3 Steps and One Giant Leap for Barking and Dagenham

Our community-led investment GROW Fund successfully reached people that other funders and social investors don’t often reach.

70% of applicants and recipients of the GROW Fund were from Black and ethnic minority communities who often lack equitable access to capital.

As a team we didn’t explicitly target those communities. Instead we involved members of those communities in shaping the language and terms of the Fund, and they helped us promote the Fund within networks we couldn’t reach directly

“It’s often assumed that people from deprived communities don’t apply for funding due to a lack of awareness, but our experience shows that organisations are aware—they just don’t see themselves reflected in the opportunity.”

Outlined below are a few things other funders could do to reach new communities and there’s more detail in our GROW Fund learning report.

Step one: Trust in people’s ability to make decisions

The GROW Fund has shown that twelve individuals without previous professional financial experience can design a fund that resonates with those who need it most—people who previously felt disenfranchised by the funding system. 

By reframing grantee or investee relationships as partnerships, funders are likely to yield longer-term relationships, greater impact and higher repayment rates.

Step two: Take bigger risks

Too often, we hear concern from funders about “early stage concepts” and a lack of a “proven track record.” Not only do we hear this about local ventures but we heard it in fundraising for the GROW Fund. Most people we fund would never pass the first round of due diligence of other funders/investors. 

If more funders adjust their terms of engagement, they can direct funding where it’s needed most.

Step three: get involved earlier

How do funders expect catalytic transformation without offering early-stage support? In building a social investment market from the ground up we realised the importance of offering support at various layers. We’re offering idea grants at £2,000 each, we’re offering investment awareness education, we’re offering a business support programme, and we’re offering investment.

The GROW Fund de-risks investment in Barking and Dagenham. If resourced according to the learning outlined in our report from Year 1 of the GROW Fund, it can develop the pipeline funders are desperate to see.

The GROW Fund is a step forward for social investment and a giant leap for Barking and Dagenham. Together, we can make social investment accessible in a chronically underfunded borough.