Last update: 14/01/2020

TISE - First social venture capital investments in Poland

Tuesday, 14 January, 2020
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Our member TISE has made its first capital interventions using the FKIS Fund (Social Equity Investment Fund) by granting subordinated loans to two social enterprises, and also by taking up shares in one of them.
 
In autumn 2018, Social and Economic Investment Company won a competition organised by the Ministry of Funds and Regional Policy under the EU’s programme POWER for developing a pilot social venture capital fund for social enterprises. In December 2019, Larigo Group, a non-profit company from Łódź Voivodeship, and Stowarzyszenie Klinika Jeździecka from Kujawsko-Pomorskie Voivodeship were the two social enterprises to become the first investees. 
 
Social Venture Capital (SVC) is a method of financing using a venture capital strategy model and instruments known from the capital market to finance non-governmental organisations, social enterprises or activities that generate a large social impact. The traditional financing model is mainly based on loans or guarantees, and thanks to SVC, these entities can use the equity or quasi-equity instruments. 
 
TISE has established a company – Fundusz Kapitałowych Inwestycji Społecznych (FKIS Fund), which will carry out the investments on its behalf. 
 
In this project, we use our many years of experience in both operating in the traditional venture capital market for several years and in lending to social economy entities in Poland and in Central Europe for more than ten years, says Mikołaj Kowalczyk, President of TISE.
 
 
About the project
PLN 11 million has been allocated for capital investments under the SVC-FKIS- TISE project.  The funding comes from the EU’s Operational Programme Knowledge Education Development (measure 4.1. Social Innovation) and TISE’s own funds. Transactions may be concluded until end-June 2023 or until the funds are exhausted. The investments will be long-term, even up to 10 years. 
The project offers financial support in the form of the following two financial products: capital and subordinated loans (facilitating the acquisition of financing from other sources) and consultancy for supporting investors.
The Fund supports entities across the country by investing in social enterprises of various legal forms that pursue projects in the areas of care services, creating jobs for people at risk of social exclusion, assistance in achieving or maintaining independence, and ecology.