News

Social Stock Exchange in Lisbon

Already in December 2008, as a co-initiative of GENISIS Institute, the Social Stock Exchange Association e. V. was founded. Goal is the establishment of genuine social stock exchanges for social businesses worldwide. Anne-Kathrin Kuhlemann is CEO.
Now, in the first week of June, the first customer was welcomed: In a first step Euronext Lisbon will establish a stock exchange for donations during the summer. Clear objective is to offer investive forms of financing to social enterprises in the medium term. "This is a pilot project for the entire Euronext network. We hope to establish social stock exchanges in other countries soon", says the founder of the world's first social stock exchange (at BOVESPA in Sao Paulo) and board member of SSEA, Celso Grecco.
The idea of social stock exchanges is not entirely new. In 2003 already a concept was developed for the Brazilian stock exchange BOVESPA. Charity organizations present major projects and donors can contribute to their realization by donating a tranche of the necessary money.
The extent of transparency with regard to presenting the projects and the possibility of raising funds within the framework of a public stock exchange revolutionize the third sector.
Yet, this concept is just the beginning. Today, investors, sponsors, and donors can "do good" in equal measure by donating or lending money to, or buying shares of social businesses, foundations, or combinations of both. For most of these opportunities, however, there is still no market in place, where an overview of different ideas is given. In order to fill this gap the Social Stock Exchange Association e.V. was founded in December 2008. Goal is to develop a stock market for social businesses, also considering possibilities for donations, loans and mezzanine financing instruments. Ultimately, any form of charitable intention should get an overview of possible forms of investment to be able to choose a method appropriate to its situation to be offered to potential investors.
Through its members the association brings together the necessary skills to put into practice this ambitious project: The GENISIS Institute gives support in identifying and addressing potential social businesses to be listed. GEXSI has years of experience in the field of financing of the third and “fourth“ sector. Good Root delivers excellent know-how in the evaluation of social projects. The Humboldt-Viadrina School of Governance Project can pick up academic questions raised, while betterplace.org brings in knowledge of online marketplaces for donations and microfinance.
The socio-economic sector is an opportunity to overcome the so far often felt conflict between profit seeking and non-profit action. To have it gain significant strength in the global economy, a huge inflow of funds is needed. To address investors of any kind an increase of transparency is needed - in uniform reporting standards and simple, credible rules for admission to the listing of social marketplaces and stock exchanges.
For more information visit www.socialstockexchange.eu

---