Making a Difference

The portfolio companies of Ferd Social Entrepreneurs (FSE) created a positive impact in the lives of more than 70,000 people in 2022. – Our goal is for these companies to grow stronger so they can impact even more people, says Director Katinka Greve Leiner.

We invest to create social impact. At the end of 2022, our portfolio consisted of 10 companies and two fund investments. In order to optimize our social impact, we assess the social outcomes in all stages of our investment process, and link the financing to the social impact, also known as impact-linked financing.

– We have always been committed to measuring the actual social impact that companies create for their beneficiaries. It is challenging work, and we remain humble as we continue to be on a learning journey after all these years, says Katinka as she presents FSEs 10th Impact Report.

Maximizing the impact

She explains that the companies actively use frameworks and methods within the field of Impact Measurement and Management, methods that are gaining increasing attention and consensus, both internationally and in Norway.

– The companies in our portfolio measure social indicators that provide them with important information to enhance and maximize their social impact.

The companies in FSE’s portfolio are often at different levels of maturity depending on how long they have been measuring their impact, but according to Katinka, all of them have moved in the right direction. Several of the companies, such as Unicus and auticon, have implemented relatively advanced measurement systems.

– Both companies employ people with autism spectrum diagnoses as IT consultants. Through Impact Measurement and Management, they can document positive changes in the lives of each individual, corresponding to an increase in quality of life and improved mental health, she says, continuing: – We believe it is important to measure such concrete effects. If we only report and count the number of people employed, we miss out on important information such as how the employees performed, how they experienced the work, how long the employees stayed, and what it meant to them to get the job.

FSE focuses particularly on companies within four key areas:

  • Preventing school dropout
  • Enhancing the quality of life for individuals with autism spectrum diagnoses
  • Increasing inclusion in the labor market for individuals who, for various reasons, are excluded from the labour market
  • Improving the quality of life for the elderly, especially those with dementia.

In 2022, the companies in the portfolio collectively had a positive impact on 72,500 people, with approximately 50,000 experiencing life-changing impact and 20,000 experiencing life-improving impact.

– As an investor, it is very rewarding to be allowed to work with companies that make a real difference in people’s lives. Following them over time is both enjoyable and very exciting, says Katinka.

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The digital tools developed by Lifetools help vulnerable individuals without verbal speech to comprehend and be understood. Photo: Simen Falck


The importance of inclusion

FSE is a long-term and engaged investor. In 2022, its business developers contributed over 3,000 work hours to the companies and funded approximately 700 hours of expertise from external consultants. Katinka explains that they don’t just provide funds and leave the companies to their own devices.

– We’ve found that our portfolio companies achieve much better results when we actively engage as business developers. Even though the companies in the portfolio are at different stages of maturity, none of them are fully developed.

Social entrepreneurs depend on patient, risk-taking investors who are willing to participate in building a demand for their products or services, a process that may take years.

– Beyond creating social impact, our goal is for the companies to become resilient and growth-oriented so that they can reach even more people, she says.

A common theme among several of the companies in the portfolio is inclusion, both in education and the workplace.

– There are groups of people in society who, for various reasons, do not get to use their abilities. This is a universal human need we all have, which is why it’s so wonderful to see that several of our portfolio companies are coming up with new and inclusive solutions.

More mature companies

Johan H. Andresen was the first Norwegian investor to get involved in social entrepreneurship and one of the first to use the term in Norway as early as 2007. Katinka Greve Leiner has led FSE since its inception in 2009 and believes that much has changed over the years.

– Social entrepreneurship has evolved from being a relatively unknown concept to something most people are positive about. Because there is a market with opportunities for both social and economic returns, there are also more mature companies beginning to emerge. This allows us to be a more professional investor, she says.

FSE welcomes more investors to the field of social impact investing.

– The ecosystem grows rapidly with several players now investing in early-stage social impact companies, allowing us to focus on those that are a bit more mature, says Katinka.

FSE has established the accelerator program called Impact StartUp, where impact companies receive assistance in developing sustainable business models.

– The purpose is to provide an offering to start-up companies that are at an early stage and not yet ready for an investment from us. This initiative is also part of our work to strengthen the ecosystem for social entrepreneurs in Norway and the Nordic region, she concludes.

Downloads

Read more about FSE and the social outcomes of the companies in our Impact Report.