IVN is at the forefront of the social business arena (fourth sector) in Israel, nurturing and growing this emerging sector and generating sustainable social impact by providing Israel’s social businesses with knowledge, financing and business world connections.
Established in in 2001, IVN is a venture philanthropy network of high-tech entrepreneurs, business executives, venture capitalists, corporations and philanthropists from Israel and the US. IVN’s network of members, along with its team of professionals, recruits and leverages its resources, contacts and experience from the business world in the social arena to develop this fourth sector.
What is a Social Business?
A social business is a social mission driven enterprise that uses business tools and whose revenues are channeled back into the business to achieve its social goals. A social business can be financed via philanthropic funding, government resources and through self-generated income. The overlying economic goal is to reach economic stability through self-generated income.
A social business measures its success not only by achieving its financial objectives (return on investment: ROI) but also by its social impact (social return on the investment: SROI).
What is IVN’s value to social businesses?
Most of IVN’s activities are focused on social businesses established to reduce social gaps, mainly in the fields of Employment and Career Advancement of Disadvantaged Populations (youth-at-risk, people with special needs, Orthodox, Arab & Ethiopian populations). IVN is also focused on social businesses engaged in lowering the cost of living, regional economic development, education and technology.
IVN operates in two main areas:
- Promoting regulations and legislation related to Israel’s emerging social business sector
- Investing in promising social businesses; mentoring, developing & growing said businesses
- Loan with preferential terms or a capital investment
- Grant through a network of investment partners worldwide
- Close guidance by more than 100 IVN mentors and the IVN professional team, using their extensive experience in business management, strategic consulting, venture capital financing, as well as marketing & sales.
Israel’s emerging social business sector is growing and has, over recent years, gained recognition from by the following government forums and ministries: the Prime Minister’s Office, Ministry of Economy, Ministry of Social Affairs and Israel’s National Insurance Institute. IVN, at the forefront of this movement in Israel, is a significant partner these efforts.
IVN’s assessment is that there are currently around 200 active social businesses in Israel, employing thousands of people from disadvantaged populations; the scope of their activities is estimated at NIS 200 million a year. Our involvement in this sector will lead to its growth, estimating that in 10 years, Israeli social businesses will employ about 100,000 people from disadvantaged populations, and the scope of their activities will reach around NIS 10 billion from self-generated revenue.
IVN is a non-profit association and all repayment of loans or returns on investments repaid by the social businesses is invested back into other social businesses for a leveraged, long-lasting impact.
By marrying business acumen & financing with high-impact social programs, IVN works towards the betterment of Israel’s social landscape. IVN’s derives its strength from identifying social gaps and appropriate change agents, as well as identifying the most appropriate partners with whom to bridge these gaps. IVN helps social business enterprises to grow and stabilize, and strives to replicate the successful models in order to have a wider and sustainable social impact. IVN members believe that this can be achieved by promoting social businesses in the fields of Employment and Career Advancement of Disadvantaged Populations.