What are Social Venture Funds?
Social Venture Funds are SEBI Category I AIFs that invest in companies and enterprises creating positive social, environmental, or economic impact alongside financial returns. They operate under the Social Venture Fund (SVF) sub-category introduced by SEBI in 2013.
- Dual Returns: Financial returns + measurable social/environmental impact
- SEBI Category I Status: Regulatory recognition and oversight
- SDG Alignment: Portfolios mapped to UN Sustainable Development Goals
- Tax Incentives: Investments in eligible social enterprises may receive tax benefits
- UNPRI Framework: Many funds are signatories to UN Principles for Responsible Investment
Impact Measurement
These funds measure impact alongside financial performance:
- Theory of Change framework developed at fund level
- IRIS+ metrics used for standardised impact reporting
- Annual Impact Reports published for investors
- IFC Operating Principles for Impact Management followed
- Third-party impact verification for portfolio companies