Helping ‘regen-preneurs’ take root and grow ↓

On a mission to see a world where regenerative enterprises are the new normal for business, Regen Labs is changing the game. The enterprise develops and runs immersive programs in regional communities that seek to regenerate their social, ecological and economic ecosystems through local enterprises.

Working with enterprises on both a 1:1 and cohort basis, Regen Labs provides direct support to build capability and catalyse the change they want to see. Like working with an energy collective to evaluate a pilot initiative and map the possible pathways for regeneration and greater impact.

Regen Labs is building on ‘Innovate to Regenerate’ – a WWF (Worldwide Fund for Nature) program that for 3 years nurtured entrepreneurs in regions that were hardest-hit by the 2020 bushfires. When the program ended, Regen Labs was established to continue the work in regional Australia, where early-stage regenerative entrepreneurs (‘regen-preneurs’) need a hand to access capital to launch and grow.

“Entrepreneurs grounded in their regional communities can get a small grant here and there. But if they want to continue to grow their enterprise, it’s harder to get grants once they’re established. And accessing other capital sources is harder in regional areas,” says co-founder Phil Freeman.

Regen Labs aims to bridge this gap by acting as a translator, connector and aggregator between regen-preneurs and potential funders.

But it’s philanthropy with a twist. Motivated by the rise of investments in positive social and environmental change, Regen Labs advocates for more catalytic finance – the space between traditional impact investing and philanthropy – as an ‘unlock’ to help regenerative, community-based enterprises succeed on their journey.

Place-based capital and capability ↓

Catalytic finance is an emerging sector in Australia, so Regen Labs is using global research to apply insights locally. And these insights are inspiring a new, unique offering: place-based, community-centric capital and capability support. This approach focuses on gathering funders and investors to invest together in specific regions to create sustained cycles of social, environmental and economic development.

“Right now we’re exploring the right structures to enable catalytic investors to connect with regenerative enterprises that have so much potential. Our working title? Regen Community Investment Fund” Phil shares.

To do this requires focused research and innovation. This is critical to ensure that capital and capability support is truly fit-for-purpose. But such research and innovation itself usually requires philanthropic funding, especially during early stages. And whilst Regen Labs has a clear impact mission, it was established as a social enterprise Pty Ltd, rather than a charity - which makes it difficult for the enterprise to access philanthropic funding.

So, the enterprise co-founders reached out to Sefa Partnerships for support.

Enabling Regen Labs to focus on impact ↓

Sefa Partnerships’ experience working with the finance sector to fund social impact initiatives made us a natural fit for Regen Labs.

“Sefa Partnerships supported us through an auspicing arrangement, which helped us stay focused on our impact mission, without getting weighed down too early by administration or governance,” says Phil.

He’s referring to the time-consuming process of establishing a charity entity and obtaining DGR status, which they’ve been able to delay because of Sefa Partnerships’ auspicing arrangement. This has also reduced the risk of Regen Labs being ‘locked in’ to a complex structure that doesn’t fit their evolving needs.

At the same time, Sefa Partnership’s in-depth due diligence (on Regen Labs) prior to auspicing helped Regen Labs to articulate it’s role and business model, whilst also giving stakeholders (including funders) peace of mind.

Phil says that overall the auspicing arrangement freed Regen Labs to focus on its impact work rather than getting sidetracked or overly invested in setting up a charity too soon.

“We’re excited to collaborate with Sefa Partnerships more broadly. For example, our recent innovation exploration session with Sefa Partnerships prompted us to test our thinking on our role and priorities, and learn from their insights,” Phil adds. “Knowing what’s already out there has helped reduce duplication in the market and given us more clarity.”

With new clarity on their role, Regen Labs is ready to grow networks and capability in regional areas, including the Adelaide Hills, Fleurieu Peninsula, Gippsland, Southern Highlands and the Northern Rivers of NSW. They are also developing a Regen Community Investment Fund, to help investors connect with regenerative enterprises. Important steps towards their vision of a nationwide transition to a community-serving, regenerative economy.