Loans to health and social care spin-outs for investment in technology to improve service delivery.
The Technology Spin-Out Fund is a pilot fund managed by Local Partnerships. The Fund enables the growing number of public sector spin-outs to access loan finance for investment into technology solutions to improve services in health and social care and build organisational resilience.
The loans will provide technology either to help deliver and improve services or to make organisational efficiencies, for example the modernisation of back office processes to free up resources for frontline service delivery or introducing innovative ways of working with service users to improve levels of care.
Impact will vary. Investees will be required to demonstrate they have a clear theory of change in place and an effective system for measuring and demonstrating their social impact.
The £6m Fund is equally funded by Big Society Capital and the Department of Health. This enables the Technology Spin-Out Fund to on-lend to spin-out organisations, offering unsecured loans of up to £1 million at interest rate of 6-10%.
The proposal aims to develop the relatively new market of health and social care spin-outs, many of which will have limited access to finance from traditional funders. It also offers the opportunity to develop a track record for a product in a new market that could attract future investors to the space.
- Type: Loan facility, fixed rate of 4% returned over 7 years for Big Society Capital
- Fund size: £6 million
- Big Society Capital investment: £3 million
- Co-investors: Department of Health
- Manager/Arranger: Local Partnerships