Social ventures that are financially supported through the Social Venture Fund will be reviewed on the basis of the following criteria:
a. Strong Social Impact
What kind of social and environmental impact will the work of the social venture provide and who or what will benefit from its work?
b. Financial capacity
Are the ventures, in which we are investing, in good financial condition? Are they able to repay the invested capital including the agreed interest? In the case of equity investments: Is there a realistic chance for an exit?
c. Scalability
Is the business model of the social venture scalable? How does the scalability help to improve the existing challenges?
d. Best-Practice
Is there already another business model, which offers the same product or service on a more cost efficient basis?
e. Criteria of exclusion
Explicitly excluded are projects which do not have a positive social or environmental impact and/or do not have a positive financial return on investment. This includes directly or indirectly any projects or ventures which reside in the areas of nuclear energy, arms industry, addictive drugs etc. Also excluded are ventures that may include child labor as well as organizations with a certain political alignment or with a political or religious fundamental orientation.
The Social Venture Fund does not participate in Turn-Arounds (financial reconstruction cases) or pure measures for job preservation. Risk and opportunities should be shared equally between both parties involved.
