Sustainable funding schemes #SFL

An absolutely essential, mandatory element of a sustainable business model is a stable funding scheme. In order to actually propose an effective solution for a certain social problem, it is crucial to find sustainable investment sources — this way a social impact of meaningful scale is achieved.

The social entrepreneurs should take into account that their and their potential investor’s visions should be similar — as well as to think of what kind of strategic support can the funder offer, beyond the monetary capital. A shared vision is mandatory for impact.

Each funding source, no matter organization or an individual, have their own set of commitments and obligations, schedules, and timelines. Often, these objects are dedicated to a specific social topic or geographical location-based. It is important to keep in mind that, while a crowdfunding campaign will help you short-term, a connection or a stable professional relationship with an investor might offer sustainable funding for years ahead.

Market measure or checking the waters

In order to get started with your social business idea, one of the easiest ways to test and validate it is to:

👉 Bootstrapping
👉 Pitching to your relatives, friends, and network

Both of these ways might accumulate just enough funds to get your idea to the first stage of creation and testing. This enables the entrepreneur to gather feedback for their initial solution and improve it prior to presenting it to investors — proving the market requirement.

Building and launching

This is the stage where the product gets an injection of funds in order to be built, elaborated, and marketed. This is the step where the impact starts. Such momentum can be achieved mainly with:

👉 Crowdfunding
👉 Incubators
👉 Accelerators

Incubators and Accelerators offer the participating entrepreneurs the resources they need to grow — not just financial benefits. Often the crucial support comes in form of mentorship, network building, and simply exposure for the new entrepreneurs — this step wouldn’t be possible without pro bono experts-mentors in start-up communities.

Them sharing the knowledge actively participates in growing, fostering, and helping the common good to flourish.

Accelerators prepare the social entrepreneurs to search, find and secure further investments with angel investors, venture capital, and other equity investments.

Growing and scaling

Don’t worry — a lot of investors see the substantial meaning behind #impactinvesting and the industry is on the steep rise. Investors often choose based on:

👉 Stage of business (Early or Developed)
👉 Geography
👉 Social impact area

However, it is all about creating impact and creating it in a scheme or business model that is sustainable. The common goal is to enable social good.






Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

The Next Generation Of Inventory Management: Our Seed Investment In Cogsy

The 10 Most Innovative Ecommerce Brands of 2018

The Value of Values

Future Strategy and ASEAN Digital Plan for ICT industry

What the “Made In…” Product Label Says About Your Business

12 Facts in 12 Years of BRIGHT Indonesia

Searching for Africa’s San Francisco

Sony Teams Up With Honda To Build EVs, First Model Coming In 2025

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store



More from Medium

Honoring film legend Sidney Poitier and more–Herberger Institute highlights from January 2022

Traslation of my article about Zunami Protocol from Russian to English.

Axelar Network — Future or Not?

Secret Network Announces $400M in Ecosystem Funding and Reveals New Investors DeFiance Capital…