Simon Borkin (Community Shares Unit) Presentation

January 8, 2018 | Author: Anonymous | Category: Business, Management, Sales
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Introducing Community Shares

Community shares in pictures

The Importance of Equity: The Limitations of Debt



Debt is mechanistic Controlling and disengaged Seeks security

Equity is patient and engaged


Risk sharing

What are community shares?

“The sale of shares in enterprises serving a community purpose, with the aim of raising at least £10,000 in capital from no fewer than 20 members”

Powered by Withdrawable Share Capital Unique to cooperative and community benefit societies

Nontransferable, nominal

One Member One Vote

Exempt from regulation under the FSMA 2000

Interest payment only sufficient to attract investment

“Community shares can give members meaningful involvement in the running of the society”


“Community share offers can lever further funding based on the ‘first move’ of the community”


“Community shares offers can provide long-term risk capital linked to the performance of the society”



The benefits of community shares

Community share offers can ‘bake in’ the customer base and promote member involvement in the operation of the enterprise”

Community shares market indicators: 2009 - 2014

Nearly 500 new societies registered

Almost 200 share offers undertaken

Est. £35m raised from over 35,000 members

Average offer raised £175,000

Average membership 175 members

Creative and media Sports 1% 3%

Average investment per member £750

Food and Farming 8%

Pubs and Brewing 15%

Regeneration and development 7%

Energy and Environment 33% Community Retail 24% Social Care 2%

Transport 2%

CLT and Housing 3%

Other 2%

Case study: TreeStation, Manchester

Initially a private tree-work enterprise based in Manchester, converted to a Ben Com in 2011 having recognised the community emphasis of the venture Needed significant capital injection to invest in plant and machinery to secure and deliver woodland management contracts In 2012 it raised over £140,000 from over 100 members through a community share offer

Share offer supported through an underwriting fund, and levered in further grant funding to provide a stable capital base

Key pillars of a successful share offer

Business model

Community engagement


Offer document


Scale and scope

Legal form



Attracting support




Building membership


Share offer ‘campaign’

What is the Community Shares Unit?

DCLG-funded programme launched in 2012 and running to March 2015

Partnership between Cooperatives UK and Locality

Objective to grow the market for community shares, supporting: • Communities looking to develop share offers • Supporters exploring the community shares market • Intermediaries, practitioners and advisers involved in comshares

With growth comes ‘responsibility’ - the work of the CSU CSU is working to develop the tools and structures that will support greater responsibility over quality for Market community share offers intelligence

CSU compliance mark / Microgenius

Community Shares Handbook

Best practice share offers

Advice and Support

Practitioner training and accreditation

Market Intelligence

Regularly updated directory of registrations, share offers and annual returns

Searchable and exportable data

Forms the basis for more in-depth research into the development of community shares market

Community Shares Handbook

Consolidation of all advice materials to form Community Shares Handbook

Oversight from a technical committee of government representatives and FCA

Collaboratively developed with practitioners through an online platform

Regularly updated and monitored to ensure relevancy and accuracy

Introducing Microgenius

Technological tool for both enterprises and supporters

Secure payment facility

Shareholder register

Social media and online presence

Visible portal for all compliant share offers

CSU and market development

By sector: exploring the use of community shares in new and emerging markets such as heritage, housing, media and transport

By geography: developing a ‘hub and spoke’ model for a UK-wide CSU which works alongside the devolved nations

By audience: engaging new and promising audiences such as local authorities, CDFIs and charities

Get in touch [email protected]

View more...


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