A new impact report from Big Society Capital reveals that the UK social investment market has experienced strong growth since 2012. Big Society Capital has channelled £2.6bn of investment to over 3,500 enterprises since 2012. The report also highlights increasing interest in impact investment from venture capital firms and the launch of ImpactVC, an initiative to build a network of venture capital firms across Europe to accelerate impact. The report emphasizes the need for more efforts to reach underserved communities, with 60% of Big Society Capital’s investments in social lending located in the UK’s most deprived areas.
Since 2012, the UK social investment market has seen “constant, strong” growth, according to Big Society Capital’s 2023 Impact Report. In September 2023, the UK social investment market grew to £9.4bn in 2022, up from £7.9bn in 2021. This increase was largely driven by the growth of the social property market. The report also highlights the launch of ImpactVC, an initiative that has grown from 120 to 570 venture capital firms in its first year. These firms collectively manage more than £50bn of assets and show increasing interest in impact investing.
Big Society Capital is focusing on equity, diversity, and inclusion as a market builder. The report states that 60% of its investments in social lending are located in the UK’s most deprived areas. The organization aims to find better ways to reach underserved communities and has seen momentum around blended finance products and solutions that address social issues. It recognizes the need for transparency and clarity and commits to annual impact reports. Big Society Capital is also working on improving the diversity of its staff from ethnic minority backgrounds.
