The panel consisted of:
- David Alcock, Partner, Anthony Collins
- Jimmy Crick, Director, Impact Finance Consulting
- Amy Gutcher, Chief Financial Officer, Sumerian Partners
- Jeremy Pannell, Senior Corporate Finance Manager, Triodos
- Chair: Meena Bharadwa, Senior Programmes Manager, Access: The Foundation for Social Investment
How does a social investor differ from a traditional investor or a high street bank?
A question that gets asked time and time again is around the difference in a social investor or a social bank to a traditional high street bank, and how do you know which is the right option?
Relationships are key when it comes to understanding social investment; it's not just about funding - strong, trust-based partnerships matter. Social investors often look to provide more than just monetary support – whether networking, skills support or simply encouragement.
Products such as ‘blended finance’ - a combination of loan and grant funding – can make social investment a more affordable option and sometimes social investors can offer more favourable lending terms than high street banks. Social investors might also be willing to lend on a smaller scale.
Check out the tips on social investment applications below.
When it comes to applying for social investment, the experts gave some key advice.
Do your research – it’s important to demonstrate your awareness of the market, the investor’s risk appetite and impact criteria. Focus on building strong relationships with a few well-aligned investors rather than pursuing many at once.
Demonstrate your impact and business projections in a realistic, achievable way. Impact measurement should be meaningful to the organisation—not just tailored to funder expectations.
Communication builds trust - Investors value honest conversations and genuine passion over polish; it's okay to show vulnerability.
Legal advice is crucial – involve a lawyer early in the process so they can advocate for you and questions can be raised at the right time. Lawyers can help negotiate terms of the deal so it best serves your interests.
How lawyers can help
You need a friend in the room – your own lawyer – to advocate for you.
Lawyers can help to negotiate terms of the deal so that it best serves your interests.
Make sure your own legal structure and governance is tidy and fit for purpose.
Talk to lawyers early in the process so any questions can be raised at the right time.
Dealing with nerves
Don’t be afraid to be yourself – social investors are human beings too! Good social investors will understand your concerns and talk them through with you.
Feel prepared by making sure your business plan and business model are robust and well structured.
Look for an investor who makes you feel comfortable to ask questions and puts you at ease.
If things go wrong
Before committing, ask the social investor what would happen if you run into any problems, and talk to other organisations they have invested in.
Many problems can be mitigated through good communication – engage early and avoid any legal issues.
Social investors are likely to be flexible and want to work with you to achieve the best outcome.
We left Good Finance Live energised, motivated and inspired by the possibilities of social investment.
If you missed out on Good Finance Live, catch up on sessions on their website