Social Stock Exchange

Participatory notes United Kingdom 71 crowd investors so far
Where investment meets impact
£4,474,884
Pre money valuation
52.8%
Equity offered
£286,900
Already invested by crowd
£900,000
Committed by pros
0 days
Remaining
£250,000
Crowd target
100
Already 115% crowdfunded
This campaign ended on 2017-01-31

SSX thinks the current investment model is broken. The Social Stock Exchange has the objective to fix it.

It’s no longer just about making more money. It’s about making money more: more sustainable, more impactful, more responsible.
Enter Impact Investing.

Problem

Money is the currency that can create change, but do you know who’s impacted by your investments? The global landscape is changing and investors are being drawn into a world where they are disconnected from their money, not knowing how it is affecting those around them. From COP21, to Brexit, to the Sustainable Development Goals (SDG), we are at a crossroads in global capitalism and a solution is needed.

Solution

A radically new kind of stock exchange is accelerating the way capitalism can work for the people, but also for the planet and potential profit. The Social Stock Exchange empowers all, from people to businesses and investors, to create and share real value. This is the logical outcome from the urgent need for a socially impactful capitalism that creates an equal society, based on the following equation:

Ssx image

That’s why the Social Stock Exchange seeks to become the first worldwide access point for profitable impact investment opportunities. Its entire business model is based on stimulating progress by innovating a disruptive profit‑with-purpose investment exchange.


For the people. For the planet. For businesses and investors both willing and able to invest in profitable markets that work towards making the world a better place.


If we want to change the world, we all need to change the way capitalism distributes wealth. For this, we need to change the way capital markets work, period. We need to make capitalism work for everyone.


The Social Stock Exchange helps to unlock capital at scale, via a growing community of global social-impact investors, for all organisations and businesses that can demonstrate a social or environmental impact through their core activities.


At the heart of the Social Stock Exchange process lies the Impact Report, an independent tool used by qualifying companies to document and evidence this impact, which is published before they can be formally admitted on to the exchange.


Through its collaboration with the ICAP Securities and Derivatives Exchange , the Social Stock Exchange aims to give Members the ability to access a dedicated, live, public financial market for impact businesses on both its Growth Market and Main Board.


The Social Stock Exchange also supports early-stage impact businesses through private-placement capital raised for business development.


By investing in the Social Stock Exchange, you support a project that wants to lay the first bricks of the first impact investment market place.


You can start investing from 100 GBP.

Mission & Vision

Ssx people

The Social Stock Exchange’s mission and vision is to revitalise existing capital markets, and change the way these markets work to serve society’s purposes.

The Social Stock Exchange’s mission and vision is to revitalise existing capital markets, and change the way these markets work to serve society’s purposes.

How? By giving investors who value both social impact and opportunity, and financial return access to innovative capital markets, empowering them to connect their financial activities and liquidity with positive-impact markets and communities working towards a prosocial, sustainable global economy.

By investing in the Social Stock Exchange, which collaborates with ICAP Securities & Derivatives Exchange (ISDX), the Issuer Members get the ability to access a live dedicated public financial market for impact businesses through its branded social impact segment on both the Growth Market and Main Board of ISDX.
The Social Stock Exchange wants to change the world, and your contribution is key:

The Social Stock Exchange is seeking to raise 500,000 GBP minimum and 5,000,000 GBP maximum, with 250,000 GBP already invested by Inventures, a venture-capital fund investing in companies having a positive societal impact. This project impacts everyone, and therefore anyone can contribute to this crowdfunding campaign, whose objective is to raise from 250,000 GBP to 2,750,000 GBP.

Together we can multiply our impact.

The strategic goal of Social Stock Exchange is to:

  • Accelerate - Grow the network of local Social Company Advisors exchanges to drive local investments for local impact; develop partnerships with European exchanges; Ensure quality of marketing service

  • Consolidate – Strengthen brand and leadership position; Focus on Impact Investors, Governance and Compliance
  • Innovate – Further develop Impact Investor Outreach program along with online Impact methodology and assessment tool; Develop thought leadership resources

Social Stock Exchange Member Areas of Impact

  • Impact housing & local facilities
  • Income & financial inclusion
  • Physical health, mental health & well-being
  • Environmental conservation
  • Citizenship & community, arts, heritage, sports & faith
  • International development

Stakeholders

1. The Social Stock Exchange Members

Promoting the social and environmental benefits of its members is a key focus of the Social Stock Exchange. Members join a leading group of businesses dedicated to social and environmental change through their core financial activities.

A brief look at some of its members illustrates the diversity and scope of impact of the Social Stock Exchange:

  • Good Energy Group: Listed on the Social Stock Exchange, this 100% renewable electricity supplier and generator supplies over 55,000 electricity customers and 28,000 gas customers, and supports more than 93,500 homes, business and communities generating their own energy in the UK, saving a combined 78,398 tonnes of CO2in 2015.
  • Oikocredit: an international co-operative and social investor, dedicated to providing financial and technical support to communities in developing nations, financially included 37m people (mainly rural men and women), reached 325,630 smallholder farms, and created or sustained 124,000 jobs.
  • Chototel: a company addressing housing poverty, which affects 1.6 billion people globally, has implemented 14,00,000 days of safe, affordable housing.
  • ITM Power: is a company that manufactures integrated hydrogen energy solutions to enhance the utilisation of renewable energy that would otherwise be wasted. 7,373 tonnes of CO2 were saved in 2015 by using hydrogen instead of diesel.

For the full list of the Social Stock Exchange members making a positive impact, click here.

2. Investors

Investors who care about sustainability are better investors overall. Why? They are in it for the long term, which generates better returns than short-term investments.They care about the planet and therefore have a more diversified portfolio.They don’t cut corners to capitalise on short-term profits and results

Tomas Carruthers, CEO of Social Stock Exchange

The Social Stock Exchange enables companies to be listed, thereby facilitating investment in impact companies (private equity/private placement/bond). Securities can be bought, sold and managed as part of a regular portfolio.

3. The people behind the Social Stock Exchange

Social Company Advisers (SCAs)

The Social Stock Exchange has developed strategic partnerships with the City of London and beyond to bring together stakeholders with the right skillsets to assist members in raising their profile and capital. To that end, and to deliver value to its members, the Social Stock Exchange has partnered with 19 Social Company Advisers (SCAs) to support transactions, good governance and multi-stakeholder engagement.

Currently, the Social Stock Exchange is consulting with two types of partners:

  • Adviser members: The Social Stock Exchange has partnered with a network of SCAs, mainly professional organisations, which assist companies at various stages of their evolution. At the end of 2015, the Social Stock Exchange was working with 19 adviser members, all with different skills and specialities. These advisers also use their expertise with the Social Stock Exchange to develop their operations in the emerging impact sector.
  • Impact reporting specialists: These are the companies – mostly consultancies focused on ESG measurement – that assist in the compilation of companies’ Impact Reports for new applicants and existing members. The Impact Report Specialists update the Impact Report framework and suggest innovative qualitative methods to measure the positive impact that companies have in specific sectors. Currently, there are 10 Impact Reporting Specialists working with the Social Stock Exchange.

About the staff: Fifteen percent of the Social Stock Exchange’s share capital will be allocated to staff as share options. The intention is to help align the Social Stock Exchange’s vision and mission with the whole team and ensure that all staff share in the success of the company as it grows with future investors and the help of the MyMicroInvest crowd.

Key Outcomes: Summarized

1. Access to public markets:
The Social Stock Exchange was founded in 2013 as a company providing information and a framework (the Impact Report) to assess the impact of businesses in the UK. Today, that mission is to promote the impact sector by giving all investors, big and beginning, the opportunity to invest in impact businesses working to make the world more sustainable with new growth opportunities, better jobs and fairer prospects.

The Social Stock Exchange helps vetted social-impact companies access markets.

Of the 40 Issuer Members, 27 are currently private companies because of their early stage nature, and 13 are listed. Of the listed members, 5 are listed on ISDX in the SSX dedicated market segment for qualifying social Impact companies (4 are listed on the Growth Market and one is listed on the Main Board) and of the other 8 listed Issuer Members, 5 are listed on AIM and 3 are listed on the LSE.

2. Qualitative & quantitative impact assessment, aligning businesses & investor values:
To join the Social Stock Exchange, companies undergo a transparent and rigorous selection process that is independently validated in an Impact Report. The Impact Report template and metrics are clearly defined and the Social Stock Exchange regularly sits with social and environmental-impact assessment experts to improve the quality, framework and data of this report. The latest Impact Report is available here: http://socialstockexchange. com/assets/new/docs/SSX_Impact_Report_template_V3.pdf).

3. Generating demand in the impact sector:
In 2015, a total of 413.9M GBP was raised by the Social Stock Exchange members, 389M GBP on the official list of LSE, 4.9M GBP on AIM and 20M GBP via a partner, Funding Affordable Homes The same year, a record-breaking 54 applications were received (versus 9 in 2014), suggesting that there is a demand for impact investments opportunities if impact can be evidenced robustly. In 2015, the pass rate was 50% from initial application to membership.

A general misconception is that, due to a lack of visibility and credibility on financial markets, impact businesses are not profitable and are therefore not viable investment opportunities. The Social Stock Exchange addresses this challenge by verifying companies’ impact credentials via a carefully designed admission process. Impact investing can trigger a profitable cycle that scales because it matches profit with purpose.

4. Scaling impact:
The Social Stock Exchange wants to help impact businesses scale their activities by raising their profiles, improving their visibility and connecting companies to financial advisers, consultants and investors. This is achieved in various ways, e.g. through a vibrant events programme with access to impact investors, members’ networking events as well as an annual investor conference.

In 2015, the Social Stock Exchange directly raised more than 20M GBP for one member, enabling them to scale their activities and invest in projects that generated genuine positive impact. Most businesses are seeking to raise 1-50M GBP, with the majority looking for 5-15M GBP.

5. Democratising finance:
The Social Stock Exchange members’ securities can be bought and sold in small volumes to investors. This enables investors to invest in projects that either relate to their local community or in specific impact areas such as Biodiversity or Clean Energy.

6. Facilitating local impact:
Most impact occurs locally and the Social Stock Exchange’s core mission is therefore to establish local social stock exchanges that link local business with local investors and advisers.

One idea

One idea can change the world. The Social Stock Exchange is your ticket to investing with real impact in real impact markets designed to make the world a better place.

Invest now!

This campaign ended on 2017-01-31

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