Phil Hope, Minister for the Third Sector, recently announced that a proposal to set up a £10 million Risk Capital fund for social enterprises will go ahead, aiming to offer help at the critical start up and early growth stages of developing their business.  The fund will be run as a ‘pathfinder investment scheme’ where the Government’s £10 million investment will need to be matched by private and independent investors. The government is hoping that this adds further choice in the investment opportunities that social enterprises have.

Jonathan Bland, Chief Executive of the Social Enterprise Coalition, commented that: "We feel it is a useful pilot for increasing vital risk capital investment into social enterprise."
The Government will appoint one or more independent fund manager(s) following a tender process. Under the rules of the investment fund the Government will make the same return on investments as independent investors. It is expected that the fund will open to applications in the autumn.

The Risk Capital investment fund was first recommended in the Government’s Social Enterprise Action Plan published in November 2006. 

Please follow the online link to Society Guardian Wednesday February 27 2008 for in depth coverage of this story or visit the Cabinet Office website for more details.