Philadelphia Social Innovations LabFunding for Start Up Companies

February 17, 2015Clifford C. David, Jr.

Conservation EconomicsPresident & CEO

President & CEO Conservation Economics

President Heritage Conservancy

Manager Northwest Park

BOARDS

Pennsylvania Department of Conservation & Natural Resources

Temple Ambler Board of Visitors

Lacawac Sanctuary

Sustainable Business Network

West Laurel Hill Cemetery and Funeral Home

Delaware Valley College Presidents Advisory Council

IMPACT INVESTING

TRIPLE BOTTOM LINE

• FINANCIAL

• ENVIRONMENTAL

• SOCIAL

B LAB

IMPACT ASSESSMENT

Governance Corp Accountability – Transparency – Governance Metrics Workers Compensation, Benefits, Training, Worker Ownership, Work Environment

Community Community Practices – Donations – Supported Org.

Environment LEED, Water/Energy use/conservation

FUNDING

Personal & Credit Cards Friends & Family

Angel Venture Capital Initial Public Offering (IPO)

WHAT WE LOOK FOR WHEN INVESTING

• Impact – Blend Mission & Money

• New Ideas/Products/Services

• Intellectual Property – Patents, Copy write, Trade Mark

• Regulations that impact business

• Other funding sources

• Skin in the game

WHAT WE LOOK FOR WHEN INVESTING

• Company Advisors

• Key staff

• Competitors

• Are you offering stock, debt, etc.

• Time to exit

• Exit strategy

WHAT WE LOOK FOR IN THE BUSINESS PLAN

• Burn Rate

• How will you scale

• Who are potential partners

• What is your differenator

• Culture

• Business Plan

• No J curves

• Pro forma – Budget/Balance Sheet

• How much money do you want/need

• How will you use the money

• Pre Money Value

WHAT WE LOOK FOR IN THE BUSINESS LEADER(S)

• Business Experience

• Experience in the business sector

• Willingness to listen and be coached

• Experience with failure

• Passion/Can do attitude

• Honesty

WHAT WE LOOK FOR IN THE BUSINESS LEADER(S)

• Values

• Focused Flexibility – Things will change

• Surround themselves with smart people

• Acknowledge Mistakes

• Creativity

• Don’t be defensive

• Know the obstacles

WHAT WE WANT AS AN INVESTOR

• Return of our investment

• Profit

• Seat on the Board/Observer

• Impact

WHAT WE BRING TO THE BUSINESS• Money

• Experience

• Contacts

• Sources for additional investment

• Focus

• Stability

• Emotional support

OTHER FUNDING SOURCES FOR START UP COMPANIES• Investors Circle – Philadelphia

• Patient Capital Collaborative

• Ben Franklin Technology Partners

• Robin Hood Ventures

• Delaware Crossing Investors Group

• Mid-Atlantic Angel Group

• Good Company

• Mayors Office of Sustainability

• Sustainable Business Network