Dreamr chief executive joins committee of new poverty fund
Mylo Kaye, the chief executive of Manchester-based app development agency Dreamr, has been selected to join the investment committee of The Fair by Design Fund, worth up to £20m.
The new fund has been launched to invest in ventures which can disrupt the energy, finance and insurance markets and provide alternative services to millions of people on low incomes hit by the poverty premium.
There will be only five independent members of the investment committee, including Kaye, all of whom have been selected for their experience and credibility in the investment/social investment world.
Some 14 million people live in poverty in the UK, almost one in five of the population. But people already struggling face a poverty premium – having to pay more for essential goods and services, such as their energy bills, for credit or their food.
On average, these extra costs add up to £490 a year and can total up to £1,190 for some households.
The Fair By Design Fund aims to eliminate the poverty premium within 10 years. Backed by the Joseph Rowntree Foundation, Big Society Capital, Ascension Ventures, and Finance Birmingham, the Fair By Design Fund will invest in companies from Seed through to Series A and beyond.
Kaye said: “It’s an honour to have been selected to join the Fair By Design Fund investment committee. I am dedicated to supporting those who are less well off and feel this is a great cause and the fund is dedicated to making a real difference and I am proud to be part of it.”
The fund has £9m to deploy and is seeking to increase this to £20m over the next 12 months.
It will invest in solutions to four key areas of the premium: Energy, finance, insurance and place-based premiums.
Campbell Robb, chief executive of the independent Joseph Rowntree Foundation, said: “Households in poverty are four times more likely to be behind with at least one household bill and are more exposed to the rising cost of living. It’s a sign of market failure, which we need to end urgently.”
Cliff Prior, chief executive of Big Society Capital, said: “It’s simply wrong that people on low incomes pay more for basic goods and services that we take for granted. It shouldn’t cost more to pay your bills as you go, it shouldn’t cost more to heat your home.”
