Seedbed Project Outline

The SEEDbed Incubator Growing a resilient social venture ecosystem within an ambitious City and Country region

The SEEDbed Partnership: Large Rural Charity and Social Enterprise Centre Leading Social Enterprise University

Established Social Finance Intermediary

The Partners’ Pedigree: Dartington Hall Trust

Plymouth University

South West Investment Group

Place for social experimentation and enterprise innovation since 1925

Lead for Social Enterprise University Enterprise Network – SE-UEN

Big Society Capital social finance intermediary, member of Community Development Finance Association - CDFA

SSE Dartington delivers start up and development learning to 80+ social entrepreneurs per year

Lead for Growth , Acceleration and Innovation Network - GAIN

Since 1996 £14.5M in loan finance provided to over 1,250 SMEs and Start Ups throughout the South West

Leading provider of start up and grow on spaces for creative enterprises

Manages Formation Zones (Start Up spaces) and Cornwall Innovation Centres

Currently operating four loan funds with £13M available

120+ small and micro business tenants on the Estate

Home to new Future Enterprise Centre

Successful Public Sector Spin Out organisation

Schumacher College – delivers transformative education in ecology, economy and living systems

First Social Enterprise Mark accredited university

The SEEDbed Operating Environment: HOTSW Social Enterprise Network

Grassroots Network Somerset

ESSENCE – Exeter Social Enterprise Network

Why SEEDbed?

• Strong partnership:

– Large Rural Charity and Social Enterprise Centre – Established Social Finance Intermediary – Leading Social Enterprise University

• Unique regional challenges and opportunities – Start up Destination – Growing Pains – Mind the Gap

• Closely aligned to regional ambitions:

– Plymouth SE City & Cooperative Council – Cornwall SE Zone – Plymouth City and Peninsula Deal

Start Up Destination South West • 1,800 Start Ups per year in SW region – 8% of national total. - ONS 2011 • Devon and Cornwall show some of the highest rates for CICs in the UK per head of population. Iridescent Ideas CIC data • Over 200 SSE fellows from SSE Cornwall and SSE Dartington start up programmes. -SSE Data • More community ownership activity in South West than any other region in the UK – Plunkett Foundation

Growing Pains • 51% of enterprises in the SW fail within 5 years.

Highest in Plymouth (57%) and Torbay (56%). – ONS 2011 • 150 SEs in Plymouth, employing 7,000 people and generating £500M. Median turnover £90k and 1 in 3 turn over less than £50k. – Plymouth SEN 2012 • Perceived barriers to growth and sustainability – lack of finance (39%), economic climate/ recession (22%), prohibitive commissioning/ procurement (18%) – SEUK 2013

The Social Finance Gap • Grants to investment – a change of culture?

• Doing business for good – how robust is the business model?

• Taking risks – how confident are you?

• What’s out there? – debt, equity, mezzanine, performance based, convertibles, blends • Where can you get it? – Angels, investors, intermediaries, banks, crowds community Social Finance in the UK – Design Council 2014, Social Investment Explained – SEUK 2014

SEEDbed Highlights: • Intensive support and investment for early stage social ventures in the South West.

• Focus on regional themes: food, hospitality & tourism, place & community, culture & creative industries.

• 300 expressions of interest, 200 applications received, 100 interviews held, 50 places offered.

• £180k in direct support and £600k in loan investment available for 50 social ventures.

SEEDbed Outputs • 50 social ventures supported to develop robust business models.

• 28 social ventures supported to develop successful products and services and find routes to market.

• 10 social ventures supported to scale up and attract significant investment in their business.

• £800k invested into social ventures by end of 2016.

SEEDbed Impacts • SEEDbed will fill a significant market gap, allowing social ventures to develop and grow significantly.

• SEEDbed Ventures will be able to compete for tenders and contracts, service growing markets and play a significant role in supply chains and B2B activity.

• These SVs will be able to tackle challenges created by a shrinking public sector and environmental, economic and social pressures • A stronger presence and influence of SVs in the market place creates more local jobs, promotes diversity, strengthens the local economy and adds to community resilience.

How will SEEDbed work?

• Recruitment & Selection

– Concept/ Need/ Demand – Team/ Leadership/ Co-working/ Commitment – Progress/ Scalability/ Investment Outlook

• Foundation Stage

– Business Model Development, Market Analysis, Social Enterprise Fundamentals, Development Plan

• Development Stage

– Product/ service development, market testing/ trialling/ prototyping, business/ investment strategy

• Growth Stage

– Market development, brand development, growth management, contract readiness, exit strategy

SEEDbed Recruitment Stage

NovemberNovember 2014 – March 2015

SEEDbed Foundation Stage

April 2015 to June 2015

SEEDbed Development Stage

July 2015 to September 2015

SEEDbed Growth Stage

October to December 2015

For more information contact: Dirk Rohwedder SEEDbed Director The Dartington Hall Trust Tel :- 01803 847059 Mobile: 07770 880069 Email: Dirk.Rohwedder@dartington.org Web: www.dartington.org/seedbed