B

Bank

A bank is a financial institution licensed to receive deposits and make loans. Banks may also provide financial services such as wealth management, currency exchange, and safe deposit boxes. There are several different kinds of banks including retail banks, commercial or corporate banks, and investment banks. In most countries, banks are regulated by the national government or central bank. (Investopedia)

Biodiversity & resource management

The sum total of all surroundings of a living organism, including natural forces and other living things, which provide conditions for development and growth as well as of danger and damage. (Business Dictionary)

Bonds

A bond is a fixed income instrument that represents a loan made by an investor to a borrower. A bond has an end date when the principal of the loan is due to be paid to the bond owner and usually includes the terms for variable or fixed interest payments that will be made by the borrower. Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debtholders, or creditors, of the issuer. (Investopedia)

Business Model

A business model describes the rationale of how an organisation creates, delivers, and captures value, in economic, social, cultural or other contexts. The process of constructing a business model is part of the business strategy. The term business model is used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, business process, target customers, offerings, strategies, infrastructure, organisational structures, sourcing, trading practices, and operational processes and policies including culture. (EVPA).

C

Capital risk​

Capital risk​ is the potential of loss of part or all of an investment. It applies to the whole gamut of assets that are not subject to a guarantee of full return of original capital. Investors face capital risk when they invest in stocks, non-government bonds, real estate, commodities and other alternative assets. Also, when a company invests in a project, it exposes itself to the risk that the project will not produce future returns to cover its capital invested. (Investopedia)

Co-investment​

In private equity, co-investment is the syndication of a financing round or investment by other funders alongside a private equity fund. (EVPA)

Convertible debt

Loan that entitles the lender (or the holder of loan debenture) to convert the loan to common or preferred stock (ordinary or preference shares) at a specified conversion rate and within a specified timeframe. (Business dictionary).

Convertible subordinated debt

Subordinated debt is a loan or security that ranks below other loans or securities with regard to claims on assets or earnings. Subordinated debt is also known as a junior security or subordinated loan. In the case of borrower default, creditors who own subordinated debt won’t be paid out until after senior debt holders are paid in full. (Investopedia)

Cooperatives shares

Cooperative shares are shares issued by a Cooperative Corporation. (Law Insider)

Credit institution

An undertaking whose business is to receive deposits or other repayable funds from the public and to grant credit for its own account. (OECD)

Crowdfunding

Crowdfunding is the use of small amounts of capital from a large number of individuals to finance a new business venture. Crowdfunding makes use of the easy accessibility of vast networks of people through social media and crowdfunding websites to bring investors and entrepreneurs together, with the potential to increase entrepreneurship by expanding the pool of investors beyond the traditional circle of owners, relatives and venture capitalists. (Investopedia)

Crowdlending

Crowdlending allows individuals or businesses seeking to borrow money to be connected with investors seeking to lend out their money. This process removes the middle entity such as a bank or other financial institution, resulting in a better interest rate for both borrowers and investors. (thewahman.com)

Culture, media & arts

The arts and culture sector is understood to produce outputs that are unique, have symbolic meaning, and the production of which is controlled, at least in part, by those who generate the creative ideas at its foundation. (Creativeinfrastructure.org)

D

Debt

Debt is an amount of money borrowed by one party from another. Debt is used by many corporations and individuals as a method of making large purchases that they could not afford under normal circumstances. A debt arrangement gives the borrowing party permission to borrow money under the condition that it is to be paid back at a later date, usually with interest (Investopedia). Financial instruments by which borrowing is raised and repaid with interest (Oxford dictionary).

Donation

A donation is a gift made by an individual or an organization to a nonprofit organization, charity or private foundation. Donations are commonly in the form of cash, but they can also take the form of real estate, motor vehicles, appreciated securities, clothing and other assets or services (Investopedia).

E

Eco mobility

The term for the green alternative to the automobile-dominated transport systems and mobility patterns in our cities. (Ecomobilityfestival.net)

Education & social inclusion

The dictionary definition of education is: ‘the process of teaching or learning, especially in a school or college, or the knowledge that you get from this.’ (Cambridge dictionary) Hence, investments in education are targeted at enhancing and fostering this process.

Equity

Equity represents the amount of money that would be returned to a company’s shareholders if all of the assets were liquidated and all of the company’s debt was paid off (Investopedia).

Equity Crowdfunding

The process of “raising capital from the crowd through the sale of securities (shares, convertible note, debt, revenue share, and more) in a private company (that is not listed on stock exchanges)” (Forbes).

ESG

Environmental, social and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. (Investopedia)

F

Foundation

A private foundation is a nonprofit organization that is usually created via a single primary donation from an individual or a business and whose funds and programs are managed by its own trustees or directors. As such, rather than funding its ongoing operations through periodic donations, a private foundation generates income by investing its initial donation, often disbursing the bulk of its investment income each year to desired charitable activities. Investopedia

Funding mix

Financial mix is a term used in the corporate world to define a mix of equity to debt in a firm.

In other words, this term is used to describe the formula that defines how much capital is being raised by debt and how much is being raised by equity.

Funding Mix Workshop

During this workshop Solifin will help you define your ideal funding mix, introduce the notion of impact measurement and present its members and their financial instruments.

G

Geographical scope

Area where the business activities are carried out.

Grant

A grant is an award, usually financial, given by one entity (typically a company, foundation, or government) to another, often an individual or a company, to facilitate a goal or incentivize performance. Grants are essentially gifts that do not have to be paid back, under most conditions. These can include education loans, research money, and stock options (Investopedia).

H

Health & Well-being

Investments on this topic target the broader human health and well-being, and can for example relate to mental and physical fitness, disease prevention and treatment and life-enhancing services. (NNIP) (interpretation)

Hybrid Finance

Allocation of financial resources to impact-oriented investments combining different types of financial instruments and different types of risk/return/impact profiles of capital providers. (EVPA)

I

Impact Enterprise

Impact enterprises are companies that have the objective to create maximum positive impact-for their customers, employees, business partners and the public at large, as well as for the environment. (Virgin)

Impact investing

Impact investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return. Impact investments can be made in both emerging and developed markets, and target a range of returns from below market to market rate, depending on investors’ strategic goals. (GIIN)

L

Life insurance

Life Insurance is a contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to named beneficiaries upon the death of the insured. The insurance company promises a death benefit in consideration of the payment of premium by the insured. (Investopedia)

M

Matchmaking session

The matchmaking session allows you to pitch your project in front of investors and to have a 1:1 meeting with investors who match your sector, stage of development and funding needs.

Mezzanine financing

Mezzanine financing is a hybrid of debt and equity financing that gives the lender the right to convert to an equity interest in the company in case of default, generally after venture capital companies and other senior lenders are paid. Mezzanine financing tends to be completed with little due diligence on the part of the lender and little or no collateral on the part of the borrower. It is considered as equity on a company’s balance sheet. (Investopedia)

Microcredit

Microcredit is an extremely small loan given to impoverished people to help them become self-employed. Microcredit is also known as “microlending” or “microloan.” (Investopedia)

Minority Shareholder

A minority shareholder is a firm’s equity holder who does not have the voting control of the firm, due to the fact that he/she owns below fifty percent of the firm’s equity capital.

Mutual Funds

A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets. Mutual funds are operated by professional money managers, who allocate the fund’s assets and attempt to produce capital gains or income for the fund’s investors. A mutual fund’s portfolio is structured and maintained to match the investment objectives stated in its prospectus. (Investopedia)

O

Other

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P

Private fund

A private investment fund is an investment company that does not solicit capital from retail investors or the general public. Members of a private investment company typically have deep knowledge of the industry as well as investments elsewhere. To be classified as a private fund, a fund must meet one of the exemptions outlined in the Investment Company Act of 1940. The 3C1 or 3C7 exemptions within the Act are frequently used to establish a fund as a private investment fund. There is an advantage to maintaining private investment fund status, as the regulatory and legal requirements are much lower than what is required for funds that are traded publicly. (Investopedia)

Public fund

Public funds refers to money, funds, and accounts, regardless of the source from which the money, funds, and accounts are derived, that are owned, held, or administered by the state or any of its boards, commissions, institutions, departments, divisions, agencies, bureaus, laboratories, or other similar instrumentalities, or any county, city, school district, political subdivision, or other public body.

Q

Quasi-Equity

A form of company debt that could also be considered to possess some traits of equity, such as being non-secured by any collateral. (Business dictionary)

R

Renewable energy

Renewable energy is defined as energy that is produced by natural resources—such as sunlight, wind, rain, waves, tides, and geothermal heat—that are naturally replenished within a time span of a few years. (Sciencedirect)

Responsible consumer goods

Sustainable agriculture is a type of agriculture that focuses on producing long-term crops and livestock while having minimal effects on the environment. This type of agriculture tries to find a good balance between the need for food production and the preservation of the ecological system within the environment. (Study.com)

Responsible food & agriculture

Worldwide consumption and production — a driving force of the global economy — rest on the use of the natural environment and resources in a way that continues to have destructive impacts on the planet. Sustainable consumption and production is about doing more and better with less, and decoupling economic growth from environmental degradation, increasing resource efficiency and promoting sustainable lifestyles. (UN)

Rewards-based Crowdfunding

Rewards-based crowdfunding consists of individuals donating to a project or business with the expectation of receiving a non-financial reward in return, such as goods or services at a later stage (European Commission)

S

Savings account

A savings account is an interest-bearing deposit account held at a bank or other financial institution that provides a modest interest rate. Financial institutions that offer savings accounts may limit the number of withdrawals you can make from your account each month. They also may charge fees unless you maintain a certain average monthly balance in the account. In most cases banks do not provide checks with savings accounts. (Investopedia)

Scale-up

Your product/service has generated a constant source of revenues for more than 5 years.

Seed

You are testing the viability of your idea. The companies’ activities are not generating revenues.

Seed post-revenues/Pre-startup stage

Your product/service has been developed and is being marketed. The company has generated 1 year of revenues.

Shared savings

Shared savings consist, for the saver, in donating all or part of the income from his investment to a work of general interest of a philanthropic, educational, scientific, social, humanitarian, cultural or environmental nature.

Shares

Shares are units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends. The two main types of shares are common shares and preferred shares. Physical paper stock certificates have been replaced with electronic recording of stock shares, just as mutual fund shares are recorded electronically. (Investopedia)

Social enterprise

A social enterprise is an operator in the social economy whose main objective is to have a social impact rather than make a profit for their owners or shareholders. It operates by providing goods and services for the market in an entrepreneurial and innovative fashion and uses its profits primarily to achieve social objectives. It is managed in an open and responsible manner and, in particular, involves employees, consumers and stakeholders affected by its commercial activities.

The European Commission uses the term ‘social enterprise’ to cover the following types of business:

  • Those for who the social or societal objective of the common good is the reason for the commercial activity, often in the form of a high level of social innovation.
  • Those where profits are mainly reinvested with a view to achieving this social objective.
  • Those where the method of organisation or ownership system reflects the enterprise’s mission, using democratic or participatory principles or focusing on social justice.

There is no single legal form for social enterprises. Many operate in the form of social cooperatives, some are registered as private companies limited by guarantee, some are mutual, and a lot of them are no-profit-distributing organisations like provident societies, associations, voluntary organisations, charities or foundations.

Social Impact

The attribution of an organisation’s activities to broader and longer-term outcomes, which are in turn defined as the changes, benefits, learnings, or other effects (positive or negative, both long and short term) that result from an organisation’s activities. In academic terms, to accurately calculate social impact outcomes should be adjusted for: (i) what would have happened anyway (deadweight); (ii) the action of others (attribution); (iii) how far the outcome of the initial intervention is likely to be reduced over time (drop off); (iv) the extent to which the original situation was displaced elsewhere or outcomes displaced other potential positive outcomes (displacement); and for unintended consequences, which could be negative or positive. (EVPA).

Social Impact Bonds (SIB)

Mechanism consisting in calling on private investors to finance innovative projects aimed at making a measurable contribution to the resolution of problems with a known social cost.

Socially Responsible Investing

Socially responsible investing (SRI), also known as social investment, is an investment that is considered socially responsible due to the nature of the business the company conducts. Common themes for socially responsible investments include socially conscious investing. Socially responsible investments can be made into individual companies with good social value, or through a socially conscious mutual fund or exchange-traded fund (ETF). (Investopedia)

Solidarity-based investing

Solidarity-based financing proposes a revised relationship with money by conciliating initiative and solidarity within the economy. It supports various social or environmental ventures with citizen’s money. Your savings are invested totally or in part in activities like creating jobs, housing very low-income families, energy-saving devices or business start-ups in developing countries.

Start-up

Your product/service has been developed and is being marketed. The company has generated revenues for more than 2 years.

Subordinated debt

Subordinated debt is a loan or security that ranks below other loans or securities with regard to claims on assets or earnings. Subordinated debt is also known as a junior security or subordinated loan. In the case of borrower default, creditors who own subordinated debt won’t be paid out until after senior debt holders are paid in full. (Investopedia)

Subsidy

A subsidy is a benefit given to an individual, business or institution, usually by the government. It is usually in the form of a cash payment or a tax reduction. The subsidy is typically given to remove some type of burden, and it is often considered to be in the overall interest of the public, given to promote a social good or an economic policy. (Investopedia)

Sustainable construction & buildings

The goals of sustainable construction are to reduce the industry’s impact on the environment. Sustainable construction methods include:

  1. using renewable and recyclable resources;
  2. reducing energy consumption and waste;
  3. creating a healthy, environmentally-friendly environment;
  4. protecting the natural environment

(British Assessment Bureau)

Sustainable Development Goals (SDG)

The Sustainable Development Goals (SDGs) are a collection of 17 global goals set by the United Nations General Assembly in 2015 for the year 2030.

Sustainable Development Goals

Sustainable Investment Funds

Funds that invest in asset classes such as equities and bonds in the same way as traditional funds. But unlike traditional funds, they do not only take into account financial criteria. Indeed, they also focus on environmental, social and governance aspects.

U

UCITS

The Undertakings for the Collective Investment in Transferable Securities is a regulatory framework of the European Commission that creates a harmonized regime throughout Europe for the management and sale of mutual funds.

V

Ventures Capital

Venture Capital is financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks and any other financial institutions. However, it does not always take just a monetary form; it can be provided in the form of technical or managerial expertise. (Investopedia)

W

White pitching session

This session enables you to test your pitch and presentation and simulate a Q&A with business coaches. At the end of the session you will receive tips and feedback to maximize your chances when meeting impact investors.