An Insight from IVN – Israel Venture Network

Posted by on Jul 16, 2017 in News |  

We are accustomed to a world which is clearly divided into the public, business, and social spheres, each with a coherent area of activity. While distinct lines of separation have been maintained among them, recently a new sector of social business has emerged which includes enterprise seeking to mitigate Israel’s social market gaps and failures by using business tools and generating revenue.

The global economic crisis has reduced the philanthropic resources available to and in Israel. As a result, new organizations that blur the clear line between the business and the social sectors have emerged. In recent years, non-profit organizations have been developing their commercial abilities in order to reduce their dependence on external factors and maintain their strategic goals. Today, social businesses are developing their business plans at the outset of operations in order to function as self-sustaining entities from the beginning. A number of them are even choosing to register themselves as businesses rather than non-profit associations. Nonetheless, while many of them have social understanding and drive, they lack financial resources and business experience.

This is where IVN comes in: IVN identifies social gaps in Israel, then locates and nurtures enterprises that offer innovative solutions and working models that can be replicated, and finally, encourages tri-sectorial collaboration. IVN focuses on supporting and assisting social businesses by supplying close guidance by professional staff and volunteer business mentors, including leading business executives in Israel, offering capacity-building tools in areas of marketing, financials, sales and more, and providing loans whose repayment is based reaching pre-defined milestones. Because social businesses are viewed as investments, they must demonstrate both social and financial returns (ROI/SROI). IVN enables social ventures to become self-sustaining, transforming them into income-generating social enterprises.

To that end, in the summer of 2013, IVN began operating its Tandem Fund, the first social venture fund in Israel, which applies business standards to the quest to achieve social change, while leveraging an extensive network of entrepreneurs and executives in Israel and the U.S. Tandem is dedicated to creating opportunity and sustainable social change by investing in social enterprises that pursue innovative and entrepreneurial solutions to social challenges through IVN’s Social Venture Program. Every dollar invested is recycled back through the fund, with repayments from social enterprises invested back into other ventures to ensure a leveraged, long-lasting impact.

The investor choosing to become involved in this sector enjoys immediate personal benefits and satisfaction, including insight into an area that has the potential to greatly influence and improve the lives of Israelis, and, ultimately, the nation’s social fabric.

Without a doubt – a return on investment!

Michal serves as CEO of IVN and brings with her 25 years of business experience and a passion for social engagement. Michal’s professional background and area of expertise are focused on strategy and marketing. Michal was a partner at the international firm of Deloitte, managing Deloitte Israel’s consultancy group, after having established and managed Cellcom’s CRM department. Today, in addition to her role as CEO of IVN, Michal serves on a number of boards and various committees. She also lectures within academic and non-academic frameworks to promote this new social business sector.