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Investment & Funding for Social Enterprises SUNIT 14.7.12 @ ANIS
sunit shrestha
know oneself
know the landscape
build relationship
know oneself
startup is a mindset
startup finance is not about techniques
it’s about the movement of a dragon
Chen Rong 1244
qualities of a dragon ?
flowflexibilityresilient
reaching for heaven
dragon = asian model for growth
startup financing is all about growth
seek & understand your inner dragon
image from Zurück zu Web 2.0: A Strategy Guide
J - Curve
image from Zurück zu Web 2.0: A Strategy Guide
milestone1product/service development
milestone2access to
market
milestone3profitability
milestone4scalability
milestone1impact1
product/service development
seed - round 1
milestone2impact2
access to market
startup - round 2
milestone3impact3
profitability
growth - round 3
milestone4impact4
scalability
scale-up - round 4
growth path / staircase different revenue/cost at each stagedifferent funding round
OPTIONS: abc...
scale-up
growth
startup
seed
adaptive options
milestone11 community
pilot organic fertilizerseed - round 1
projected revenue: 250kinvestment need: 300k
milestone2100 families
fertilizer factory buildingstartup - round 2
projected revenue: 2Minvestment need: 1.5M
milestone32000 families
distribution channelsgrowth - round 3
projected revenue: 10Minvestment need: 2M
sustainable agriculture company
year1
year2
year3-4
option1: organic rice
production network
milestone4xxxxxxxxx
option2: grassroots affordable
retail chain
milestone1impact1
product/service development
seed - round 1
milestone2impact2
access to market
startup - round 2
milestone3impact3
profitability
growth - round 3
milestone4impact4
scalability
scale-up - round 4
yours? ??
??
??
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RULE-OF-THUMB
try not to initially give out more than 40%you need control of direction
if you need more investment in the future,you will need to give out more.
know the landscape
NGO / Non-profit
NGO with revenue activities
Social Enterprise
Firms with strong CSR
Normalfirms
Profit onlySocial benefits only
Spectrum of social organization types
Philanthropy Venture philanthropy
Impact investment
Socially responsible investment
Normalinvestment
Profit firstSocial benefits first
Spectrum of social investment
Models and cases
Venture Philanthropy FundsImpetus
SVP Tokyo / SV-HKWTF, SEEDS
Equity fundsAcumen Fund
Avishkkaar Bamboo Finance
Loan fundsRoots Capital
Eyes FundMDLF
Crowd-funding PlatformsGlobalGiving.com Kiva.org
Hybrid Value-chain (HVC)
BIZ SE /NGOHVC
Scalability Access/innovation
• Coleramica + Kairos = Viste Tu Casa (12M USD, 28,000 families) • Mortgage + Developers + CSO = HVCs (7,500 homes/apartments; 100M USD)
Low-income Housing
• Aravind + Dutsche Bank = 15M Eyes Fund• Grameen + Danone = Yogurt for low-income
Health
• Amanco + SEs = Drip-irrigation systems (56M a year) • Grameen + Telenor = Grameen Phone (27 million subscribers)
Others
build relationship beyond the money
for more info & community social enterprise network asia (sena)www.senetwork.asia
twitter @sunitfacebook.com/sunit.shrestha
