The capacity building seminar will gather the main stakeholders who are concerned with building conducive ecosystems for social enterprises: policy makers and administrators, networks of social enterprises and social economy actors, social finance players. T

1. SOCIAL INVESTMENT IN PORTUGAL
AN OVERVIEW OFTWO KEY INITIATIVES: PORTUGUESE SOCIAL
INVESTMENT TASKFORCE ANDTHE USE OF EU FUNDSTO
FOSTER SOCIAL INVESTMENT
February 2016
António Miguel
antonio@ies-sbs.org.pt

2. TWO KEY INITIATIVES INTHE SOCIAL INVESTMENT MARKET
2
PortugueseSocial InvestmentTaskforce
Mobilising key market players from the private,
public and social sector to foster a meaningful
discussion about social investment in the country.
Main output: national action plan to boost social
investment with 5 key recommendations.
Portugal Inovação Social
Portugal Inovação Social promotes the development
and availability of adequate financing mechanisms
that meet the specific needs of social sector
organisations.The financing programmes respond
directly to market failures. It is funded with 150M
EUR from EU Structural Funds.
These two initiatives have been crucial in catalysing the nascent social investment market in Portugal and
encompass significant learnings for other European countries willing to replicate them.

3. PORTUGUESE SOCIAL INVESTMENTTASKFORCE
3
The work of the Portuguese Social Investment Taskforce is promoted by a partnership between the Calouste
Gulbenkian Foundation, Social Investment Lab and Social Finance, with the support of the European
Commission. The Taskforce brings together key decision makers from the private, public and social sectors
(Bank of Portugal, Presidency of the Republic, Financial ServicesAuthority, among others).
TECHNICAL AND ADMIN
SUPPORT
FIVE
RECOMMENDATIONS
THAT MIRROR THE KEY
ELEMENTS OF A ROBUST
SOVIAL INVESTMENT
MARKET: (1) DEMAND, (2)
SUPPLY, (3) PUBLIC
SECTOR, (4) MARKET
INTELLIGENCE AND (5)
INTERMEDIATION.
RESEARCH NOTES FOR
EACH WORKING GROUP
JUL2014–JUN2015
• Case studies and
best practices
• Application to the
Portuguese
context
• Plenary sessions
and individual
sessions
• Workplan and
objectives
• Support in the
decision-making
process
MAY 2015
JUNE 2015
FINAL REPORT
JAN-FEB2015
4 THEMATIC FOCUS GROUPS • Themes: youth
unemployment, social
innovation in the public
sector, financial
mechanisms for social
innovation, capacity-
building for impact and
investment readiness
APRIL2015
IMPLEMENTATION // MONITORING
PROGRESS
• Transposal of EuSEF label with innovative
features (non qualified investors)
• ONE.COST: database with per capita costs of
social issues
• Outcomes Academy: capacity building within
public sector for wider adoption of outcome-
based commissioning
http://grupodetrabalho.investimentosocial.pt

4. USING EU STRUCTURAL FUNDSTO CATALYSE SOCIAL INVESTMENT
4
Portugal Inovação Social will have 100€ million to act as a wholesaler of the market and will channel funds
through retail structures, acting as a Fund of Funds. These retail structures are able to attract private co-
investors in order to leverage other sources of capital. 15€ million will be available to pay for outcomes in
order to foster SIB. 30€ million will be available to build the pipeline and improve investment readiness of
social organisations.
EU Structural Funds 2014-2020
(OP Social Inclusion and Employment, OP HumanCapital, RegionalOPs)
Social
Innovation Fund
(Fund of Funds)
~€100M
SIB Outcome
Fund
~€15M
Match Fund for
Venture
Philanthropy
~€15M
Capacity
building for
investment
readiness
~€15M
Source of
funding
Funding
Programme
(amounts exclude
potential co-
investment)
Social innovation projectsBeneficiaries
The guiding principles and strategic goals of Portugal Inovação Social aim at mobilising and foster cooperation
within the ecosystem of social innovation and entrepreneurship in Portugal through a blended wholesaler /
retail approach.
Financial instrument

5. USING EU STRUCTURAL FUNDSTO CATALYSE SOCIAL INVESTMENT
5
The four funding programmes of Portugal Inovação Social articulate with the development cycle of social
innovation projects and address where market failures exist within each stage.
Venture Philanthropy
Capacity building for investment readiness
SIB Outcome Fund
Social Innovation Fund
INVESTMENT
READINESS
CONSOLIDATION STAGE
Potentialofimpact
Stage 1 – Focus on the
problem and solution
Stage 2 – Business model Stage 3 – Growth Stage 4 – Dissemination
(time)
There are synergies between funding programmes: e.g., an organisaitons that receives support from the
Capacity-building Programme will likely be in a good place to apply for SIB funding and is likely to be more
ready to attract capital from the Social Innovation Fund.

6. DEEPER LOOK INTOTHE FINANCIAL INSTRUMENT (FUNDOF FUNDS)
6
The wholesaler Social Innovation Fund is expected to be funded with approximately 100M EUR from the
European Social Fund. It will have two adopt two different mechanisms: debt and equity / quasi-equity.
Funding innovation within
well established social
organisations
Funding for growth and
consolidation of social start-ups
Retail funds for lending, via
banks
EuSEF Funds
Deal-basis flow
(business
angels)
Debt (especially unsecured
lending)
Equity and quasi-equity (assymetric
risk / return profile)
Managing authority +
Portugal Inovação
Social
Fund manager
(wholesaler level)
Financial intermediaries
(retail level)
Final beneficiaries
(social innovation
projects)

7. • Government engagement is critical. Strong support at a Ministerial level since 2013 has played a critical
role in assuring the development of the Portuguese Social Investment ecosystem. Changes in Government
(Ministers) have not affected the social investment agenda.
• The need for market champions. Portugal Inovação Social is the catalyst entity in this nascent market.
Calouste Gulbenkian Foundation is also acting as a cornerstone market player by simultaneously investing
in market-building activities and specific transactions.
• Having a clear vision. Portugal will hardly be a sizeable social investment market due to its dimension and
lack of scale. However, it can serve as a blueprint for other countries serving as an ideal place for
experimentation and incubation (given its small scale and high flexibility) and further replication and
scalability across other countries.
• Designing an action plan. The Portuguese Social InvestmentTaskforce convened decision makers from
the public, private and social sector and has laid out the foundations for the social investment ecosystem
through 5 simple recommendations that tap into the key elements of the market. It is clear for all market
players what is their role in implementing these recommendations.
• Adapt to local context. Contrary to what we have seen in other countries, in Portugal, instruments like
SIBs will be mostly used to create the evidence that does not exist amongst the social organizations. SIBs
can embed different value propositions: in Portugal, its value doesn’t only rely on potential savings but
rather on the reallocation of risk to allow testing innovative interventions.
• Quick wins are crucial. Despite most of the times not being economically viable, pilot projects are
important to test new financial mechanisms and to have its buy-in from key stakeholders.The market
needs quick wins - launching a small scale pilot is crucial to create momentum and to convince about the
applicability of the concept.
MAIN LEARNINGS FROMTHE PORTUGUESE ECOSYSTEM
7

8. SOCIAL INVESTMENT IN PORTUGAL
AN OVERVIEW OFTWO KEY INITIATIVES: PORTUGUESE SOCIAL
INVESTMENT TASKFORCE ANDTHE USE OF EU FUNDSTO
FOSTER SOCIAL INVESTMENT
February 2016
António Miguel
antonio@ies-sbs.org.pt