Nesta

Nesta is a prominent innovation foundation based in London, United Kingdom, dedicated to designing, testing, and scaling new solutions for some of society's most pressing challenges. As a charitable organization, its core mission revolves around fostering innovation for public good, focusing on areas such as a fairer start, a healthy life, and a sustainable future. Unlike traditional venture capital firms, Nesta primarily operates through a unique blend of research, policy advocacy, and direct funding mechanisms aimed at driving systemic change rather than generating financial returns for investors.

The foundation's approach involves identifying critical societal problems and then developing and testing innovative interventions. These interventions often take the form of challenge prizes and grants, which are designed to incentivize and support organizations, researchers, and innovators working on specific solutions. For instance, Nesta has offered grants of up to £100,000 for projects focused on areas like data for public good or supporting young people's readiness for the future. They also manage significant prize funds, such as the Longitude Prize on Dementia, which allocates a £4 million prize fund to accelerate breakthroughs in dementia care.

While Nesta previously operated Nesta Impact Investments, an arm that made equity investments into social enterprises, its current strategic focus and primary funding mechanisms are centered on non-equity grants and challenge prizes. Consequently, the concept of typical "first cheque sizes" for equity investments, as understood in the venture capital landscape, does not directly apply to Nesta's current core activities. Their funding is strategically deployed to catalyze innovation and scale proven solutions, rather than to take equity stakes in commercial ventures. This model underscores their commitment to driving social impact through philanthropic and programmatic funding.