Abstract

“Where money and meaning intersect” is becoming the mantra for a new generation of many entrepreneurs and investors. With an estimated $6 trillion expected to be directed toward social enterprise organizations by 2052, entrepreneurs and venture philanthropists are experimenting with hybrid forms of social ventures that generate economic, social, and/or environmental benefits. The purpose of our paper is to provide a new perspective in understanding how best to segment and manage both the supply of and demand for capital by those ventures pursing such hybrid models. With a theoretical foundation (Beach, 1990) in conjunction with an economic lens focusing on how social investors screen and invest, our study makes three important contributions:

1. Identify which decision criteria are most important in both the screening and decision stages of investment choice across a spectrum of social investors seeking to maximize their social gains, financial returns, or both.

2. Identify important different decision criteria for determining the final investment choice for different types of social investors.

3. Identify segments of social investors that make investment decisions in different ways.

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