Save the Children’s Impact Investment Fund reached its first close and will now start investing in innovations in Australia and around the world.
The Fund opened to investors in January 2020. It is aimed at supporting enterprises working in social innovation to address pressing social and humanitarian issues. The Fund will focus on edtech, e-health and fintech innovations improving the lives of disadvantaged children and families.
Along with Save the Children Australia, QBE is an anchor investor in the fund. Other investors include family foundations and high net worth individuals.
Investors were attracted to the Fund’s potential to source investment opportunities from within Save the Children’s global network and add value to these businesses following an investment.
Save the Children Australia’s CEO Paul Ronalds said the first close was an important and exciting milestone:
“Our Fund is about creating solutions to some of the world’s most complex problems. We are all about helping social entrepreneurs and start-ups grow much faster.” said Mr Ronalds.
Changing environment for charity sector demands new approaches
“Before COVID-19 we recognised that a changing operating environment meant that the charity sector needed to adapt its business model.”
“With increasing and rapid changes in the social and humanitarian space, traditional approaches need to be augmented by agile and creative ways to solve the world’s social and humanitarian problems. The demand for our services has been unprecedented, particularly with severe disasters increasing and now the pandemic. This means we must find new sources of funding for social innovation, including leveraging private sector investment.”
“Australian aid funding continues to decline and is now at an historical low. With the rising unemployment rate and uncertainty in the economy, the proportion of Australians donating to charity is also falling.
“Although we will continue to rely on integral traditional funding sources, such as government, public donations and philanthropy, it is important that we introduce new solutions, change our mindset and approach.