ANDE CDO Working Group Incubator/Accelerator Presentation

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BACKGROUND, APPROACH & METHODOLOGY

► Scope of Project

o I-DEV hired by the Regional Government of Cajamarca (Peru), Avina & GIZ to:

1. Conduct analysis of incubator/ accelerator models and best practices worldwide

2. Analyze feasibility of developing inclusive business incubator/accelerator in Cajamarca

3. Design and launch inclusive business incubator/accelerator

Note: Incubator/accelerator sector mapping and analysis was designed and tailored with these project objectives in mind. The following results are in no way a full comprehensive mapping of the sector, but rather a discussion of the various models, methodologies and approaches analyzed in developing the Cajamarca incubator.

► Approach & Methodology

o Secondary research - published articles, academic papers, other similar reports

o Interviews with management teams from incubators/accelerators (social and traditional)

o Attended workshops, working groups and discussions on incubators/accelerators worldwide (e.g. Halloran Foundation Incubator/Accelerator workshop at SoCap 2011)

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SOCIAL ENTERPRISE/ BOP BUSINESS NEEDS

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INCUBATOR/ACCELERATOR SERVICES

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INCUBATOR/ACCELERATOR MODELS

6

BEST PRACTICES & LESSONS LEARNED

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CAXAINCUBA OVERVIEW

► CaxaIncuba = Proposed Inclusive Business Incubator in Cajamarca Peru

► Overview

o Mission- Promote the competitivity and viability of small and growing inclusive businesses, cooperatives and small-holder associations (SGBs) in the State of Cajamarca.

o Objectives:

1. Train, empower and advise entrepreneurs, cooperatives, and associations in Cajamarca and enable them to develop and launch competitive, viable businesses with high social/ economic impact.

2. Develop and create the investment ecosystem via the Cajamarca Angel Investor Network, public investment funds and international impact investors necessary to support and launch competitive, viable SGBs.

3. Create a sustainable model for inclusive SGB incubation & acceleration that is scalable and replicable.

► Services

o Management Training & Bplan Development – 20 week strategic management course by business development experts

o Business Center/ Hub – Shared officed and administrative services

o Mentors, Peer Collaboration & Expert Advisors – In person and virtual mentors, experts in their field from around the globe, structured peer best practices programs and access to expert advisors on marketing, management strategy, export logistics & certifications

o Investment – Access to seed/ growth capital (debt, equity & donation)

• Linked to up to US$10,000,000 gov’t funded investment fund – Cajamarca Emprende

► Profitability/ Sustainability

o Avg. annual budget is = aprox. US$120,000/ year including start up costs & income

o Income sources – gov’t & NGO funding, small application fee, office rental space to 3rd parties, US$10,000 loans to incubees (paid upon raising US$80,000 in capital)

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CAXAINCUBA OVERVIEW

1. Selection2. Management

Capacity Building

3. Pitch & Evaluation

4. Incubation 5. Acceleration6. Sustainability

& Exit

1. Aplication

2. Interviews

3. Selection

1. 20 week

management

course

2. Business plan

development

3. Expert guidance

& assesment

(up to 20 entreps/

cycle, 2-3 cycles/ yr.)

1. Pitch to expert panel

2. Viable businesses

move to incubation

Financing /

Investment

Technical &

Business

1. Business plan

launch

2. Access to shared

office space &

shared services for

up to 3 years

3. Access to expert

consultants on man.

strat., certifications,

export logistics, etc.

4. Access to expert

mentors (in person

& virtual), peer

collaboration

5. HR/staffing

resources &

internship

6. Access to capital:

- Incubator’s capital

(up to US$150K)

- Angel network

- Global Impact

Investors

1. Skip step 2 – pitch

to panel

2. Access to shared

office space &

shared services for

up to 3 years

3. Access to expert

consultants on

man. strat.,

certifications,

export logistics, etc.

4. Access to network

& market linkages

market

5. Access to expert

mentors (in person

& virtual), peer

collaboration

6. HR/staffing

resources &

internship

7. Access to capital:

- Incubator’s capital

(up to US$150K)

- Angel network

- Global Impact

1. Loan repayment

to incubator &

exit.

2. May stay in

shared hub space,

but at full cost.