The investment strategy of the NESsT Venture Fund (NVF) responds directly to the key challenges CSOs face in building the capacity and profitability of their social enterprises. The NVF strategy combines the provision of capacity-building support and financial capital investments to social enterprises:

Capacity-Building

Goal: To build the leadership and institutional capacity of CSOs to implement self-financing strategies effectively

Capital Investments

Goal: To provide access to financial resources for CSOs to start-up or expand self-financing strategies
Strategy: Provide multi-year, targeted and tailored capacity-building and consultation support to a portfolio of social enterprises to build their expertise, skills and knowledge of enterprise development and management.
Strategy: Provide a multi-year, targeted and tailored package of financing to a portfolio of social entrepreneurs to capitalize their start-up and growth.

The NESsT Venture Fund:

 

"[The NESsT Venture Fund approach to] venture philanthropy works very much like for-profit venture investing: NESsT scrutinizes the business plans of the nonprofit groups they're considering funding; after they've made an organization part of their portfolio, they continue to follow it, helping it raise further funding and fine tune revenue-generating projects. And the investor realizes a return on his/her investment -- but a 'social return' rather than a financial one."

excerpted from "Venture Philanthropy Brings 'Social Returns'," By Kristi Essick, Special to THE WALL STREET JOURNAL, December 28, 2001

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