|
Benefits of CapitalConnect |
|
|
|
Over the last few decades, social enterprises (for-profit and non-profit organizations
that exist to address a socioeconomic problem) around the world have gained in prominence,
as their impact on people’s lives has become increasingly evident. These organizations
are growing in scale, structure and reach, and their capital needs – both debt and
equity – are increasing as well. At the same time, the investing and lending community
worldwide is becoming increasingly socially responsible, and seeks to provide capital
support to these social enterprises. This growing interest has not been limited
to socially responsible investors and lenders, as mainstream players are also providing
capital to social enterprises. |
|
|
|
Despite increasing interest and widespread growth in this sector, the flow of information
between providers and seekers of capital is imperfect and asymmetric. This inadequacy
is the root cause of three related problems, all of which reduce the flow of capital
into social enterprises. |
|
|
|
Three Market Inefficiencies: |
|
|
|
1. |
Many social enterprises are unable to engage institutional lenders and investors
in the development sector because they are physically isolated or unfamiliar with
global financial markets. Similarly, many institutional funders want to lend to
or invest in these organisations, but are unable to easily connect with the ones
that meet their funding objectives. This lack of information flow prevents many
deserving organisations from obtaining the funds that they need. |
|
|
|
|
2.
|
Second, lenders and investors find it challenging to offload their debt or equity,
because they are unable to efficiently identify and communicate with a majority
of the financial institutions who might be interested in purchasing their holdings.
This restricted flow of information impedes funders’ ability to liquidate their
assets or diversify their portfolios, which curbs their incentives to lend or invest
in social enterprises. These disincentives, in turn, reduce both the volume of capital
flow and the efficiency of capital allocation in the social enterprise sector. |
|
|
|
|
3.
|
Third, industry players cannot track the price and volume trends of financial transactions
in the social sector, because no organisation or entity collects this information.
A lack of industry-wide benchmarks prevents industry players from knowing whether
they will receive a competitive price for the capital they seek to raise, lend,
or invest. This market inefficiency reduces the long-term viability of capital flow
into the social enterprise sector. |
|
|
|
|
What is CapitalConnect? How do you tackle these challenges? |
|
|
|
CapitalConnect is an innovative online marketplace that combines the features of
an online auction platform and a dating service. Institutional lenders, investors,
and social enterprises worldwide use our service to communicate with one another,
initiate financial transactions, and analyse market trends. |
|
|
|
Participants register by submitting their organisation's financial performance information,
which we review to verify its adequacy and accuracy. Once they have undergone this
initial due diligence process, they create their own profiles, control which organisations
can interact with them, search for members with similar interests, initiate conversations
that could lead to strategic partnerships, or send offers to these organisations
to buy or sell capital. Members will have access to aggregated information on the
financial transactions that occur between CapitalConnect's members, allowing them
to analyze market trends. |
|
|
|
What does CapitalConnect actually look like? |
|
|
|
The best way to understand how CapitalConnect works is to view and access our dashboard: |
|
|
|
Click here to take a tour of CapitalConnect’s dashboard,or |
|
|
|
|
|
Schedule a discussion or interactive online demonstration. |
|
|
|
|
|
|
|
|
|
Free one month Trial Period |