Fair by Design Impact Fund: Driving Equitable Innovation in Social Ventures
The Fair by Design impact fund operates with the mission to reduce the poverty premium, a situation where lower-income households pay more for essential services and goods.
This targeted fund invests in UK enterprises that are creating innovative solutions to make the market fairer and more inclusive for those who are financially disadvantaged.
Businesses receiving support from this fund are those whose operations directly challenge the extra costs imposed on the poor, often in areas such as energy, financial services, and insurance.
By funding and scaling these social ventures, Fair by Design manifests its commitment to social justice and economic equality through practical, market-based solutions.
Key Takeaways
- Fair by Design aims to mitigate the poverty premium in the UK.
- Support is provided to enterprises that offer fairer market solutions.
- The impact fund is a vehicle for fostering economic inclusivity.
Overview of Fair by Design Impact Fund
The Fair by Design Impact Fund champions investment in companies and technologies that seek to alleviate the additional costs associated with being poor, known as the poverty premium. It brings together a coalition of social investors and foundations focused on backing ventures that make a direct impact on the lives of those who face financial challenges.
Origins and Philosophy
Fair by Design was conceived out of a determination to confront and eliminate the poverty premium. The initiative is supported by the Joseph Rowntree Foundation and Toynbee Hall and draws upon a philosophy that believes equitable access to essential services is a right for all, not a privilege for the few. It champions businesses that are intrinsically designed to reduce the cost burden for economically vulnerable individuals and families.
Key Stakeholders and Partners
The fund operates through a collaborative effort of key stakeholders, including Barrow Cadbury Trust, Ascension Ventures, and Big Society Capital. These stakeholders contribute capital, expertise, and strategic oversight to drive the fund’s objectives. Ascension serves as the fund manager, harnessing a deep understanding of social impact investing to steer the fund’s efforts.
Investment Focus
With an emphasis on equity and equity funding, the Fair by Design fund seeks to provide capital to businesses at various stages, from seed to series A rounds. The investments are strategically channelled into ventures that demonstrate a clear vision and potential for social impact, particularly those addressing the challenges associated with poverty.
Target Sectors and Beneficiary Products
Investments are directed towards a variety of sectors, including but not limited to energy, food, credit, insurance, and transport. The beneficiary products and services typically have at their core an innovative approach to reducing the financial strain on consumers, enhancing the quality of living for the economically disadvantaged.
Financial Instrument Utilisation
Fair by Design utilises financial tools strategically to support entities ranging from tech startups and community interest companies (CICs) to charities and private limited companies. These financial tools, such as loans and equity investments, offer the necessary backing for businesses to not only grow but also to improve accessibility and fairness in their respective markets. The ultimate goal is to foster an ecosystem where essential home-related costs are lowered for those who are most impacted by poverty.
