Financing for Social Impact - The Key Role of Tailored Financing and Hybrid Finance
How can funding be shaped in a way that meets the financial needs of the social purpose organisation (SPO)? And how can different stakeholders collaborate in the VP/SI space to bring more resources to SPOs?
This report provides an overview of how to tailor their financial support (e.g. grants, loans, equity and hybrid financial instruments) to the needs of the social purpose organisations, by looking at pros and cons of each financial instrument and selecting the ones that are the most suitable, based on the business model and the stage of development of the SPOs. The EVPA report also showcases examples from the emerging field of hybrid finance, which helps bring more resources to developing societal solutions and increase the effectiveness in financing SPOs,also by de-risking traditional capital (i.e. public, commercial and retail).