Applications open for childcare social investment fund

The new fund, launched by childcare minister Sam Gyimah last month, is designed to encourage the corporate sector to invest in the childcare market.

It is open to established early years providers and social enterprises to help them to expand their businesses.

The £500,000 Childcare Investment Readiness Fund from the Department for Education is modelled on a business support fund run by the Cabinet Office, which has helped around 50 charities and social enterprises win deals worth several million pounds.

Successful applicants will receive business and financial support to help them prepare business cases to make them more attractive to investors.

Applications for grants from the fund are being managed by Social Investment Business, which has previously supported charities and social enterprises to raise new social investment.

Grants of between £25,000 and £50,000 will be available for early years providers to buy in specialised support to cover the costs of developing their plans. 'The fund will offer specialised support from an approved investment readiness provider with a track record in supporting social ventures to secure investment,’ SIB said.

A panel of investment experts will assess the bids and decide which of them have the most future investment potential.

SIB said it intends to fund around 15 grants with funded activities carried out for around six to nine months and finished by March 2016.

Early years settings must put in an expression of interest by July.

Jonathan Jenkins, CEO of SIB, said, 'We are delighted to manage this Childcare Investment Readiness Fund for the Department for Education as part of our growing portfolio.

'Increasingly, there is evidence that this kind of targeted investment readiness support is delivering results. When delivered at the right stage, it can help transform social enterprises and charities and can open up a range of opportunities offered by the growing social investment market.'