philanthropic activities. At the left hand end is the mainstream private equity community where issues of sustainability are becoming increasingly relevant in terms of the core investment remit. Moving through the middle of the spectrum are more specialist organisations looking to use various commercial / semi- commercial models to address particular social or environmental issues. At the right hand end are more philanthropic initiatives (where the expected ‘return’ is purely social). In terms of how private equity firms can get involved, the left hand end of the spectrum has greatest relevance in terms of day-to-day investment activity, the right hand end is of relevance in terms of optimising the impact of CSR and philanthropic initiatives. The Spectrum of Private Equity Involvement COMMERCIAL DRIVERS S O C I A L / P H I L A N T H R O P I C D R I V E R S Commercial Investment in Social / Environment al Sectors Community Development Venture Capital Social Enterprise Investment / Social Venture Capital Venture Philanthrop y / Charitable Initiatives VC / Social Specialist VC Social / VC Philanthropy Mainstream VC Environment al sustainabil ity, CSR and SRI considerati ons for Mainstream VC and PE Investors

description

British Venture Capital Association includes social venture in their picture of the spectrum for the first time

Transcript of Social Spectrum

Page 1: Social Spectrum

The above diagram is intended to show the top-level spectrum of activity where venture capital and private equity firms can get involved in sustainability, social investment and philanthropic activities.

At the left hand end is the mainstream private equity community where issues of sustainability are becoming increasingly relevant in terms of the core investment remit. Moving through the middle of the spectrum are more specialist organisations looking to use various commercial / semi-commercial models to address particular social or environmental issues. At the right hand end are more philanthropic initiatives (where the expected ‘return’ is purely social).

In terms of how private equity firms can get involved, the left hand end of the spectrum has greatest relevance in terms of day-to-day investment activity, the right hand end is of relevance in terms of optimising the impact of CSR and philanthropic initiatives.

The Spectrum of Private Equity Involvement

CO

MM

ER

CIA

L

DR

IVE

RS S

OC

IAL

/ P

HIL

AN

TH

RO

PIC

D

RIV

ER

S

Commercial Investment in

Social / Environmental

Sectors

Community Development

Venture Capital

Social Enterprise

Investment / Social Venture

Capital

Venture Philanthropy /

Charitable Initiatives

VC / SocialSpecialist VC Social / VC Philanthropy Mainstream VC

Environmental sustainability, CSR and SRI considerations for Mainstream

VC and PE Investors