Target Information

Social Value Portal (SVP) is the UK's premier platform dedicated to measuring and monitoring social impact. Established in 2014 by Guy Battle, a former lead sustainability partner at Deloitte, SVP aims to attribute a financial measure to the social good delivered by organizations to communities, individuals, and the environment. SVP's innovative approach enables organizations not only to quantify their contributions but also to unearth further opportunities to enhance their positive impact.

Based in London, with an additional office in Manchester, SVP serves over 16,000 users, including public sector entities such as the NHS and the Met Office, as well as global corporations like Accenture, Vodafone, and Fujitsu. The platform is utilized by over 100 public sector buyers across the UK, supported by the Local Government Association, and has facilitated tracking of over £17 billion in social value, a substantial increase from £2 billion at the time of its Series A funding round in 2020. SVP is on track to fulfill its commitment of aiding organizations in delivering £100 billion in social value by the end of 2026.

Industry Overview in the UK

The importance of measuring non-financial impact has grown significantly in the UK as various sectors face increasing regulations and heightened scrutiny from public entities, investors, and stakeholders. The introduction of the Social Value Act in 2012 requires public sector bodies to evaluate economic, social, and environmental well-being during public tendering processes. As a result, social value can constitute up to 30% of the total score when awarding tenders, underscoring the critical need for organizations to assess and report their social contributions comprehensively.

In response to this evolving landscape, the demand for platforms like SVP is swelling. Organizations within both public and private sectors are increasingly prioritizing social impact as part of their operational and corporate responsibility frameworks. The emergence of such platforms is pivotal in aiding businesses to navigate the complexities of social impact metrics, contributing to a more informed and responsible corporate environment.

Moreover, corporate stakeholders are actively seeking ways to enhance their Environmental, Social, and Governance (ESG) credentials, reflected in growing pressure from customers and shareholders alike. As organizations overlook social impact reporting, they risk falling behind in their sustainability endeavors, thereby increasing the relevance of comprehensive social value measurement solutions.

The industry's focus on social value not only aligns with regulatory requirements but also fortifies the relationship between corporations and their communities by establishing a measure of accountability and transparency. This alignment drives innovation and fosters a commitment to long-term positive societal contributions.

Rationale Behind the Deal

Mercia's decision to lead an £8.5 million Series B funding round, with contributions from existing investors such as the ProVen VCTs, is primarily driven by the burgeoning demand for social impact measurement in both public and private sectors. The investment will facilitate the launch of a new Social Value Academy intended to educate business leaders on integrating social value into their decision-making processes and operational delivery.

This funding round represents not just a financial investment but a strategic alliance aimed at scaling SVP's capabilities and reach. As organizations increasingly prioritize social value, SVP is well-positioned to capitalize on this trend, ensuring that its methodologies and resources remain cutting-edge.

Information About the Investor

Mercia is a prominent investment firm deploying capital through its Northern Venture Capital Trusts (VCTs) and EIS funds. The firm has a strong track record of identifying and backing innovative companies like SVP that address critical market demands. Adam Watts, a software investor at Mercia, emphasized the growing expectation among corporates for transparency in their ESG credentials, noting the complexity of social impact reporting in comparison to environmental and governance metrics.

Mercia's engagement with SVP reflects its commitment to fostering unique solutions that tackle intricate challenges faced by customers in the realm of social impact. The partnership aims to leverage SVP's expertise to further refine its platform and extend its market position.

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The recent funding received by Social Value Portal marks a significant milestone in the social impact measurement sector. Given the heightened relevance of social value in both public and private sectors, this investment appears to be strategically sound. The growth trajectory witnessed since its last funding round testifies to the company's adept management and market understanding. SVP’s established presence and user base, coupled with its innovative solutions, position it favorably for further expansion.

This partnership presents a promising opportunity for both Mercia and SVP. The planned launch of the Social Value Academy will not only enhance SVP's offerings but will also address an urgent educational gap in the marketplace. As organizations strive to meet compliance and stakeholder expectations, the demand for accessible training and resources is expected to surge, potentially driving SVP's growth in the coming years.

Moreover, given the regulatory landscape that compels public sector bodies to consider social value significantly in their procurement processes, SVP is well-placed to support these organizations in delivering measurable social impact. This alignment between regulatory requirements and SVP's capabilities presents a compelling case for sustained interest and investment in the firm.

In conclusion, the investment in Social Value Portal by Mercia, alongside existing investors, is viewed as a strategic move that is poised to yield positive returns. With the increasing importance of social impact reporting, SVP's growth potential remains strong, making it a potentially lucrative investment in an evolving market.

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