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Increasingly we see founders and entrepreneurs strive to solve a problem, develop and grow a business, create jobs, but all in a way which reflects their values and brings positive social and/or environmental change. By embedding social responsibility and environmental effects at the same level as financial performance, these companies are attracting investment from government funding, grants and impact investors.

Likewise, investors see the benefits of investing in such organisations as both government regulations and public pressures demand companies make a positive impact on society. Certain socially conscious investors are increasingly applying non-financial environmental, social, and governance (ESG) factors as part of their analysis process to identify material risks and growth opportunities.

What is impact investing?

Impact investing refers to investments made with the intention to generate a positive, measurable, beneficial social or environmental impact alongside a financial return.

B Corporations

Certified B Corporations are a new kind of business that balance purpose and profit. They are legally required to consider the impact of their decisions on their workers, customers, suppliers, community, and the environment and must meet the highest standards of verifies social and environmental performance, transparency and accountability.

To become a certified B Corporation, updates to Articles of Incorporation and other legal advice may be required and we have experience in these matters.

Legals

Social entrepreneurs are naturally passionate about their ventures, and don’t want to be bogged down in the legal ins and outs. Setting up your mission-led venture properly (share structure, articles of association, etc.), being legally ready for outside investment is critical including having appropriate employment contracts in place and protecting any intellectual property.

At MBM Commercial we understand your desire to get on with your mission, so we make the legal paperwork easy and straightforward by providing practical advice with a focus on value-add and clear and transparent fees. We work with you to ensure that you have:

  • an understanding of equity share capital
  • appropriate arrangements amongst the founders
  • clear intellectual property ownership and licensing rights
  • clear terms of appointment for all directors and employees
  • appropriate protections in relation to minority shareholdings, including information rights, investor controls and share transfer provisions
  • all basic corporate governance and company secretarial arrangements in place

We also place a great value on our network, so can help to connect you to potential investors and other social enterprise peers.

Impact Investment

We can help social impact companies with investment preparation and readiness, including seed funding, crowdfunding platforms, and other sources of funds.

Some of the impact investment deals that we have worked on include:

  • Sustainably – Crowdcube investment convertible loan note investment
  • IndiNature – raising £3m from the Scottish National Investment Bank, and unlocking £1m in grant funding
  • Celtic Renewables – raising £3.8 million investment by Crowdcube and private US and UK investors
  • Jiva Materials Ltd - £750k seed funding round led by Sky Ocean Ventures
  • Acting for SIS Ventures as part of a Series A funding round into a life science company

At MBM we have worked with several socially responsible companies all making a difference including:

  • A start-up pioneering a way for consumers to make charitable contributions
  • A renewable energy company using ground-breaking technology to create ethanol
  • A bio-tech reducing the need for animal testing
  • A company harnessing tidal power
  • A carbon dioxide recycling company addressing sustainable animal farming and reduction of CO2 emissions

 

Recent Deals

Our experience is clear from the deals which the corporate team have been involved in. View our i-Deals section.

Contact our Investment Solicitors in Edinburgh & London

If you are looking to set up a social impact company or are looking for investment, our team would be delighted to discuss all aspects of it with you. Please get in touch on 0131 226 8200.


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