Social Venture Capital on the Rise
By: Ray Dinning, JD, LLM
In 2009, social venture funds are increasing rapidly on an unprecedented scale. At least seven new and follow-on funds billed as social venture or social entrepreneurship funds are on track to raise about $ 1 billion this year
“It’s really peaked in the last six months,” says David Chen, founder of Equilibrium Capital, a planned $200 million fund focused on the cleantech and wellness sectors. Commencing in the Fall of 2008, Chen has seen a significant increase in interest levels from investors in the social venture arena.
The rise in social venture comes as institutional and accredited investors are putting significantly more money into so-called socially responsible investment (SRI) vehicles. Today, roughly $2.71 trillion—or 11% of assets under professional management in the United States—are now involved in SRI, according to the Social Investment Forum, a trade group.
Resources like Social Venture Network and social venture legal specialists like B. Ray Dinning, JD, LLM are providing guidance to the burgeoning social venture market. Social Entrepreneurs require necessary capital but they also need guidance in proper structuring of these helpful ventures.