Excerpted from Market Watch.
Social Finance is a nonprofit organization that develops funding strategies to improve lives. The organization has pioneered the Career Impact Bond, which brings together student-friendly income-share agreements and wraparound supports to help individuals upskill or reskill.
Through the UP Fund, Social Finance seeks to raise $40 million to $50 million to fund eight to 12 Career Impact Bonds. Currently, there are more than 1,000 students enrolled in Social Finance’s four active Career Impact Bonds. With this model, investors provide capital to cover upfront training and support services for students who typically face barriers to access such as limited income and credit, immigration status, or involvement with the criminal justice system.