2. Overview
• Introduction
o
o
Capital flows: Income and investment
Mismatch of needs and requirements between innovators and investors
• Research results
• Future scenarios
• Recommendations
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TEPSIE is a research project under
EU’s 7th framework programme
3. The empirical base
Denmark:
7 interviews
13 survey respondents
Germany:
15 interviews
152 survey respondents
UK:
10 interviews
116 survey respondents
Poland:
9 interviews
18 survey respondents
Portugal:
10 interviews
72 survey respondents
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Greece:
8 interviews
73 survey respondents
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TEPSIE is a research project under
EU’s 7th framework programme
4. Results: Financing instruments
• Investment readiness: Percentage of social innovators stating to
be capable of (re)paying...
45
40
35
30
25
20
15
10
5
0
…up to 4%
interest: 9.7%
…up to 2%
interest: 7.1%
…but no
interest: 25.3%
19.5%
…no investment
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Maximum
interest:
up to 12%
up to 10%
up to 8%
…up to 8%, 10%,
12% interest:
1% of respondents
each
…up to 6%
interest: 5.2%
…social
investment
4
…commercial
investment
TEPSIE is a research project under
the EU’s 7th framework programme
up to 6%
up to 4%
up to 2%
No interest
No repayment
5. Results: Financing instruments
• Financing instruments deemed as (un)suitable for financing growth;
percentages of respondents assessing a certain instrument as...
100
Secured debt
Investor equity
Mezzanine
…unsuitable
80
Interest-free
loan
…rather unsuitable
Grants/donations
(from businesses)
26
…suitable
60
…very suitable
40
20
32
29
17
0
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5
18
11
63
19
19
12
12
5
5
16
12
14
17
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TEPSIE is a research project under
EU’s 7th framework programme
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6. Analysis: Core innovator and investor needs
• Innovator needs:
o
o
o
Low cost of capital
Autonomy
Non-financial support
• Investor needs:
o
o
o
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Low transaction costs
Impact measurement
Adequate risk and return ratio
6
TEPSIE is a research project under
EU’s 7th framework programme
7. OUTLOOK: Scenarios
• Independent variables
o
o
Organisational manifestation: In how far there are (more) investmentready organisations?
Institutionalization: In how far are framework conditions supportive?
• Dependent variable: Capital flows for social innovation
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TEPSIE is a research project under
EU’s 7th framework programme
9. Recommendations
• Markets and government support for social innovation needed
to improve precarious income models
• Investment practices and requirements to be adapted for
financing social innovation
• Need for more cooperation between types of actors to lower
capital costs, reduce risks and provide non-financial support
11/12/2013
9
TEPSIE is a research project under
EU’s 7th framework programme
10. Thank you very much!
Please take a look at
http://www.tepsie.eu/index.php/publications
for the full report!
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TEPSIE is a research project under
EU’s 7th framework programme
