Social Stock Exchange preparing for full Scottish launch

Published: 03 April 2017

The Social Stock Exchange, which focuses on ‘profit with a purpose’, is preparing for a full launch in Scotland. We spoke to Director Mike McCudden…

Your business in brief?

The Scottish Social Stock Exchange was established in 2016, with the support of the City of Edinburgh Council. Globally there’s a growing demand for impact investing – that’s providing financial backing for projects that deliver a positive social or environmental impact as well as a profit.

The City of Edinburgh Council were also quick to understand the benefits that impact investing could bring to both the local and national economies, so given Edinburgh’s long standing reputation as a global financial hub, setting up in the city was an obvious choice.

Mike McCudden, director, The Social Stock Exchange

 

However, retail investors can find this market difficult to access, whilst the businesses providing the impact can find it hard to access the necessary capital market. We are bridging that divide.

Given the wealth of financial services talent that is available in Edinburgh, the Social Stock Exchange envisage a significant degree of growth in the years ahead.

What makes Edinburgh / Scotland an attractive market for you?

Scotland is already home to a growing number of businesses that deliver a real social or environmental impact, whilst the country is also recognised as being a leader in fields ranging from renewable energy to social inclusion.

We’ve also had a very positive response from Scottish investors who would like to know that their money is providing a positive impact as well as delivering them a financial return.

The City of Edinburgh Council were also quick to understand the benefits that impact investing could bring to both the local and national economies, so given Edinburgh’s long standing reputation as a global financial hub, setting up in the city was an obvious choice. 

What presence will you have in the city?

The Scottish Social Stock Exchange currently employs two members of staff in Edinburgh. Given the wealth of financial services talent that is available in Edinburgh, we envisage a significant degree of growth in the years ahead. 

The Scottish Social Stock Exchange was established in 2016, with the support of the City of Edinburgh Council

What's the vision for your business?

For too long, public financial markets have been failing in their most basic objective – that of serving the needs of the public as a whole. This disconnect is driving wealth inequality, so the mission of the Social Stock Exchange is to return democracy to capital markets.

If you are a pro-social or pro-environmental business, you should have the ability to tap capital markets on the same risk-adjusted basis as any other company.

Equally, if you are an investor who recognises the wider benefits of having a portfolio that delivers a social or environmental impact, you should be able buy and sell shares in these companies in a liquid market. This is what the Social Stock Exchange will deliver.

 

If you would like to find out more about how we can help you and your business establish, relocate or expand within the city region, or would simply like more information about what Edinburgh has to offer, get in touch today.

E: invest@edinburgh.gov.uk

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Investor Support Team

City of Edinburgh Council

E: invest@edinburgh.gov.uk

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