Through Social Impact Bonds, we provide an opportunity for entrepreneurs and investors to transform public policy and revolutionize the way the private sector, the public sector and non-profit organizations interact among each other. How do they work?
We first identify and propose the government (municipal, state or federal) a public policy intervention which can produce verifiable and measurable results. We offer a wide-array of alternatives that range from improving academic performance among primary school students or improving employability, to reducing the cost of incarceration and recidivism.
Once the intervention is agreed upon, we contract the results expected by the government, the intervention costs, a premium for successful completion, and the terms of reference for an independent evaluation. Our team has strong ties and allegiances with reputable evaluators, known for their professionalism and independence.
We then obtain financing from the private sector and carryout the intervention ourselves or in alliance with non-profits with proven expertise in the area. The programs are guaranteed funding for their entire duration, thereby reducing the uncertainty of each intervention.
Finally, when the intervention has been carried-out for the agreed timeframe, an independent evaluator is hired to verify that the established impact indicators have been met. If the intervention is successful, the government pays for the program and receives all the necessary information to scale-up the program. If the expected results are not reached, the government does not incur in any cost, and we assume the entire cost along with the investors. Basically, the government only pays for successful interventions.
This way, social impact bonds manage to switch the public policy focus from process to results. Besides, the government shares the risk and success with the private sector, who in turn find new incentives to take part in the solution to social problems