Investment Capital

RISE invest & Action Invest funds

The purpose with the RISE invest and ActionInvest programmes are to offer investment capital to facilitate social enterprising start-up and scale-up. Our social enterprises shall offer products and services requested for by the local or international customers, and if possible provide employment opportunities.

Action Invest and RISE invest programmes are unique as they target equal partnership social enterprising. A partnership  that shall benefit all partners. Another  key objective is that the ActionInvest and RISE invest funds shall never be consumed but always be fully recovered.

The paid-back capital is used to copy successful programmes, scale-up or initiate new activities.  ActionInvest and RISE invest programmes benefit from external financial auditing and evidence based impact assessment.

It shall be noted that RISEinvest and ActionInvest are NOT micro-credit programmes and HR&S and Action10 are neither banks nor aid institutions or charities.

unsplash - investment capital

Conditions

Loan management

The RISE Centres manages a RISE invest fund and possibly an Action invest fund, and give out loans to social entrepreneurs with 10 % interest.

The funds are collected through fundraising campains targeting crowdfunding, monthly givers and major givers. Funds are kept at a  local RISE Centre bank account and the loans must be paid back to the RISE Centre account without exception. 

Each project starts small and scale firmly. The targeted fund level is EURO 30,000 per project. When the target amount for a certain fundraising campaign has been reached, then the fundraising for that programme ends. The RISE invest fund is then expected to manage a the business until it can manage by itself. The the same fund is given to another business.

The interest shall contribute to the salary of one accountant and one programme manager, the bank account fees, money transfer costs, as well as external auditing and coaching.  The level of external coaching is agreed on by HR&S and the loan taker together.  The coaching staff shall be assigned by, or at least be approved by the RISE Centre management ad HR&S Sweden. The coaching staff can be employed by the RISE Centre. Coaches are reimbursed minimum EURO 300 per year and assignment.

The accountability management includes monthly bookkeeping with bank account statements and internal control as well as quarterly external auditing yearly auditing report and management response, quarterly programme surveys with yearly reporting and monthly coaching of the HR&S practical strategies.

Each RISE Centre can run several RISE invest and ActionInvest units.

Loan taker

The loans are paid back with 10% annual interest. Periodical bank accounts statements and annual external auditing are used as evidence for that the investment capital is managed and paid back according to agreement. 

The first loan  shall be small and a second larger loan, and other further loans, shall only be granted if the business is well managed. The loan takers contribute financially with 10 % of the request loan amount, which is paid back when the loan agreement has been cleared. The loan taker provides a guarantee, the type of guarantee is depending on the context. The guarantee can be an asset, and a cooperative approach and a social structure aupport and control network.

In case the social business idea is to give out loans to small-scale businesse, then the same logic concerns the business managers and the RISE Centre member entrepreneurs. The Programme managers shall then support the loan takers by i) informing locally about the concept of RISE invest / Action Invest and collect approval from the relevant authorities, ii) coordinate the local partners and periodically collect pay-back money, iii) provide training on business management adapted to the local circumstances, and iv) provide direct coaching and address challenges. The loans are paid back with 10% annual interest. Periodical bank accounts statements and annual external auditing are used as evidence for that the investment capital is managed and paid back according to agreement. 

RISE invest

The RISE invest fund is managed by HR&S.

The capital for the RISE invest funds is raised through Crowd-funding “StartSomeGood” and through major givers.

HR&S charges 20 % of the raised funds, the crowdfunding platform 5 % and the Swedish Government 25 % in tax.

Action Invest

The Action Invest fund is managed by Action10 in Sweden. www.Action10.org.

The capital for the ActionInvest fund is raised through the Crowd-funding platform “Global giving”, Action10 monthly givers and other donations.

3 % of the raised funds remains in Sweden to cover direct administration costs and 97 % is trasferred to our partners in Sub-Sahara Africa.

Global giving is an active platform and charges 12 % of the raised funds.

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