Financial institutions and figures, such as Al Gore’s green investment vehicle and Sir Ronald Cohen, have donated a total of £4.25m ($6.5m) to new venture philanthropy vehicle Bridges Social Entrepreneurs Fund.
The initiative will focus on supporting social enterprises such as Café Direct and the Big Issue, according to the Financial Times.
Proceeds from the fund will be re-invested to fuel its continued growth.
Bridges Ventures’ Antony Ross, a former 3i private equity executive, has been appointed director of the vehicle.
Investors in the fund include Deutsche Bank, the Lehman Brothers Foundation Europe, former Man Group chairman Harvey McGrath, Doughty Hanson co-founder Nigel Doughty, the Apax Foundation, Bridges Ventures and 3i.
It has also received the backing of the National Endowment for Science, Technology and the Arts.