Social Impact Bonds – first larger example

An experiment is now running in Great Britain, where the Department of Justice act as a risk capitalist to stimulate new ways of preventing young criminals to commit new crimes.

Different actors are working with the means, methods and investments that are considered to be required in order to achieve this. These efforts are financed by venture capital, where the investors have an agreement with the Department to get a return on investments (ROI) when the efforts have succeeded. This type of agreement is called Social Impact Bond, and it is the first time it is implemented on a larger scale in Europe.

Interesting effort from the Government! Read the article here.


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