Giving Compass' Take:

• Social enterprises face a range of challenges in accessing early capital to grow. Conscious Company shares successful methods for accessing the necessary capital. 

• How can philanthropy support social enterprises in their early stages?

• Learn about innovating finance for social enterprises?

Social enterprises, particularly those in developing countries, face a number of headwinds as they scale, including:

  • Most impact investors in the missing-middle range seek market-rate, or non-concessionary, returns in addition to measurable impact.
  • As deal sizes grow, investors are increasingly commercial, and social entrepreneurs are left with either venture capitalists or private equity funds seeking returns-only or strategic investments.
  • Too often, traditional equity is unsuitable for social enterprises

Navigating the complex funding landscape typically means learning by doing and finding ways to effectively blend impact, commercial, venture, and philanthropic capital. With Husk Power’s recent funding as the example, social enterprises might want to consider these best practices:

  • Make mistakes.
  • Think big when it comes to funding.
  • Collect data.
  • Work with great mentors and build a strong board.
  • Evolve the business model.
  • Create a list of diversified investors.

Read the full article about attract growth-stage capital at Medium.