Social impact bonds (SIBs) are what are known to be a subset of social finance using smart social capital to
pursue societal benefits through the network of various education stakeholders (Kim & Kang, 2012). SIBs are used
to inject private funds into public-sector programs, and private investors would bear risk for large-scale high-budget
education projects (Kim & Kang, 2012). If successful, “social investors” are repaid with a greater return by the
government, thus making the education funding transaction a “performance-based” education-funding project (Kim
& Kang, 2012).