The fund run by Big Lottery Fund will increase the amount of money available at the early stages of projects where the financial return is too low [11] while Big Society Capital invests social investment intermediaries that carries higher financial risk.
[16] The classic example of Benetech, a non-profit organization, shows that the proceeds gained were being used to create a handful of new social enterprise patterned.
[18] Social ventures unusually face a ranges of funding options not limited to the common ones such as debt capital with participation rights, mezzanine financing (quasi equity) or license fees.
Such funds supports the social ventures with invested capital that must be repaid either in short or long period of time, in additional with an agreement amount of interests.
[20] In other words, if the company failed to repay their debt capitals, would results their ownership and equity interest to be liquidized.
[23] To effectively maximize the fund's capital to deliver social impact, social venture companies are attracted to successful financing social enterprises that show growth and financial sustainability, usually when anticipated exit strategy of the company is foreseeable,[24] especially for young venture capital firms to minimize their exit from the invested companies, to maximize the opportunity of future fund raising, especially, when prospect of exits beyond the 7 year periods decreases for companies going for initial public offering (IPO) and merger and acquisition.
Under scheme, the VCT companies itself exempt from CT on chargeable gains and their investors can claim income tax relief on subscriptions of up to £200,000.
[33] Crowdsourcing is a practice of funding a project or venture by raising monetary contributions from a large number of people, typically via the internet.
For-profit fundraising companies using strategies such to charge a premium on "keep what you raise” model or minor charges on an "all-or-nothing funding approach" [34] However, particularly for Social Crowdsourcing, non-profit organization such as razoo to help social enterprise or non-profit, student organization to raise fund for event or charitable causes.