Invest in for-profit and non-profit organizations raising the capital they need to make an impact.
Most impact investors focus on supporting private businesses combatting climate change or affordable housing, but many CDFIs and non-profits also need funding to further their mission-driven goals. Investing in these organizations can help bring about positive change in different ways, making it a valuable way to diversify your impact.
Let's look at how SVX US helps both for-profit and non-profit organizations raise the capital they need to make an impact and how you can participate with as little as $50.
Who's behind SVX US?
SVX began in 2007 with a vision of a world where all investments have a positive impact. With an initial vision to become a social stock exchange, the company launched an online database of impact investments in 2013 and an accelerator program to help impactful startups in Canada. Then, in 2018, it launched SVX US to offer opportunities to U.S. investors.
The initial SVX US issuer was TechSoup, a non-profit seeking to raise $11.5 million through a Direct Public Offering (DPO) of Regulation A+/Tier 2 securities. The company helps connect civil society organizations and changemakers worldwide to the resources they need to design and implement technology solutions for a more equitable planet.
By November 2021, SVX US was successful in its three-year campaign, raising $11.5 million through a $4 million DPO and $7.5 million through loans, recoverable grants, and donations. With a minimum investment of just $50, the offering drew more than 200 investors. And every $100 enables the firm to distribute $47,000 in resources to non-profits.
How SVX US works
The SVX US platform provides a list of investment opportunities that offer social and environmental benefits – and financial returns. The SVX US team reviews each issuer on the business case and the impact created to ensure that all deals meet their criteria. These deals may be structured as everything from preferred equity to debt securities.
The investment process involves four steps:
- Browse Offerings – SVX US lists all of its offerings without requiring investors to create an account. As a result, you can easily view the details of each opportunity and access public documents.
- Create an Account – You can quickly create an account to autofill the documents you need to invest and enable SVX US to verify your identification before processing documents.
- Complete Your Transaction – The actual investment process involves providing details for a subscription agreement, getting an e-signature for documents, and collecting your payment.
- Watch for Updates – SVX US will post any updates or reports to your account, making it easy for you to follow up with various offerings and track your financial returns and impact.
Why invest in SVX US?
SVX US provides access to numerous impact investment opportunities, including CDFIs and non-profit organizations looking to raise capital. With a minimum of $50, non-accredited investors can easily participate in many offerings and build an impactful portfolio. And the platform also makes it easy to receive updates over time and track your progress.
Of course, investors should keep in mind that private investments don't have the same liquidity as public investments. For example, you may not be able to sell your investment after purchasing it. Straight equity investments may also not have any value until there's a liquidity event, such as an IPO, which can take years to complete.
And finally, investors should ensure that they don't invest more than their legal limit in Regulation A offerings. Individual investors with an annual income or net worth of less than $107,000 can contribute either $2,200 or 5% of their annual income or net worth, whichever is greater.
The bottom line
SVX US offers investors access to numerous Regulation A opportunities with low minimums. As a result, it could be a valuable way to diversify any impact portfolio, especially when supporting CDFIs or non-profit organizations that are less common on other crowdfunding platforms.
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Dec 04, 2023
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Impact FocusCommunity Development
- Invest as little as $50 to support organizations making an impact.
- Access a range of different deal types, from preferred equity to debt.