Embed Size (px)
Citation preview
With the financial support of the European Union
1 With the financial support of the European Union
EU Webinar Series | #8
EU Funding Update for VP/SI Practitioners
EFSI Social Impact
23 November 2016
With the financial support of the European Union
2
Simon Ott Policy Analyst
EVPA
Welcome
Elinor de Pret Head of Policy EVPA
With the financial support of the European Union
3
GoToWebinar | Tips & Tricks (1/2)
GETTING STARTED You are able to Open and Hide your Control Panel
The control panel will collapse automatically when not in use. To keep it open you can click the “View” menu and uncheck “Auto-hide Control Panel”.
To Join Audio
Choose “Mic & Speakers” to use the VoIP. If you choose “Telephone”, use the PIN code
received upon registration [369-787-141].
If you have technical issues accessing the Webinar please call Bogdan Selaru in the EVPA Brussels office [+32 (0)2 513 21 31].
With the financial support of the European Union
4
Q&A TIME Participants will be kept muted.
But you are invited to ask questions in
written form to our panellists. Those will be directed to them and answered during the Q&A time.
If you have a technical issue while connected
to the Webinar please submit a text question or comment to the organisers using the Questions panel.
This session is recorded.
GoToWebinar | Tips & Tricks (2/2)
With the financial support of the European Union
5
Involvement of EVPA “Expert” Members
Involvement of “Policy Experts”
EVPA Policy Committee (as Advisory & Validating Body)
EU Webinar Series
Policy @ EVPA
European Thought Leader National Policy “Nexus”
With the financial support of the European Union
6
EU Webinar Series
#1 | 25.06.2014 | EuSEF Regulation
#2 | 25.09.2014 | Impact Measurement
#3 | 05.03.2015 | SIBs
#4 | 17.06.2015 | EU Funding for VP/SI
#5 | 23.09.2015 | EU Public Procurement
#6 | 16.03.2016 | Crowdfunding
#7 | 21.06.2016 | Retail Social Investment
#8 | 23.11.2016 | EU Funding Update
Wide Reach*: 903 registrations
429 “live” participants
+ 879 online views
* on 22/11/2016
With the financial support of the European Union
7
EU Funding Update for VP/SI Practitioners EFSI Social Impact
Welcome to Today’s Webinar!
With the financial support of the European Union
8
Welcome to Our e-Speakers!
Shadin Viratham COM (DG EMPL / E1)
Silvia Manca EIF
Georgia Efremova COM (DG ECFIN / L2)
Yvette Go EIF
With the financial support of the European Union
9
1. Overview of EU’s policies & funding instruments in
support of social enterprises Shadin Viratham
2. An Introduction to the European Investment Plan, EFSI and its Equity Instruments for Social Impact
Georgia Efremova
Andon Kalibatsev (Q&A)
3. EFSI Equity Instruments for Social Impact: how do
they work in practice?
Silvia Manca
Yvette Go
4. Panel Discussion & Interactive Q&A Session
(moderated by Elinor de Pret)
Programme
With the financial support of the European Union
10
Shadin Viratham Programme Manager, EaSI Financial Instruments and EFSI
European Commission (DG EMPL / E1)
1. Overview of EU Policies & Funding
EFSI Equity for Social Impact
EU funding for social enterprises
Shadin Viratham Pulsawatdi DG EMPL.E1 Job Creation
EVPA Webinar Series, November 23, 2016
Social enterprises share 3 common dimensions
Governance
Limits on distribution of profits
Social
Social as primary objective
Entrepreneurial
Continuous economic activity
Social Business Initiative: a clear commitment to stimulate the creation, development and growth of social enterprises
• Mapping study
• OECD
• Mainstreaming in the EU programmes
Visibility and recognition
• EaSI programme
• European Structural & Investment Funds (ESF, ERDF)
• European Social Entrepreneurship Funds (EuSEF) Regulation
Access to finance
• Public procurement
Regulatory
environment
Social enterprise finance: why is EU support needed?
• There is a mismatch between demand and supply
• Available investments do not suit the needs of social enterprises
Dual objective under the EU programme for Employment and Social Innovation (EaSI)
1
2
Facilitate access to finance for social enterprises
Support the development of the social investment market
EU funding: offering the right product mix to boost support for social enterprises under EaSI
Guarantees
Financial
instruments
Equity under EFSI SMEW
Capacity-building Intermediaries
Investments
up to EUR
500k
Loans
Other products
Grants Actions to boost the supply and demand sides of the market
Social
enterprises
With the financial support of the European Union
17
2. EU Investment Plan & EFSI
Georgia Efremova Policy Officer, Financial instruments - Social Impact Investment
European Commission (DG ECFIN / L2)
EFSI Equity for Social Impact
Investment Plan for Europe
Georgia EFREMOVA DG ECFIN, Financing for Innovation, Competitiveness and Employment
EVPA Webinar Series, November 23, 2016
The Investment Plan for Europe
EFSI: a bold new approach to public spending
Leveraging private investment for increased efficiency
Catalytic role to unlock and attract more funding that is better suited to social enterprises
First pillar of the Investment Plan for Europe
Investment Plan for Europe
Launched in 2015 with the goal of helping European MS to overcome the current investment gaps
Consistency with EU policies for smart, sustainable and inclusive growth, quality job creation
Additionality of investments: risky projects in strategic sectors with high externalities
Looking forward: working with all three pillars of the Investment Plan to tap the potential of IPE for delivering social impact
EFSI guarantee fund: € 16 billion EU budget
guarantee, € 5 billion of EIB resources
Strategic investments in infrastructure as
well as risk finance for small businesses
Infrastructure & Innovation and SME
Windows
1. MOBILISING FINANCE FOR INVESTMENT
European Investment Project Portal
(EIPP)- greater visibility of investment
opportunities
European Investment Advisory Hub
(EIAH)- Europe's gateway to investment
support
2. MAKING FINANCE REACH THE REAL ECONOMY
Facilitating the deployment and usage of equity
type products
Alleviating regulatory hurdles faced by private
funders and enterprises themselves
3. IMPROVED INVESTMENT ENVIRONMENT
The EFSI Opportunity
Both IIW and SMEW make specific reference to social infrastructure and social enterprises.
Excellent performance of EFSI SMEW, with a mix of facilities covering:
both debt and equity financing
finance to SMEs and small mid-caps in the EU in early, as well as expansion stages of their life-cycle
specifically the needs of higher-risk, innovative/ research-intensive companies, start-ups and high-growth SMEs, social enterprises, internationalisation of SMEs.
More volumes and faster outreach of existing facilities (Cosme, Innovfin, EaSI)
EFSI Equity product targeting previously unaddressed needs, including social impact
EFSI SMEW Social Instruments
•EaSI Capped Guarantee
(launched 2015)
• Future EaSI products (to be
developed H1 2017)
Enhancing EaSI
instruments
• Social Incubators/Accelerators
• Social Business Angels
• Social Impact Pilot Product
(launched October 2016)
Social Impact Window
under EFSI Equity Product
Boosting the volumes and outreach of the
EaSI products for micro- and social entrepreneurship:
ensuring high leverage effect.
Piloting innovative equity instruments to
ensure the right product mix for social
entrepreneurship and innovation: strong focus
on the early- stage funding segment
EFSI Equity Social Impact Window
Social Incubators/ Accelerators
Social Business Angels
Payment-by-results/
SIB schemes
EFSI Equity Product: Social Impact Window
An incubation facility to support the investment readiness of early (pre-commercial) stage social enterprises in need of small investment tickets
A pan-European co-investment facility targeting social enterprises at seed and early stage.
An innovative financing mechanism to support the development of social impact market in Europe and scale- up social service provision.
Min Eur 30 m
Min Eur 25m
Min Eur 25 m
With the financial support of the European Union
24
3. EFSI Social Impact in Practice
Silvia Manca Manager, Social Impact Programmes - Institutional Business Dvpt
EIF
Yvette Go Head of Social & Environmental Impact Investments EIF
Social impact under EFSI
New tools for impact investing
EVPA – Webinar
Silvia Manca & Yvette Go
23 November 2016
2
Disclaimer
This document is for information purposes only and is intended to provide an outline of the main terms for the products described therein, which are indicative, non-exhaustive and subject to change
This document does not constitute a recommendation, a solicitation, an offer or a binding commitment – either implicit or explicit – on the part of the EIF
This document and any information contained therein may not be circulated and/or reproduced in part or in full without the prior written consent of EIF
EIF’s potential products overview targeting
micro/social enterprises (*)
EFSI EaSI
EIB Group
Social Impact Accelerator EUR 243m
[Capacity Building
Investments] Under development
Payment by Results On-going
[Funded Product] (loans)
Under development
[Additional Product]
Capped Guarantee
[Additional EFSI
resources]
Intermediaries linked to
incubators/ accelerators +
Business Angels On-going
3
On-going
*indicative list, some products are still under development
Social Impact Accelerator
Social Impact
Venture
Capital Fund
Social
SME
Social
SME
Social
SME
Social
SME
Social
SME
Investment Targets
Final
beneficiaries
Crédit Coopératif
Fund-of-funds
Investors
SITRA
Bulgarian
Development
Bank
Social Impact
Venture
Capital Fund
Social Impact
Venture
Capital Fund
Across the EU, Candidate
Countries and Potential
Candidate Countries
Public-Private Partnership
EUR 243m Investment Capacity
SIA – Structure
Social Impact
EIB/EIF
Deutsche
Bank
4
5
Europe’s leading social impact fund
investor
Since 2014:
9 social impact fund investments
EUR 95m committed
New tools for impact investing
EFSI Equity Instrument
6
New tools for impact investing
Investments in/alongside
intermediaries linked to
incubators/accelerators
targeting social enterprises
Investments in business
angels funds or co-
investments alongside
business angels targeting
social enterprises
Payment by Results
investment schemes
targeting social sector
organizations at large
SME Development Stages
DEVELOPMENT
HIGHER RISK LOWER RISK
Public Stock Markets
Incubator/Accelerator-linked funds
Technology Transfer
Microcredit
VC Early Stage
Portfolio Guarantees & Credit Enhancement
VC Lower Mid-market & Mezzanine Funds
PRE-SEED PHASE SEED PHASE START-UP PHASE EMERGING GROWTH
Social Impact Funds
Business Angels
Payment-by-Results investment schemes
Social Impact focused tools
Complementing EIF’s financing spectrum
EFSI Investment Criteria(*)
Independent
Management team
EIF ranks (at least)
pari passu
Max commitment:
€ 50m
7.5% ≤ ticket size ≤
50% (typically)
2X – 2/3 rule
Eligible beneficiaries:
SMEs, Small mid-caps,
SocEnt
15 years +3
(*) non-exhaustive list 8
Investment in/alongside Financial
Intermediaries linked to incubators/
accelerators
9
EIF as (co-)investor Private/Institutional Investors
Financial Intermediary
(Typically venture capital funds)
Portfolio of Social Enterprises (and other eligible beneficiaries) established or operating within the EU ranging from pre commercial stage up to early growth
Incubators/
Accelerators
Min: 7.5%
Max: typically up to 50%
Max: EUR 50m
Equity/Preferred Equity/
Hybrid Debt-Equity/
Other mezzanine financing
Services
Co-investment with Business Angels
10
EIF as (co-)investorBusiness Angels/
Business Angels Funds
Co-investment vehicle/agreement with Business Angels
Portfolio of Social Enterprises (and other eligible beneficiaries)
established or operating within the EU ranging from early stage to growth stage
Min: 7.5%
Max: typically up to 50%
Max: EUR 50m
Equity/Preferred Equity/
Hybrid Debt-Equity/
Other mezzanine financing
Payment-by-Results
11
EIF as (co-)investorPrivate/ Institutional Investors/
PbR Manager
Financial Intermediary
(Typically through special purpose vehicles)
Social Enterprises/Social Sector Organisations
established or operating within the EU
Min: 7.5%
Max: typically up to 50%
Max: EUR 50m
Equity/Preferred Equity/
Hybrid Debt-Equity/
Other mezzanine financing/
Debt
Impact measurement
12
1
SOCIAL
OBJECTIVE
STAKEHOLDER
ANALYSIS
IMPACT
2
3
4
5
6
7
8
elaboration of change theory
identification of social issue
definition of stakeholder-specific
metrics
analysis of stakeholder
expectations
stakeholder selection
stakeholder mapping
definition of stakeholder-specific
objectives
measurement/reporting of social
impact performance
12
Intermediary’s financial
reward is linked to the
achievement of social
impact across the
portfolio
2-3 Impact KPI’s per
investee (except for
PbRs, where impact-
reward link is captured
in the tool’s structure)
What do we look for?
13
Team or BA
Investment
Strategy
Market opportunity
or need
Vehicle
structure
and size
Downside
Protection
Terms &
Conditions
Impact Thesis,
Theory of
Change
Active pipeline
Alignment of
interest
Relevant dealflow
14
Application & Process(*)
2. EIF’s assessment
Investment Readiness
Team and Track Record (WHO)
Market Opportunity (WHY)
Investment Strategy (WHAT)
Parameters (HOW)
Policy Fit (at least one indicator)
Internationalization
Multi-country focus
Countries with VC activity below average
Special focus areas: BA/TT/Social
H2020 sectors
EFSI Equity Instrument Call for EoI
1. Expression of interest – Deadline: 5 May 2018
http://www.eif.org/what_we_do/efsi/equity/index.htm
Subject
English
Annex I duly signed
Minimum Information [email protected]
(*) non-exhaustive , please consult our website for more detailed information
Contact Details
15
Silvia Manca
Head of Social Impact
Programmes
Institutional Business Development
Email: [email protected]
Web: www.eif.org
Yvette Go
Head of Social & Environmental
Impact Investments
Technology & Innovation
Email: [email protected]
Web: www.eif.org
http://www.eif.org/what_we_do/equity/sia/index.htm
http://www.eif.org/what_we_do/microfinance/easi/index.htm?lang=-en
http://www.eif.org/what_we_do/efsi/equity/index.htm
For further information on SIA, EaSI and EFSI Equity for social impact please visit:
With the financial support of the European Union
Silvia Manca EIF
Elinor de Pret EVPA
Andon Kalibatsev COM (DG ECFIN / L2)
Yvette Go EIF
Shadin Viratham COM (DG EMPL / E1)
Georgia Efremova COM (DG ECFIN / L2)
4. Panel Discussion & Q&A
With the financial support of the European Union
Don’t hesitate to contact EVPA’s Policy Team, should you have any follow-up question related to this webinar and / or to EVPA’s activities!
Simon Ott Policy Analyst
Dr. Lisa Hehenberger Policy Advisor
Lecturer at ESADE
Elinor de Pret Head of Policy
Thank You!
With the financial support of the European Union
EVPA is kindly supported by:
