Social Venture Due Diligence – The Acumen Fund’s BACO Analysis by Ray Dinning, JD, LLM,

The Acumen Fund has developed a rigorous, yet effective due diligence tool to measure the cost of capital between social venture funding available.  BACO is “best available charitable option” where “the point of the analysis is to inform our portfolio decision-making with a quantifiable indication of whether our social investment will “outperform” a plausible alternative.”

While the Acumen Fund has garnered acclaim, new social innovators such as the Toronto Social Venture Exchange (www.thesvx.org) may have the potential to provide social venture capital to a much larger, global market.  Patterned after the successful Toronto Stock Exchange (TSX), the SVX is designed to attached investors into selected social venture projects in a stock exchange format.  The SVX, therefore, has the opportunity to attract social venture capital from a  worldwide social investor pool to be “invested” into social ventures worldwide.  Insiders at the SVX stated that “the SVX should be launched formally in May, 2012.”

The SVX is one social venture capital project to watch closely in 2012.

 

BACO Concept Paper final_B1cNOVEM

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