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Venture philanthropy comes to Britain

UK venture capital is set to follow in the steps of the US with the launch of Impetus Trust, which will help medium-sized charities facing difficulties or seeking to expand.

The fund, which will act in a similar way to a traditional venture capital fund, has already raised £1.7m of a targeted £4m and will soon appoint a full time chief executive, according to Stephen Dawson, chairman of Impetus Trust and managing director of ECI Ventures.

Impetus will aim to provide long-term funding and management skills to people orientated charities with incomes between £250,000 and £10m, according to the Financial Times.

The fund's backers will receive no financial return. Current investors include venture capitalists, business people and grant-making charities.

Impetus will not take seats on the boards of the charities in which it invests but will provide specialist skills when needed. The funding will be drawn down over a period of three to five years.

The launch of Impetus comes three years after Dan Kranzler targeted $40m with the first ever entirely benevolent fund in the US.

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