Shiller has a point when he states that “finance is a functional science in that it exists to support other goals – those of the society.” Finance is necessary to build real estate, airports, bridges or provide student loans.
Social Finance takes this idea to the next level. Social Finance asks how can we best finance the creation of social value. People have already developed a complete ecosystem around the provision of capital. At the core of the social capital market are social enterprises.
Social enterprises have access to a wide of financing instruments and there has been some increased activity by foundations as well as Venture Philanthropy or Social Venture Funds. The presentation takes a look at the different income streams, the financing instruments, the technical issues and the results of a survey of German social enterprises.