F'in Common ›

At a glance

F’in Common is a social finance cooperative that channels citizen savings and third-party funding to lend to the social and solidarity economy to create SDG-aligned social and environmental benefits. To date, F’in Common has deployed over 3.4 million in loans to 22 social economy projects.

Investor

The Foundation for Future Generations, a public benefit foundation, supports a new generation of young talents developing solutions for a sustainable future. Its Impact-First investing strategy blends philanthropic and investment tools to support initiatives addressing underfunded societal needs not met by commercial funding.

Investment overview

Amount and instruments

• Foundation for Future Generations: EUR 150,000 cornerstone guarantee (since launch in 2019, absorbs losses before cooperative shares).
• European Investment Fund’s ‘Micro and Social’ guarantee (since 2023, if applicable).
• F’in Common mutual reserve: borrower-funded (built up over time, used first in case of default).

The guarantee of the Foundation for Future Generations was the first significant financial risk buffer effectively in place.

Structure and terms

• The foundation provided the guarantee free of charge.
• Thanks to the success of F’in Common, the guarantee is being phased out: EUR 100,000 in 2025, EUR 50,000 in 2026.

Success factors of an impact first guarantee

• Risk tolerance and pre-existing trust are key enablers.
• Addressing long-term concerns: out of ideology or willingness to maximise impact, many foundations hesitate to absorb early losses if this later enables private investors to reap large profits. They fear that growth financed through traditional finance risks diluting the mission and impact. Possible solutions can be:
  • Give-back clauses: help philanthropy benefit from potential success along the way.
  • Mission-lock structures (e.g. legally enshrined purpose, steward ownership, benefit corporations, cooperatives): safeguard long-term mission integrity, well beyond the foundation’s initial impact-first investment.

Catalytic role

At its inception in late 2018, F’in Common faced a classic chicken-and-egg problem: no track record, no diversified portfolio, no funder confidence. The Foundation’s 150,000 free-of-charge guarantee broke this stalemate from day one. This served as a cornerstone of a multi-layered risk mitigation strategy, enabling F’in Common to build credibility and unlock growth. It de-risked and leveraged mission-aligned capital (citizen shares, partner loans) and facilitated partnerships with co-lenders.

In addition, the Foundation provided nonfinancial support to F’in Common. They joined the pre-launch steering committee and became a co-operator and board member, sharing expertise and helping to build further trust.

Summary