Reference no: EM133615867
Problem
Organization Summary
Launched in 2013, Social tix is a social enterprise ticketing platform. The idea is simple: donate all profits to a partner charity chosen by the event organiser. There are no strings attached:
Social tix partners with some of the most impressive charities in Australia, with a focus on relieving poverty, health and education.
Social tix provides event organisers with the opportunity to give a meaningful donation to a great cause at no extra cost. For every event, they guarantee at least 20% of total fees are donated to the nominated charity. The process is simple and transparent.
The Issue
Social tix has experienced strong growth, ticketing for over 2,000 events in its first 2 years of operation. This has attracted partnerships and support from some of Australia's biggest tech companies and the potential for scalable financial and impact growth is material.
To this end, Social tix has been offered impact investment funds, but they are currently incorporated as a charity and therefore unable to accept investment or pay a dividend to investors. The co-founders recognise that a larger capital base would allow them to scale the business and deliver more social impact, but they also recognise the risks of doing so, both actual and reputational.
Task
Identify specific changes or considerations to become investment ready. Explore the pros and cons of making these changes. How they might measure and report on impact.