The Community Forward Fund is proud to be on the cutting edge of new developments in the sector as one of the first dozen issuers on the Social Venture Connexion (SVX).
Impact ventures are defined as any nonprofit, for-profit business or cooperative that creates a demonstrably positive social or environmental effect on the communities in which it operates. In a time of reduced government spending and increasing demand on philanthropic granting, impact ventures are becoming increasingly important to the long term health of our communities. As a result, there has been amazing investment growth in the sector; at present the impact investing market in Canada is $5.3 billion, and has the potential to soar to over $30 billion within ten years.
That said, MaRS Discovery District research indicates that 70% of impact ventures report that they are challenged by a lack of access to capital. The Social Venture Connexion was designed to create a single point of access where investors and impact ventures alike could establish contact. Modeled on traditional stock market listings, SVX aims to coordinate a scattered marketplace by building a “strong local network of impact ventures, funds, investors and service providers.”
SVX has the potential to revolutionize the nonprofit sector in the following ways:
- SVX reduces the costs of raising capital by creating a public platform that links impact investors and impact ventures the amount of outreach and lead generation required.
- SVX performs basic due diligence on all listed ventures using standards based on those of the public markets, meaning investors are spared time and expense and can feel confident that their investments will ultimately have a tangible, triple bottom line impact.
Like SVX, CFF is a nonprofit capital market player committed to bridging the gap between investors and community groups. The SVX listing allows CFF to continue to grow its operations by networking with investors in a position to contribute to our fund, and fellow impact ventures who require our financial resources and know-how to do their important work.