As an impact entrepreneur, you know that having a business-like approach to your ambition is vital to solving more of the difficult social and environmental challenges we face. But you also know that your money needs to align with your impact goals.
At City Funds, we know how a business-like approach can be put to good use in our city and communities. But in the short-term, impact entrepreneurs have to make hard trade-offs between profitability and the impact they really want to see. Because of this, finding the right type of finance for an impact enterprise or community project can be challenging.
Our Impact Investment Fund is designed to advance the ambitions of organisations building positive impact in Bristol. But more than that, we want to partner with you to create this impact. From application to approval to post-investment support, our goal is to help you bring your ambition to life.
Who we work with
We invest in organisations that are using a revenue-generating mechanism to solve a social or environmental problem in Bristol. As a result, our investment portfolio consists of organisations that are:
- local to Bristol, or partnered with a Bristol-based organisation
- planning to deliver impact in Bristol in line with our funding priorities
- generating revenue to support their long-term financial sustainability
- charities, social enterprises, or private companies with a social mission lock
How we help
We tailor our investments to maximise your long-term success. There are a number of different levers we can pull to design a financial solution that helps you achieve your ambition.
Anything from £50k to £1m
Small projects can have as much impact as large ones, which is why we offer a wide range of investment amounts, either released all at once or when you need it most.
Loans, equity or a mixture
Our investments are generally repayable loans, but we also can invest for an equity stake in a business. Convertible Loan Notes and Revenue Participation Notes are equity-like arrangements that link repayments to business performance and can be Sharia-compliant.
Flexible repayment schedules and holidays
We can structure loans with capital and interest holidays, or milestone-linked repayments. This can help you establish strong cash flows at key phases in your project.
Up to 8 years
The length of the investment significantly affects repayments. We can issue investments for up to eight years, and potentially profile these for longer. This means we can help you team up with a bank, for example, if you need to find other money to match their offer.
Affordable and accessible
Rates will vary depending on your proposal. We aim for our loans to be both affordable and accessible in comparison to the market for small business lending. Generally, our rates on interest-bearing loans will be between 4% and 10%.
Minimal requirements for guarantees or security
Security or parent-company guarantees may increase an investment’s affordability. We do not generally seek personal guarantees but do keep in mind that any property used to secure a loan may be repossessed if you do not keep up with loan repayments.
Investment Advisory Committee
Our IAC is made up of independent members with expertise in place-based impact investing
Victor TettmarIndependent Chair
Chris BluesProgramme Manger, Social Ventures - Skoll Centre for Social Entrepreneurship
Jane KhawajaInterim Director - GW4 Alliance
Mauricio Preciado-AwadInvestment Director - Big Society Capital
Craig CheneyDeputy Mayor - Bristol City Council
Andy StreetChair of City Funds
Richard MaleVenture Builder - Ufi VocTech Trust
Nicola MappSenior Business Manager - SWIG Finance
Mark CoatesCFO - Creative Youth Network
What's your ambition?
At City Funds, we want our investment to help unlock your ambition—from application to approval to post-investment support, our goal is to help bring your ambition to life.
Bristol & Bath Regional Capital are the investment advisers for City Funds.
The impact investment journey begins with a simple conversation with BBRC. No lengthy application forms, no deadline dates. Just drop us an email and we’ll take it from there.