Stakeholders back
ground-breaking social enterprise risk capital investment fund
CABINET OFFICE News
Release (CAB/086/08) issued by The Government News Network on 31
July 2008
Phil Hope,
Minister for the Third Sector, today welcomed the overwhelmingly
positive contributions to the Government's consultation on
establishing an unprecedented £10million fund for risk capital
investment in social enterprises.
The proposal for an equity and equity-like investment scheme, to
be matched by private investment, has won near-universal backing
from a broad range of industry experts. Respondents agreed with
the Government that the proposed fund would help bridge a gap in
finance that some social enterprises experience particularly when
moving from a start-up to a growth phase.
The consultation also raised a number of issues that the
Government has considered and addressed in its response which is
published today. As a result, improvments have been made to the
proposals for appointing and reimbursing the fund manager or managers.
Welcoming the views, Phil Hope, Minister for the Third Sector, said:
'The consultation has reinforced my view that a lack of
access to risk capital finance can hold back social enterprises
from reaching their full potential to improve peoples' lives.
'We are world leaders in social investment. The social
enterprise risk capital fund is exploring uncharted territory and
the consultation responses are an invaluable guide. I'm
extremely grateful to those who have contributed to this
discussion for their constructive support which has helped
fine-tune the fund to give it the best chances of success.'
Overall there were 29 responses to the consultation from a wide
range of industry experts, Regional Development Agencies and
bodies representing investors and thousands of social
entrepreneurs. The next step will be to appoint a fund manager or
managers through an open competition over the coming months.
Notes to Editors
1. For further information on the risk capital fund and the
Government's response to the consultation please see:
http://www.cabinetoffice.gov.uk/third_sector/funding_finance_support/risk_capital_fund.aspx
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