Catalyzing $200M for Social Entrepreneurs to End Poverty

Summary

In 2024, Miller Center for Social Entrepreneurship committed to raise $20 million in order to directly deploy more than $26 million for social entrepreneurs worldwide working on the frontlines of ending global poverty and protecting the planet. By the end of 2030, they will directly invest in 120 social enterprises that are predominantly women-led and locally led. Through their investments, Miller Center will leverage their de-risking investment power to unlock 10 times the capital for these traditionally excluded and undercapitalized entrepreneurs, catalyzing $200 million for social enterprises around the world. These investments to support the global social enterprise ecosystem will focus on emerging markets and positively impact over 200 million individuals served by social entrepreneurs working to eliminate poverty through their impact-focused businesses that put people and the planet first.

Approach

Miller Center for Social Entrepreneurship commits to raise and deploy $20 million by 2030 in order to catalyze $200 million for social entrepreneurs worldwide who are working on the front-lines of ending global poverty and protecting the planet. To achieve the goal Miller Center launched an impact investing program, Miller Center Capital, that invests in graduates of Miller Center’s flagship Accelerator Program. By funding predominantly women-led and local-led social enterprises, Miller Center will empower historically marginalized changemakers to build a more green and resilient future.

Miller Center Capital will accompany social enterprises by raising and deploying three separate funds, which provide different layers of support on the capital stack: the innovation, growth, and blueprint funds.

The Innovation Fund, which has reached $2.23 million in assets under management (AUM) during the initial quiet raise, will grow to $7 million in AUM by 2030 and provide affordable debt capital to social enterprises in the post-revenue, early growth stage on their journey to scale, funding approximately 75 enterprises. This fund will utilize a mix of recoverable and non-recoverable grants to target capital preservation for philanthropic investors. In collaboration with Beneficial Returns, an impact investing fund manager, Miller Center Capital will deploy innovative deal structures to push impact investing frontiers and share best practices with other ecosystem partners.

The Growth Fund will grow to $12 million in AUM by 2030 and provide larger debt investments to social enterprises farther along their journey to scale, funding approximately 15 enterprises. This fund will target risk-adjusted returns for impact investors. Miller Center Capital will provide bespoke transaction advisory services and investment syndication support.

The Blueprint Fund’s pool of capital will reach $1 million by 2030 and provide catalytic concessionary capital to early-stage Accelerator Program graduates, funding approximately 30 enterprises. By being a first-mover supporting social enterprises considered high-risk by the market, Miller Center Capital aims to de-risk future investments through concessionary support and grow the universe of investable social enterprises.

Action Plan

2024:
Innovation Fund: $.5 million raised from 5-10 investors, Pipeline of 300+ prospects, weighted value of over $3 million
Key Activities: SOCAP (Public and private events highlighting impact first investing and venture philanthropy to support fundraising) ; Latimpacto and ANDE sessions submitted on the same topic.

2025:
Innovation Fund: $2.25 million raised from 20-30 investors & fund closed at $5 million AUM, 15 investments made, $2.25 million deployed
Growth Fund: $0.75 million raised from 5-10 investors, pipeline of 200+ prospects, weighted value of $3 million
Key Activities: Conferences including AVPN, Skoll, Sankalp, SOCAP, ANDE, Latimpacto. Reengaging existing investors in new fund opportunities.

2026:
Innovation Fund: 15 investments made, $2.25 million deployed
Growth Fund: $2.25 million raised & first close at $3 million AUM, 3 investments made, $3 million deployed
Blueprint Fund: $500,000 raised & fund first close at $500,000, 2 investments made, $50,000 deployed

2027:
Innovation Fund: Additional $2 million raised to $7 million AUM total, 15 investments made, $2.25 million deployed
Growth Fund:, $4.5 million raised, 3 investments, $3 million deployed
Blueprint Fund: 7 investments made, $175,000 deployed

2028:
Innovation Fund: 15 investments made, $2.25 million deployed
Growth Fund: $4.5 million raised, fund second close at $12 million AUM, 3 investments, $3 million deployed
Blueprint Fund: $500,000 raised, fund second close at $1 million, 7 investments made, $175,000 deployed

2029:
Innovation Fund: 15 investments made, $2.25 million deployed
Growth Fund: 3 investments, $3 million deployed
Blueprint Fund: 7 investments made, $175,000 deployed

2030:
Innovation Fund: 15 investments made, $2.25 million deployed
Growth Fund: 3 investments, $3 million deployed
Blueprint Fund: 7 investments made, $175,000 deployed

Background

Social enterprises – businesses that put people and planet first, instead of primarily seeking profit generation, and reinvest revenue in their primary social or environmental mission – continue to grow around the world. According to research by World Economic Forum, social enterprises make up approximately 3% of businesses worldwide, generating over $2 trillion in annual revenue and creating over 200 million jobs. Despite these impressive figures, only 5% of social enterprises survive beyond a decade. In part because worldwide social enterprises face a funding gap of $1.13 trillion. Meanwhile, women-led ventures are only funded at 2% compared to their male-led counterparts.

For over 25 years, Miller Center for Social Entrepreneurship has been a leader in the global social enterprise movement, having served more than 1,400 social entrepreneurs based in over 100 countries and who are impacting hundreds of millions of lives. Miller Center intimately understands the funding needs and challenges faced by social enterprises, particularly while they are in the “valley of death” and need appropriate support to accompany them on the journey to scale their impact.

Progress Update

Partnership Opportunities

Miller Center’s principal challenge and impetus for the Clinton Global Initiative commitment is fundraising. The Innovation and Blueprint Funds will raise a mixture of recoverable grant and non-recoverable grant capital. The Growth Fund will raise risk-adjusted return-seeking debt capital. Miller Center Capital will need to engage with a wide range of impact investors and philanthropic donors to achieve the programmatic aim. The objective of all their funds will be impact-first, championing a venture philanthropy model that they hope catalyzes inspiration and action across the impact investing spectrum. The Innovation Fund is targeting private foundations, corporate foundations, and high net worth individuals for grants or recoverable grant investment from $100,000 – $500,000. The Growth Fund will target private foundations and high net worth individuals for program related investments of $100,000 or more. Miller Center is also interested in media support primarily as a means of achieving the fundraising targets and to amplify the success stories to build the field., Miller Center for Social Entrepreneurship offers their flagship Accelerator free of charge for social entrepreneurs that are post-revenue, early-growth, and looking to scale. In particular, they focus on climate resilience and women’s economic power as well as supporting women-led and local-led enterprises. They welcome referrals to their Accelerator program and are always happy to share their best practices accrued from over 20 years accelerating social enterprises worldwide.