The Cabinet Office has launched a £10 million Social Incubator Fund that will give grants to up to 10 intermediary organizations for investments in start-up social enterprises.
Intermediaries will apply for grants between £50,000 and £250,000 per year for up to four years to cover operating costs, and grants between £100,000 and £750,000 per year for their investment books, to be allocated over 12 to 24 months.
The Cabinet Office has announced that Emerge Venture Lab in Oxford and Bethnal Green Ventures in London are two intermediaries taking part in the scheme.
Big Lottery Fund will be managing the fund and will make grants in three rounds, starting January 2013.
“We want to help social entrepreneurs to create innovative solutions to difficult social problems. The Social Incubator Fund will significantly increase the number and quality of early-stage social ventures in the UK,” said Nick Hurd, Minister for Civil Society.
The Social Incubator Fund is part of the Investment Readiness Programme, which includes a £10 million Investment and Contract Readiness Fund managed by The Social Investment Business that began last month for organizations beyond the start-up stage.