Community Ventures Ltd
Community Ventures is focused on assisting and strengthening local communities in the East Middlesbrough areas of Thorntree and North Ormesby, both of which are in the 10% most deprived neighbourhoods in England. After setting up in 1989, their work is crucial to strengthening their community and run a number of activities including food provision, early years and youth programmes, affordable housing, employability and crisis support.
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Legal Structure
Company limited by guarantee
Funding Type
Secured loan
Funding Year
2024
How much investment did you receive?
Investment Amount
£1.85m
Loan Duration
3 Years
Cost of Capital
7.5-8%
Turnover
£650,000
“We have spoken with a number of funders as we sought to expand our housing activities, none have bought in to our vision as rapidly as Charles (Resonance Senior Investment Manager), nor moved as quickly to allow us to seize opportunities. We are used to lenders telling us they want to develop long-term relationships, but with Resonance it was more than a marketing statement, we now view Charles and his colleagues at Resonance as part of the team at Community Ventures.”
Mike Milen, CEO, Community Ventures
Challenge
Community Ventures Ltd is focused on addressing the social challenges in their local area of Middlesbrough, which has a high percentage of social rented properties and significant deprivation. It faces some of the UK’s most acute challenges around income, employment, education and health yet remains a community full of resilience and untapped potential.
The main issue they tackle is the lack of support for 10-20% of the population, who struggle to engage with traditional services due to structural barriers. Since 2020, statutory services and voluntary sector organisations have pulled out or lost funding, leaving a gap in support for these individuals.
Community Ventures aims to provide housing and support to help these individuals to find stability and access necessary services, ultimately improving their outcomes and reducing their cost to society.
The main issue they tackle is the lack of support for 10-20% of the population, who struggle to engage with traditional services due to structural barriers. Since 2020, statutory services and voluntary sector organisations have pulled out or lost funding, leaving a gap in support for these individuals.
Community Ventures aims to provide housing and support to help these individuals to find stability and access necessary services, ultimately improving their outcomes and reducing their cost to society.
Solution
Community Ventures sought social investment from Resonance (£500k) to firstly acquire a run-down shopping centre, including disused flats and within a matter of months were able to refurbish the homes and let them to individuals facing housing insecurity.
They went on to borrow a further £1.35m from Resonance to purchase and refurbish 30 housing units which were empty homes, enabling them to offer accommodation and support to individuals that need it and are excluded from other services for one reason or another.
The nature of the social investment has allowed them to react quickly to the ever-increasing demand for their community and without this funding, many would have been left without vital support.
They went on to borrow a further £1.35m from Resonance to purchase and refurbish 30 housing units which were empty homes, enabling them to offer accommodation and support to individuals that need it and are excluded from other services for one reason or another.
The nature of the social investment has allowed them to react quickly to the ever-increasing demand for their community and without this funding, many would have been left without vital support.
Revenue
The revenue model for Community Ventures is primarily based on income from property rentals, with payments – often funded through Universal Credit – covering core organisational costs and loan repayments.
They are currently exploring contracts with local authorities and progressing their desire to become a registered provider for social housing, which would further strengthen their financial position and the ability to manage loan repayments.
They are currently exploring contracts with local authorities and progressing their desire to become a registered provider for social housing, which would further strengthen their financial position and the ability to manage loan repayments.
Impact
Social investment has been transformative for the organisation, allowing it to strengthen during a critical period, critically, allowing it to scale and be seen as a key provider in the area.
The investment directly funded the purchase and refurbishment of empty homes, enabling the organisation to formalise their support offer, and respond rapidly to urgent community needs.
As a result, hundreds of people each day have access to housing and support, and the organisation has experienced significant growth in turnover and capacity.
For example, the loan has enabled…
- Up to 50 homes refurbished and tenanted
- 9 local people trained and employed through refurbishment works
- Community Asset (shopping centre) preserved and reactivated
- Up to 8 local businesses and entrepreneurs supported with flexible rents and terms
The investment also enabled greater autonomy and improved cashflow, letting them focus on community-driven solutions rather than being restricted by traditional grant funding requirements. In addition, the area has now been recognised as a Neighbourhood Trailblazer by government, and CVL are playing an active role in how that will shape local support.
Leveraging these kinds of opportunities has been made more possible through the Resonance investment which has enabled CVL to significantly scale its offer.
The investment directly funded the purchase and refurbishment of empty homes, enabling the organisation to formalise their support offer, and respond rapidly to urgent community needs.
As a result, hundreds of people each day have access to housing and support, and the organisation has experienced significant growth in turnover and capacity.
For example, the loan has enabled…
- Up to 50 homes refurbished and tenanted
- 9 local people trained and employed through refurbishment works
- Community Asset (shopping centre) preserved and reactivated
- Up to 8 local businesses and entrepreneurs supported with flexible rents and terms
The investment also enabled greater autonomy and improved cashflow, letting them focus on community-driven solutions rather than being restricted by traditional grant funding requirements. In addition, the area has now been recognised as a Neighbourhood Trailblazer by government, and CVL are playing an active role in how that will shape local support.
Leveraging these kinds of opportunities has been made more possible through the Resonance investment which has enabled CVL to significantly scale its offer.
“Working with CVL has been an incredibly positive experience. Mike and his team’s dedication and expertise gave us the confidence to invest in the opportunities they presented. Together, we’ve built a long-term relationship focused on making a meaningful difference in an area of high deprivation, where our combined efforts can truly impact people's lives.”
Charles Lewis, Senior Investment Manager