Social investment has come a long way – but it’s not just about the numbers. It’s about what’s really changing, who’s feeling the impact, and where we go from here. In this piece, I’m taking a look at some of the people and projects making things happen, and what the future might hold.
“As the UK’s social investment sector marks two decades of evolution, here is a reflection on some key players journeys, milestones, and some of the challenges that lie ahead. From pioneering funds to bold new visions, the landscape is rich with stories of impact, innovation, and ambition.”
Big Issue Invest: Two Decades of Purpose-Driven Finance
Founded in 2005, Big Issue Invest has been a trailblazer in the UK’s social investment movement. Now celebrating its 20th anniversary, the organisation is taking stock of its journey. Executive Chair Mark Porter, writing in Pioneers Post, described the sector’s transformation as “exponential,” yet acknowledged that the future remains “more uncharted still.”
Over the years, Big Issue Invest has backed hundreds of social enterprises, helping to build a more inclusive economy. But Porter warns that the current environment is testing. With political support less robust than in 2012, social investors must now play a greater role in addressing systemic inequalities and supporting marginalised communities.
Still, there is cautious optimism. The Chancellor’s recent commitment to a new social impact investment vehicle has sparked hope for renewed momentum.
Better Society Capital: £1 Billion Invested, £4 Billion Unlocked
In April, Better Society Capital (BSC) announced a major milestone: £1 billion invested into social enterprises and charities since its launch in 2012. With £2.9 billion in co-investment, the total capital unlocked for impact-led organisations now approaches £4 billion.
BSC’s investments have supported over 3,750 organisations tackling issues such as homelessness, fuel poverty, and financial exclusion. The organisation reports that more than seven million people have been reached through its investments, over 7,000 homes have been delivered, and 60% of its social lending has gone to the UK’s most deprived areas.
“This is an exciting time for the sector,” said Chief Investment Officer Anna Shiel. “We see exciting opportunities for renewed engagement with the new government to attract more capital for social good.”
Firstport: Empowering Scotland’s Social Entrepreneurs
In Scotland, Firstport’s mission is to lead the charge in supporting early-stage social entrepreneurs.
A new economic impact report, funded by the Scottish Government and conducted by Social Value Lab, highlights the success of two flagship programmes: the Social Entrepreneurs Fund (SEF) and LaunchMe.
Between 2021 and 2024, SEF delivered £3.14 in social and economic return for every £1 of public investment. It supported 202 new social enterprises, created 111.5 jobs, and helped organisations increase turnover and attract further investment. LaunchMe, an investment readiness programme, delivered £6.20 for every £1 invested. It helped 30 social enterprises secure funding, create 64.5 full-time equivalent jobs, and generate £1.4 million in additional turnover.
Combined, the programmes have generated an estimated £24.7 million in financial return.
Foundation Scotland: Blended Finance for Sustainable Growth
Foundation Scotland offers an innovative, blended approach to social investment through its Social Investment Fund. Designed to support social enterprises, community organisations, and charities, the fund provides investments from £10,000 to £250,000, with up to 25% available as a grant.
The fund supports working capital, asset acquisition, business growth, and capital expenditure. Loans are typically repayable over 10 years, with terms tailored to each organisation’s needs.
Social Investment Scotland: £150 Million Invested and Growing
Social Investment Scotland (SIS) has invested nearly £150 million in 563 social enterprises since 2001. According to its latest impact report (April 2023–March 2024), 96% of SIS customers are based in Scotland, and the organisation continues to expand its fund portfolio.
SIS manages a wide range of funds, including the Community Investment Enterprise Fund, Scottish Social Growth Fund, and SIS Ventures. These funds support everything from net zero transitions to poverty offering flexible loans and equity investments to organisations tackling society’s biggest challenges.
Reflecting on the Social Investment Sector
As the UK’s social investment sector matures, the focus is beginning to shift from proving the model to scaling its impact. With potentially new government interest, growing investor appetite, and a strong foundation of success, the sector is poised for its next chapter. In a time when the funding landscape is so challenging – hopefully this chapter will redefine how social investment serves people and planet.
These are just some of the social investment products that are on the market. To select the right social investor for your organisation, thoroughly research all potential investors, and evaluate their alignment with your organisation’s mission and values. Consider their investment focus, experience, and the support they offer beyond financial investment. Crucially, build a relationship with investors who share your social mission and can offer valuable guidance and resources. Of course, you can get in touch with me too if you want to chat through any ideas and concerns – email: claire.shaw@acvo.org.uk
Disclaimer
ACVO TSI provides impartial and objective advice. This feature aims to highlight the social investment landscape and is not in any way endorsing the organisations or products highlighted.
This article originally appeared in the July 2025 edition of ACVO News, our free monthly digital magazine for and from the the third sector in Aberdeen. Read the current and past editions, and sign up to our mailing list, at acvo.org.uk/acvo-news
