Private Social Investors
The majority of Mydex CIC funding has come from such individuals. Some are founders, others individuals seeking to invest in platforms that empower individuals and help deliver social return on investment aligned to their own areas of interest. Mydex CIC welcomes such individuals. They bring with them networks of highly relevant organisations, personal insight and expertise, and they have investment profiles that look for a sustainable income as opposed to a classic exit.
Foundations / Trusts
Mydex CIC is an asset-locked social enterprise with legal commitment to a social purpose. In many cases it can demonstrate a strong alignment with a foundation or trust’s own objectives, and it can significantly enhance existing programmes. It does this by
- accelerating core aims
- providing an enduring revenue stream
- offering a higher return on investment compared to simply making a grant
- brand enhancement
Mydex CIC is suited to grant, loan and equity investments.
Entrepreneur / VC
The asset-locked nature of a social-enterprise CIC begs the question: why would a VC invest? The answer is because it’s in their best interests. Mydex CIC has created a trusted platform and a trust framework for innovation which can create wealth.
The VC that helps create a new open platform that enables new value flows, business models, service propositions and revenue streams is able to offer existing and future investments in wholly commercial opportunities. These have richer, deeper and larger return on investment potential once many of the risks and costs associated with personal data management and access to these rich data sets are satisfactorily addressed. Mydex makes it simpler for innovators and entrepreneurs to focus on core value-adding services which depend on fully permissioned “volunteered personal information”.
Given that Mydex is a Community Interest Company (CIC), trade sale to a business that is not similarly asset locked is not an option. It is possible however for Mydex to be sold to a charity or foundation, or floated on a future listed market for CICs.
Dividends from Mydex are regulated in accordance with the regulations available on the CIC Regulator’s web site . These are designed to ensure such organisations are sustainable over the long term, with reinvestment of a significant proportion of profits in their core social purpose.
As well as the broader CIC regulations Mydex has a shareholder agreement which binds all existing and any new shareholders. This document sets out in clear terms the mission of the organisation, how shareholders delegate responsibility to the Mydex board, make decisions that may be required from time to time and decide how shares may be sold and transferred.
If you are interested in finding out more about Mydex CIC as a potential investment opportunity, please complete our contact form here.