Raising appropriate financing that balances impact and financial return remains a challenge in Central Eastern Europe (CEE). Currently, only 2 per cent of venture philanthropy investments are allocated in CEE, while 67 per cent go to Western Europe. Social entrepreneurs face difficulties in accessing early stage capital that does not demand high financial returns.
There is a need to build a different message around the region to fill in this gap in funding. With this in mind, the European Venture Philanthropy Association (EVPA) launched the CEE Fund Support Initiative to facilitate the development of venture philanthropy/social investment funds in the region. The purpose is to increase resources, attract new investors in the region, and mobilize local capital to grow the market.
The first fund developed with EVPA expertise is in Bosnia & Herzegovina, where Mozaik Foundation raised US$750,000 from local players and received a matching amount of US$250,000 through the programme.
EVPA will support the development of at least three more funds until the end of 2018. The matching amount that it is offered through the programme is up to US$1 million.