ABSTRACT

One of the key elements of starting and running a social venture is to find capital. Without money, however small the amount, no venture can begin. But securing the financial resources to start a new venture is not always an easy task, particularly for social ventures that do not often provide positive financial returns on investment. The purpose of this chapter is to explore how social ventures raise much-needed capital and manage their financial resources. It intends to help students and would-be social entrepreneurs to address the following questions:

• How do social ventures raise the funds they need? • Are the conventional fundraising techniques that are used by commercial ventures

applicable to social ventures? • Can other means of raising funds, such as bootstrapping, microfinancing, and crowd-

funding, work for social ventures?