Yaron Neudorfer. Photo: Dror Sithakol

For the first time in the world: an impact investment that is open to everyone

The option for impact investment is no longer the domain of only large investors. SFI, in partnership with Fundit and the Tel Aviv Foundation, has launched an impact investment in the pay-for-success [Social Impact Bond] model aimed at reducing the loneliness of the elderly.

For the first time globally, SFI has launched a social impact bond [SIB] open to crowdfunding through the Fundit platform, in collaboration with the Tel Aviv Foundation. The goal of “New Era” is to reduce elderly loneliness in the city of Tel Aviv. The SIB is expected to affect the lives of 200 elderlies in the city with an investment period of 2.5 years, and a total investment size of 2.3 million NIS, of which 1.6 million NIS was raised before the launch of the crowdfunding.

“New Era”, which is the first impact investment of its type in Israel, will aim to reduce the loneliness of 200 elderlies in Tel Aviv Jaffa, improve their quality of life and provide them with tools to assist them in reconnecting to the community. The program includes house calls by social workers and volunteers that will assist in connecting the elderlies to the community, CBT program, integrating them into group activities in their neighborhoods, and the use of the technological component, which will make the connection accessible with quality contents, calls with family members and even other participants in the program.

Yaron Neudorfer. Photo: Dror Sithakol

Impact investments are gaining momentum and great interest among the most sophisticated investors in the world. Still, so far, these types of investments were open only to investors with very large check sizes. SFI, with the anchor investors, set to give the opportunity to experience an impact investment that provides both economic and social returns to everyone. For that, the anchor investors have agreed to compare their investment terms to the crowdfunding investment. For the first time, an impact investment in the form of a social impact bond is open to everybody.

Research conducted by SFI, funded by the Dalia and Eli Hurvitz Foundation, which aimed at quantifying the economic significance of the phenomenon, discovered that loneliness of the elderly increases 5.8 the chances of depression; 2.1 the likelihood of dementia; 3.3 the chance of prolonged hospitalization and 1.9 referrals to the family doctor.

A social impact bond is a way to promote effective and measurable programs to solve social problems. This way, the initial capital is funded by social investors.

Yaron Neudorfer, Founder and CEO of SFI says that “I am excited to enable everyone to invest in a social impact bond to reduce elderly loneliness and thus, address not only a difficult problem which has intensified recently but also, get a return on the investment subject to the project’s success. Impact investments around the globe are continuing to grow since we are witnessing a new generation of investors that want more than a return; they want their investments to be meaningful according to their values”.

Dr. Hila Oren, CEO, Tel Aviv Foundation, said that “For the past 4 decades the Tel Aviv Foundation is working to create solutions to the city’s current challenges. Covid-19 has presented new challenges and intensified other challenges – among others, the subject of elderly loneliness. As an entity that leads innovative urban thought and activity, we are happy to partner with SFI and create innovative financial tools that will contribute to the city and its residents in general and to the elderly and Holocaust survivors [which will be our primary focus] specifically. Urban challenges of the 21st century require financial solutions of the 21st century”.

Newsletter Subscription

More Articles

Newsletter Subscription

Sign up for a free newsletter and enjoy regular updates, news, alerts and everything you must not miss.

Skip to content