A venture philanthropy fund launched this week aims to tackle poverty in London by embracing a more strategic approach to corporate giving that focuses on supporting capacity building in charities.

The London Fund will be managed by venture philanthropy organisation Impetus Trust and is supported by initial investor Deutsche Bank, who have each supplied half of its current £1.3m fund.

They hope to attract £5m over the next two years from other city firms and London-based organisations, as well increase pro bono expertise that is provided to its portfolio organisations alongside funding.

The fund will provide a combined package of unrestricted funding and professional expertise to high-potential, high-impact charities and social enterprises.

Kate Cavelle of Deutsche Bank said, "In this challenging economic environment, charities need intensive support to build capacity and core funding in order to develop and thrive.”

Three charities have been selected for initial investment. They are:

• Blue Sky Development & Regeneration, which offers employment opportunities to ex-offenders as a means of dramatically reducing re-offending rates 
• Children Our Ultimate Investment - Teens & Toddlers, which works at breaking the cycle of poverty by reducing teenage pregnancy. Teenagers are paired with toddlers in a safe nursery environment
• Street League, which uses sports as a hook to help homeless and other disadvantaged people back into employment or education

Impetus Trust chief executive Daniela Barone Soares says: “We are delighted that Deutsche Bank is supporting this initiative, and we hope this form of collaboration for greater social good will appeal to other forward-thinking organisations in the city and across London.”

For more information on the London Fund, visit the Impetus Trust website.