Nesta has announced its first £2m of social investments today, as part of its strategy to tackle the UK’s biggest challenges including care for the elderly, education and financial exclusion.
The fund has raised a total of £25m since its launch in October 2012 and is backed by Big Society Capital and Omidyar Network, who look for both financial return and social impact.
New tax relief for social enterprise
Interest in socially-conscious forms of investment has grown in recent years. Nesta claim the social investment market is currently worth over £200m and could be set to grow to £1bn by 2016.
The market has also been boosted by new tax relief for social enterprise which comes into force in April.
First round of companies
- Oomph! (Our Organisation Makes People Happy) (£200,000 invested) – an award winning social enterprise improving the health and quality of life of older adults in care homes through innovative group exercise classes, such as ‘chair cheerleading’
- Ffrees Family Finance (£700,000 invested) – a unique type of current account that helps families to save as they spend
- Movellas (£175,000 invested) – a new online story sharing community aimed at improving literacy skills amongst teenagers
- Sherston Software (£750,000) – a company developing innovative educational software designed to motivate children and boost their educational performance