Case Study: Blended Finance with Jigsaw

About Jigsaw

Jigsaw is an Australian social enterprise that provides an innovative pathway to open employment for people with disability. By embedding a comprehensive skill-based training program within their commercial document and data management business, Jigsaw enables people with disability to achieve their employment goals at their own pace. Jigsaw’s holistic approach starts from the very basics of core work skills and supports trainees all the way through to transition to open employment with ongoing support and coaching once they have transitioned. 

Raising capital through blended finance

After successfully operating hubs in Sydney and Brisbane, Jigsaw sought to raise capital to expand its ‘prepare for work, through work’ model to six national hubs. They used blended finance as a way to fund this growth. Blended finance is defined as the strategic use of development finance and philanthropic funds to mobilise private capital flows to emerging and frontier markets resulting in positive results for both investors and communities. In 2021, Jigsaw raised AUD~$3m in capital via $2.1m of debt financing and $0.9m philanthropic grant funding:

Amanda Miller, co-founder Impact Generation Partners who advised on and invested in the deal explained that 'Jigsaw’s success in securing funding for its national expansion is proof that the impact investment approach can work in a not-for-profit context when the business model and social impact is compelling, even where the financial return may be considered “below-market”.’

Outcomes

The impact investment raise enabled Jigsaw to:

• Reach capacity in Sydney and Brisbane and open new hubs in Melbourne and Adelaide

• Plan new hubs in Canberra and Perth.

• Further develop Jigsaw Connect, which transitions job ready candidates with disability into open employment

These outcomes contributed to Jigsaw fulfilling its goal at the time of creating 1000 traineeships and 600 award wage jobs for people with disability by 2023.