Increasing impact-led investment is vitally important to helping the Government achieve its missions of boosting economic growth, building an NHS fit for the future and making Britain a clean energy superpower, a new report has revealed.
The report, Delivering Missions using Impact-led Venture Capital (VC) and Private Equity (PE) Investment, published today (Monday 10th March) is co-written by partners including the Impact Investing Institute, the British Private Equity and Venture Capital Association (BVCA), ImpactVC and Better Society Capital.
Impact investment intends to create social or environmental impact alongside financial returns. Britain’s impact investing market currently sits at £76.8bn and has been outgrowing the wider market in recent years. Impact investment into Government missions can grow through a strong enabling environment, as laid out in the recommendations of the report.
Recommendations for policymakers and investors cover capacity building, deal-flow and embedding social impact, including to:
· Upskill investors in place-based impact investing
· Align R&D funding with NHS priority areas to drive innovation
· Incentivise early-stage investment in high-impact businesses
· Clarify investment pathways with a net zero and climate adaptation strategy
· Embed social impact into business and climate investment decisions
Chris Hayward, Policy Chairman at the Corporation, said:
“The UK is a Centre of Excellence for impact investing and its position provides it with a unique opportunity to unlock capital which can be used towards Government missions.
“Impact investment is an underestimated source of capital that can help the Government go further and faster in delivering sustainable economic growth.
“Our recommendations – for both government and the market – are geared towards meeting increasing momentum for social impact in investment and business head on.”
Sarah Teacher, co-chief executive at Impact Investing Institute said:
“The UK is a global leader in impact investing with significant untapped potential to scale. By directing impact capital towards national missions including economic growth, healthcare innovation, and clean energy transition, we can address urgent societal challenges and drive meaningful, inclusive growth. The time is now for Government and investors to seize these opportunities and further cement the UK’s leadership in impact investing.”
Michael Moore, chief executive at British Private Equity and Venture Capital Association (BVCA) said:
“The UK must take the opportunity to build on our status as a leader in impact investing.
“This report evidences the role played by the private capital industry in meeting the Government’s missions and shows that with the right enabling environment in place, impact investing can make an even greater contribution to solving some of the nation’s biggest challenges.”
Douglas Sloan, managing director of Impact Venture at Better Society Capital, said:
“This report clearly outlines how venture capitalists and the Government can support each other, and we’re proud to have played a role in uniting the sector to pool and share collective expertise.
“VCs have already demonstrated their commitment to impact through ImpactVC, and we trust these recommendations will resonate with the Government. This report aims to drive action toward building an ecosystem where both venture capital and the country can thrive together.”
The White Paper, Delivering Missions using Impact-led Venture Capital (VC) and Private Equity (PE) Investment, was written by: The Corporation, Impact Investing Institute, British Private Equity and Venture Capital Association (BVCA), Impact VC and Better Society Capital.
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