This blog series sets out our thinking on impact investment in the UK.

Key findings:

We want to see the impact investment market develop to so there is more focus on: 

• Inclusive, accessible, affordable innovations that address major social needs.
• Delivering positive social outcomes regardless of legal form.
• The standard of evidence of a venture’s impact.
• Profitable, sustainable and resilient business models capable of scaling their impact.

​The field of impact investment is growing in activity, interest and potential in the UK and internationally.

2012 has been a year of significance for development of the field, with the launch of big society capital, DFID's Impact Fund, a proliferation of research output, and most importantly a series of pioneering transactions from Oxfam's first SME investment in Mongolia, to the Vulnerable Children Social Impact Bond in Essex to Scope's £2 million bond issue. 

Nesta has been involved in this field for five years, and we continue to support its development because we want to see finance for social innovations so that they can grow and maximise their impact.

Investment is needed to fund the creation of new innovations, to support their development and testing and to scale up those innovations that work. This is as true of innovation that seeks to achieve social impact as it is of those motivated by creating financial value.

Authors
Joe Ludlow and Jo Casebourne