Scottish impact investor SIS Ventures is launching a second round of fundraising, with the aim of attracting up to £5m.
The Impact First fund invests equity into Scotland-based businesses whose social and environmental impact is aligned to the United Nations Sustainable Development Goals.
The fund has already invested around £1.3m into eight 'high impact', growing businesses and continues to deploy £5m of Scottish Government funding into a 'strong pipeline' of businesses.
Each business is led by a unique mission including, for example, providing earlier diagnosis for life-limiting diseases such as cancer (Dxcover) and Parkinson’s (Manus Neurodynamica), tackling online harm issues (Cyan Forensics), encouraging the switch to electric vehicles through on-street charging points (Trojan Energy), and helping deliver better patient health outcomes (Talking Medicines).
This second Enterprise Investment Scheme (EIS) fundraise presents an opportunity for investors to support both existing Impact First investees to grow through follow-on funding rounds, as well as invest in new, early-stage businesses. The minimum investment sought from investors is £20,000, with each investor invested in at least six businesses over a period of seven to 10 years.
SIS Ventures works with investee management teams to lock their mission into company Articles of Association, ensuring that social and environmental impact returns and financial success are symbiotic.
David Ovens, chair of SIS Ventures, said: “We believe that impactful businesses, those that combine profit with purpose, are the future and should be supported with the full power of the investor community.
“Impact First is developing an impressive track record, a strong pipeline and a worthy reputation as the leading investor in this space - I hope that the fundraising will be well supported by those who share our mission to create an impact economy.”
Jill Arnold, head of SIS Ventures, added: “Since launching Impact First, we have proved without doubt that there is more than sufficient appetite for such a fund among highly ambitious businesses with aspirations for growth.
“We also know that in recent years impact investing has soared in popularity among the global investor community.
“While many have adopted a ‘wait and see’ approach, based on the relative scarcity of evidence to support an impact-first investment approach, with our first portfolio of investments almost complete, we are now able to more visibly prove the investment case.”
She concluded: “Despite the challenges presented by Covid-19, all investees are performing well, and there are emerging signs of strong exit potential.”
SIS Ventures is a wholly-owned subsidiary of Social Investment Scotland, which was launched in 2018 and authorised by the Financial Conduct Authority.
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