Venturesome offers loans in return for future revenue
Social enterprises and charities looking for investment can now apply for a new scheme that mimics the selling of shares. Third sector lender Venturesome has been experimenting with an investment system known as ‘quasi-equity’. Organisations with minimal cash reserves can sell a percentage of their future revenue to borrow between £50,000 and £200,000. It will be repaid over a varied number of years and at a varied rate.
The risk-capital provider has already ploughed £300,000 into the scheme and hopes to lend a further £1 m to £2m in future.
Venturesome senior investment manager Joe Ludlow said: ‘This is the highest-risk lending we do but there is a real demand for it. We would effectively buy shares to fund the need of the organisation. If it does well, we get some money back and, if it doesn’t, we get less.’