Nesta launches £25m impact investment fund

Nesta will back companies seeking to address social challenges, primarily in the UK but with the potential to expand internationally, the VC told unquote".

The fund has an eight-year investment period, with a possible four-year extension and will back around 20 early-stage companies.

Investors
Current investors include Big Society Capital, which launched in April this year and recently made its maiden investments, alongside the Omiyar Network and Nesta. A final close is expected in the next 18 months and will focus on including high-net-worth individuals and other institutional investors among its LPs when it has a more established track record.

Investments
Nesta Impact Investments will make capital commitments of £150,000 and above over a three- to four-year investment period. The fund will target companies seeking to address social issues surrounding health and well-being of an ageing population, education and employability of young people, and sustainable communities.

Early-stage companies that have completed a seed round of financing will be the focus of the fund, which aims to reap returns of 5% IRR. Co-investment opportunities in later-stage firms will be considered.

Parent company Nesta, an independent foundation that provides grants and research to support innovative social enterprises, will be an important source of dealflow for the VC.

People
Joe Ludlow is director of the fund, with Matt Mead as chief investment and financial officer.

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• Topics
• UK / Ireland
• Venture
• United Kingdom