Financing for Social Impact – The Key Role of Tailored Financing and Hybrid Finance
How can venture philanthropy organisations, social investors and impact investors improve resource allocation to investees? The EVPA Knowledge Centre conducted a nine-month research journey with over 30 experts, resulting in this report launched at the EVPA Annual Conference in Oslo on 9 November 2017. The research examines how funding can meet social purpose organisations’ financial needs and how different actors can collaborate to bring more resources to SPOs. EVPA developed a three-step tailored financing process to help VP/SI organisations identify suitable financial instruments. The report also addresses hybrid finance, combining different financial instruments with varying risk/return/impact profiles. Key findings indicate that tailored financing and hybrid finance enable more efficient resource deployment in the VP/SI space and can address funding gaps preventing SPO access to capital for self-sustainability and scaling.
