Social Stock Exchanges – growth capital for the fourth sector through professional transparency
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The Pitch:
Social Stock Exchanges (SSE) act as a market maker between investors and ecological or social organisations. The innovation is to offer so-called "hybrid investments": products with below-market financial returns in exchange for high measurable ecological and/or social impact.
"Regular" IPOs entail prohibitively high costs compared to the mid-sized financing needs of this kind of organisation; at the same time, investors are faced with a lack of transparency when comparing investment opportunities in different "impact organisations".
Therefore, both sides benefit from the platform offered by the Social Stock Exchange Association:
- Organisations can substantially lower their cost of capital, as they no longer directly negotiate with investors
- Investors benefit from a high level of comparability (i.e. transparency) between the non-financial impact of their investments, previously almost impossible to obtain.
Please note: the first two pictures in the video lie under creative commons license of:
http://www.flickr.com/photos/32884203@N00/21399055/sizes/o/
http://www.flickr.com/photos/nozomiiqel/3409174642/sizes/l/
All other photos courtesy of the projects portrayed: Zahra Rosewater, Grameen Shikka, Grameen Shakti, Aravind, One-Laptop-per-Child, Street UK.
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