Social Venture Capital

Social Venture Capital is a form of venture capital investing that provides capital to businesses that are deemed socially and environmentally responsible.  These investments are intended to provide attractive returns for investors and to provide market-based solutions to social and environmental issues.  Rather than being simply driven by the need to maximize profit, social ventures blend the value of  social impact with financial gain.

Social ventures have emerged in the economy in two ways: as social enterprises (“SE”) from the non-profit sector, and as social purpose businesses (“SPB”) from the for-profit sector.

Source: http://www.socialfinance.ca/knowledge-centre/mars_whitepaper_series_part_1_social_entrepreneurship/

Refers to venture capital that seeks to attain social and/or environmental value as well as financial return, incorporating early "angel investors" as well as more conventional stage venture capital. The types of social objectives pursued range from environmental, alternative lifestyle, healthy products, etc. Most social venture capital funds seek competitive market returns and do not explicitly strive for poverty alleviation or social justice goals associated with community development venture capital (see above.) The US- based Investors' Circle is a well-known association of professionals engaged in social venture capital.

Sustainable Venture Capital (SVC)
Refers to the sub-sector within the venture capital industry that proactively invests in social and environmental technologies, processes and enterprises within professionally managed venture capital portfolios.

Source: Scan of the Community Investment Sector in Canada, Coro Strandberg, Brenda Plant, September 2004.