Project: Individual Catalytic Capital Commission
Beacon Collaborative (BC) will convene a Commission to identify the reasons for the current lack of angel investing in impact focused enterprises, the appetite and expectations of High Net Worth investors in terms of social ventures, and the reasons why Social Investment Tax Relief (SITR) has not been more widely used. It will also identify funds, platforms and networks that can be promoted by professional wealth advisors to stimulate greater impact investing. The purpose of this work will be to increase the availability of catalytic capital in the social investment sector. Catalytic capital is funding that is patient and flexible in its repayment terms, risk tolerant and concessionary.
The Commission will use the final report and recommendations to influence the social finance sector, business angel networks, fund managers, professional wealth advisors and HNW individuals to direct more investment into early-stage social enterprises, enabling them to thrive and scale at a pace more like their for-profit counterparts. The Commission will also look to influence Government and create structural change to make social impact investing a more attractive and easier option for individuals. Over time this will create a greater deal flow for social finance funds and contribute to improved environmental and social outcomes.