Financing Mechanisms in Social Entrepreneurship

UMassAmherstIsenbergSchoolofManagement

BerthiaumeCenterforEntrepreneurshipSocialEntrepreneurshipDay

November17th 2015AndrewBellak,CEO

Disclaimer

Thisisnotanoffertobuyorsellsecuritiesnorisitspecificinvestmentadvice.Pastperformance

isnoguaranteeoffutureresults.

TableofContents•AboutStakeholdersCapital•Opportunities&challenges•SocialEntrepreneurshipResources-Internationalnational,regional,local

StakeholdersCapitalisawealthmanagementfirmspecializinginsociallyresponsible,impactandsustainableinvesting.

AboutStakeholdersCapitalcontinued•Wedofinancialplanningofwhichinvestingisakeycomponent•Thefirmisanindependentregisteredinvestmentadvisor– RIA•Amherst,MAandSantaMonica,CA

AndrewBellak•Two-timeentrepreneur•First-timesocialentrepreneur– mystory•InvestmentAdvisor– series65registration

Opportunities&ChallengesForSocialEntrepreneurs

Challenges•Accesstocapital-PioneerValleylowdensity•Investormisperceptions-philanthropy/sacrificeperformance/maximizeshareholdervalue•Impatientcapital•Overwhelming/romanticizedidealfromentrepreneur•Jackofalltrades(masterofnone)

Opportunities•Increasingawareness,interest,andresources•Businessschoolconcentrations•NetImpact•Incubators/Accelerators/Mentoring/Networks/Events/Conferences(YaleSOM,BSAS,Sustainatopia)

Opportunitiescontinued

“The2015SchwabFoundation SocialEntrepreneursoftheYearrepresents31outstandingsocialentrepreneursfrom25organizationsoperatinginmorethan45countriesthatarepioneering solutionsforsocialandenvironmentalchallenges, frommentalhealthtonutrition, homelessness toclimatechangeandmore.” (World EconomicForumwidgets.weforum.org/social-entrepreneurs-2015/)

OpportunitiescontinuedTopMBAProgramsbySpecialty:Sustainability*1.Michigan(Ross)2.Cornell(Johnson)3.UCBerkeley(Haas)4.Yale5.Erasmus(Rotterdam)6.MIT(Sloan)7.NorthCarolina(Kenan-Flagler)8.NotreDame(Mendoza)9.CarnegieMellon(Tepper)10.GeorgeWashington(2013Bloomberghttp://www.bloomberg.com/bw/articles/2013-01-22/mba-rankings-top-schools-for-sustainability)

“Sustainabilitynowkeysellingpointforbusinessschoolsattractingstudents...

...Afteryearsofneglect,studentsarenowdemandingbusinesscoursesincludesustainabilityonthesyllabus.”

-GuardianSustainableBusiness,February2015(http://www.theguardian.com/sustainable-business/2015/feb/09/are-business-schools-taking-sustainability-seriously)

Sympathetic/EmpatheticOrganizations–

InternationaltoLocal

Ashoka

• “Ashoka is the largest network of social entrepreneurs worldwide, with nearly 3,000 Ashoka Fellows in 70 countries putting their system changing ideas into practice on a global scale.”

Venturewell(NCIIA)

“... a non-profit higher education network on a mission to help an emerging generation of young scientists launch ventures that improve life for people and the planet..”

toniic

• InternationalImpactInvestorNetwork

SocialVentureNetwork(SVN)

“SVN is a community of the world’s leading social entrepreneurs working together to create transformational innovation, growth and impact.”

InvestorsCircleVentureCapitalOrganization

• National(US)• RegionalChapters

GoldenSeeds

• Earlystageinvestmentfirmfocusedonwomenleaders

NationalMinorityAngelNetwork

• Focusedondeliveringeducationalworkshops,classesandseminarstoentrepreneurs

UnreasonableInstitute

• Int'learlystagementoringandacceleratorfocusedonsocialimpact

SoCAP– SocialCapital

• USandInt'l• Premierconferences

HUBImpact

• USandInt'linmediumtolargecities• Incubator/accelerator/sharedofficespace

GreenAmerica

• US• Green– CSR/SRI,socialbusinessassociation

BALLE– BusinessAllianceforLocalLivingEconomies

• US,chapters• Green– CSR/SRI,socialchamberofcommerce

BALLE– PioneerValleyLocalFirst

• PioneerValleychapter• Green– CSR/SRI,socialchamberofcommerce

SlowMoney

• National(US)• RegionalChapters• Connectingcapitalandsustainablefoodorganizations

PioneerValleyGrows

• PioneerValleyloanfund• Sustainablefoodsystems• PVSlowMoneyChapter,closerelationship

ValleyVentureMentors– VVM

• Entrepreneurshipmentoringandacceleratorprograms

• SpringfieldMAlocale

TechSpring

• HealthTechnologyInnovationCenter• Sharedofficespace• AffiliatedwithBaystateHealthSystem

RiverValleyInvestors

• PioneerValleyAngelInvestorNetwork

CircleUp

• Venturecapitalgroup(laterstage)• ManyBCorps• USAprimarily

CommonCapitalCDFILoanFund

• Loanstolocalentities• For-profit,coops,non-profits• FormerlyknownasW.MAEnterpriseFund• WesternMAonly

CooperativeFundofNewEnglandCDFILoanFund

• Loanstoregionalentities• For-profit,coops,non-profits• Democraticallyoperatedfirms• NewEnglandonly

TheEquityTrustLoanFund

• Loanstointernationalgroups• For-profit,coops,non-profits,farmers• International– local,regional,national,developingcountries

RiverValleyMarketCoop

• Memberloanstocoop• Differentratesanddurations• Northampton,MA

RealPicklesworkerownedcoop- DPO

• Directpublicoffering• Non-votingpreferredstock• Greenfield,MA

ArtisanBeverageCooperativeworkerownedcoop- DPO

• Directpublicoffering• Non-votingpreferredstock• Greenfield,MA

EqualExchangeCoop

• Non-votingprivatepreferredstock• CD• Fairtradecoffee,chocolate,tea,bananas• Brockton,MA

ProsperityCandle

• Royaltyrevenueshareinprivatecompany• Fairtrade,fairlabor• Womeninareasofdistress

– Iraq– Haiti– Bhutan&BurmeserefugeesW.MA

• Primarilycandles• Easthampton,MA

SocialEntrepreneursInspireMe

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Thankyou