"Architectural Dimensions of Social Venture Capital: Examining Strategy, Structure, and Performance"

Abstract The article aims at providing characterisation of social venture capital in Europe. The introductory part of the contribution deals with its origins and classification. The attention is devoted to various factors that have led to emergence of SVC such as existence of market gap, global crisis, monetary policy, disintermediation and financial innovations. The article also emphasises the fact that there is no unified market and, moreover, that the boundaries between social institution and traditional investors are becoming blurry. The main contribution of this article is to characterise the current state and to describe the latest development of SVC in Europe. The focus of analysis was aimed at defining the investment focus, priorities and resources of SVC. Western Europe is the main target region of SVC during all examined period, followed by Africa and Asia. In all years, top financial beneficiaries are people suffering from poverty followed by children and youth. Amongst the top five targeted beneficiaries are also people with disabilities, unemployed people and women. Whilst trend in geographical focus and financial beneficiaries is stable, focus in investment sector changes over time. Financial inclusion alongside with economic and social development currently represents top sectors that attract more than half of total investments in 2017–2018. At the same time, SVC is becoming more attractive to investors in Europe what confirms the fact that the number of organisation is rising alongside with their budgets.

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Social Venture Capital

The Journal of Investing ◽

10.3905/joi.1997.408436 ◽

1997 ◽

Vol 6 (4) ◽

pp. 108-111 ◽

Cited By ~ 10

Author(s):

D. Wayne Silby

Keyword(s):

Venture Capital ◽

Social Venture ◽

Social Venture Capital

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Socially Responsible Investment (SRI)

Corporate Social Responsibility and Opportunities for Sustainable Financial Success - Advances in Human Resources Management and Organizational Development ◽

10.4018/978-1-5225-7619-8.ch003 ◽

2018 ◽

pp. 74-152

Keyword(s):

Venture Capital ◽

Social Impact ◽

Socially Responsible Investment ◽

Third Party ◽

Corporate Management ◽

Socially Responsible ◽

Responsible Investment ◽

Social Venture ◽

Social Venture Capital ◽

Consumer Boycotts

The most common forms to align financial investments with ethical, moral, and social considerations are screenings, shareholder advocacy, community investing, and social venture capital funding. Screenings integrate the evaluation of corporate financial and social performances into portfolio selections. Positive screenings target corporations with sound social and environmental responsibility. Negative screenings exclude entities featuring morally and ethically irresponsible corporate conduct. Shareholder advocacy is the active engagement of shareholders in the corporate management by voting, activism, and dialogue. The majority of shareholders exercise their voting rights by proxy resolutions, in which a third party has the right to advocate for the shareholders before the corporate board. Negative shareholder activism comprises political lobbying, consumer boycotts, stakeholder confrontation, and negative publicity. Community investing describe ear-marks of investment funds for community development, but also features access to financial products and services to un(der)served communities. Social venture capital supports pro-social start-ups and social entrepreneurs for the greater goal of increasing the social impact of financial markets. This chapter explores socially responsible investment.

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