IDEMS International is coming to the end of it’s 4th year. With minimal external investment we have sustained on average around 60% growth while investing back into social projects we believe in. We start our fifth year with our first substantial multi-year contract about to be signed and conservative projections indicating we are will at least sustain our current growth rate. We recognise that at this point continued growth would substantially benefit from external investment to support our cash flow, enabling us to reinvest more towards further opportunities particularly by increasing our human capital.
The recent Adebowala commission on social investment has reinforced our belief that our, and other social enterprise, needs are not currently best served by established structures and there is potential value for us to explore more innovative financial arrangements on a small scale with willing investors. We hope that this will both serve us as an organisation and potentially provide a precedence for others to follow.
Our intention is to issue a limited numbers of bonds based on fixed criteria that would support our cash flow while we continue to grow profitably. We aim to minimise the risk of investing in the following ways:
- we will cap the bonds based on a percentage of company turnover. Initially this is thought to be approximately four months of cash flow i.e. one third of annual turnover.
- the maximum number of company bonds would only increase at a time when IDEMS is growing.
We are intending to wait until our multi-year contract is signed before we finalise the terms and conditions of the bonds. However we would welcome enquiries from potential investors. We would potentially issue up to £100,000 based on our 2020 accounts, increasing to up to £200,000 when our 2021 accounts are finalised.
We would also consider issuing riskier investments opportunities related to individual projects with variable terms of investment based on specific indicators. Specifically we would potentially consider investment in R-Instat to seize the opportunities provided by the recent review.
We are eligible to apply for Social Investment Tax Relief if we have at least four investors who would be interested in this each holding less than 30%. Contact us if this is something that may be of interest as we believe we need to have preidentified four such investors to apply.
We have put thought into creating this investment opportunity which we hope will be attractive to investors looking for ethical and socially impactful opportunities.
We are new to sourcing investment having built IDEMS from scratch with no external investors, so would also welcome being contacted with constructive feedback or advice.