Funding a Social Enterprise

Ideas are free.  Concepts are beguiling and an excuse for inaction.  Improving the wellbeing of an ageing population seems to be a noble social enterprise.  People don’t want intrusive monitoring – but digital technology can help.  Kemuri has taken the first steps in providing a passive wellbeing monitoring service that will cost less than £1000 in the first year and less than £500 in subsequent years.  One year in a residential care home costs at least 10 times this amount, or more likely, 20 or 30 times.

The technology for Kemuri’s simple well-being monitor uses the Internet of Things.  It may be a buzz word, but when Google invests £2 billion on such products, it is not just hype.  Adrian McEwan’s book on the Designing the Internet of Things has helped to identify the action needed for a start up.  The chapter on a Business Model Canvas provides a nine point process for showing what must come next. The benefits are clear, the costs are containable, so how can funds be raised to deliver at scale by 2016, when the impact of the Care Bill becomes clear to the general public?

The proposition is that funding should be forthcoming if there are sufficient provisional orders.  Provisional orders would be financially risk-free for care commissioners.  If the products and services do not meet pre-determined conditions, then the order need not be fulfilled.  The financial risk is taken by the funders.  The big question is the size of the market at the price point selected.

In the UK, here are approximately 2.5 million people aged over 75 living alone in own homes, sheltered housing or care homes.  Any one of these is a potential beneficiary of passive wellbeing monitoring.  2,500 provisional orders would be just 0.1% of the potential market.  2,500 provisional orders represents a turnover of £2.5 million.   Is this attractive to Angel funders or Venture Capitalists?  Time will tell.