Social Purpose Ventures

If we take a deeper look into the vast ocean of social innovation we will find one of the more rare species called Social Purpose Ventures (SPV’s).

"The world today is awash with spectacularly talented, hopeful, and creative social entrepreneurs who offer important solutions to our social and environmental challenges. But there's a shortage of capital and support to nourish entrepreneurs' visions through the early stages. GSVC offers access to such capital, along with solid and grounded advice and a network that reminds entrepreneurs they are not alone in their pathological optimism." -Global Social Venture Competition

In more tangible words:

• Social refers to meeting the needs of people, profit or planet with what you are doing.
• Purpose is why you are doing it.
• Venture means involving considerable risk. The risk in this is of course connects to the capital involved.

In most SPV's the capital comes from philanthropists. People that give money without any expectations of getting them back. An increased number of venture capitalists (VC’s) seem to find interest within the field. VC's invest in companies in which they see a high growth potential. They are a group of wealthy investors, investment banks or other financial institutions that pool their funds together. In turn for the investment VC's usually demand a say in the company decisions as well as a portion of the turnover.

To bottom line it: SPV’s invest in social enterprises/entrepreneurs to get a say as well and a part of the turnover.