Policy Webinar #15 - EVPA › uploads › documents › Policy_webinar_15...gap for new impact ventures in Europe” Policy Webinar #15 Introduction • The importance of supporting

Policy Webinar #15

Incubators and Accelerators: bridging the gap for

new impact ventures in EuropeWednesday, 6th March 2019 | 15:00–16:45 CET

WELCOME

Luís Fonseca

Managing Partner, MAZE

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 [726-208-990].

▪ If you have technical issues accessing the Webinar

please call Gianluca Gaggiotti in the EVPA Brussels office

[+32 (0)2 513 21 31].

2

GoToWebinar | Tips & Tricks (2/2)

Q&A TIME

• Participants are muted throughout the webinar.

• You are invited to ask questions in written form to our

panellists. Your questions will be addressed during a

Q&A session at the end of the webinar.

• If you have a technical issue connecting or following the

webinar, please submit a comment explaining your

issues using the Questions panel.

• This session is recorded.

3

Policy & Public Affairs @ EVPA

CatalystThought Leader

4

Policy Webinar Series

25.06.2014 Policy Webinar #1 | EuSEF Regulation

25.09.2014 Policy Webinar #2 | Impact Measurement

05.03.2015 Policy Webinar #3 | Social Impact Bonds in the EU

17.06.2015 Policy Webinar #4 | How can VP/SI Practitioners access EU funding

23.09.2015 Policy Webinar #5 | Social enterprises and Public Procurement

16.03.2016 Policy Webinar #6 | Crowdfunding for Impact

21.06.2016 Policy Webinar #7 | Ordinary People as Social Impact Investors

23.11.2016 Policy Webinar #8 | EU Funding Update for VP/SI Practitioners

22.03.2017 Policy Webinar #9 | Foundations & Social Impact – Going beyond grant-making

14.06.2017 Policy Webinar #10 | The Sustainable Development Goals & VP/SI

12.12.2017 Policy Webinar #11 | Fostering public private collaboration to address social issues

11.04.2018 Policy Webinar #12 | How EuSEF’s recent reform can impact the VP/SI sector

20.06.2018 Policy Webinar #13 | Outcome Funds - Challenges and Opportunities

11.12.2018 Policy Webinar #14 | Invest EU: What‘s in it for venture philanthropists and social investors?

5

Programme

Time Description Speaker

15:00 – 15:15Welcome to participants

Introduction to the topic, agenda and speakersLuís Fonseca, MAZE

15:15– 15:30Examine the role of accelerator and incubators in promoting

social innovation Luís Fonseca, MAZE

15:30 – 16:00 Case studies: success stories from practitioners

Lorenzo Triboli, Fondazione Social

Venture GDA

Jessica Stacey, Bethnal Green

Ventures

Peder L’orange, Katapult

Accelerator

16:00 – 16:30 Q&A with speakers All panellists

16:30 – 16:45 Concluding remarks and next steps Luís Fonseca, MAZE

6

“Incubators and Accelerators: bridging the

gap for new impact ventures in Europe”

Policy Webinar #15 Introduction

• The importance of supporting early stage social innovation: from

prototyping to product-market-fit and scale

• The importance of creating the right policy incentives to promote

investment readiness support throughout Europe

• Success stories from practitioners

7

Incubators vs Accelerators

8

PURPOSE

Incubators

Accelerators

DURATIONAPPLICATION

PROCESS

SUPPORT

PROVIDED

• Early stage

• Ideation to product

• Develop a network of

support

• Scale and growth

• Product to market-fit

• Prepare for

investment readiness

• Open ended-

timeline

• Often incubation

is a long-term

process

• Set timeframe

• Usually between

3-6 months

• Often focus on local

impact ventures with

less pressure to

grow

• Ventures go through

a traditional

application and

selection process

• Offer mentorship,

co-working space

• Offer workshops,

mentorship, co-

working space,

roadshows, demo

days, corporate

pilots, training

modules

Often

converge

Source: Entrepreneur (2017)

Role in the ecosystem

9

STAGE

KEY ACTIVITIES

EXAMPLE

(non-exhaustive)

4. SCALING3. PREPARATION2. VALIDATION1. BLUEPRINT

Develop

prototype

Build

organizational

capacity

Conduct market

trials

Move to new

geographies /

segments

FUNDING

(AVAILABILITY)

FUNDING

(NEED)

n/a ~150-500 K€ >500 K€ >3M €

Incubators

Accelerators

The financing amounts that the majority of social enterprises need are relatively small and the transaction costs for

these tickets are comparatively high, hence, social impact fund managers have an incentive to focus on higher amounts

in order to preserve the fund's sustainability. This leads to a mismatch of needed and sustainable ticket sizes, i.e. a

clear market failure

Source: Employment and Social Innovation Programme - European Commission

Benchmark

10

Sponsor: corporates sponsor acceleration in exchange

for pilot opportunities with the ventures

Equity: equity provided in exchange for financial support

Fund: incorporates a fund that may promote seed

investment after the acceleration

BUSINESS MODEL

Early stage: focus on developing prototype

Growth stage: finding product to market fit through

market trials and building organizational capacity to

scale (prepare for investment readiness)

STAGE

Cohort size per year (2/year)

Duration of the program: ~3 months

KEY FEATURES

Generalist: not focused on a particular industry/sector,

provides holistic support in different fields

Specific: recruitment focused on a set vertical (eg. tech)

and specializes in a specific industry

FOCUS

Sample includes

Policy instruments to support incubation/acceleration

11

EASI 2013 and EASI 2016

Strand D:

Development of investment readiness support for social

enterprises

• generate a pipeline of social enterprises prepared

to access social finance for development and

growth

• aims at developing a fine-tuned system of advisory

services and capability building on social finance

EFSI Equity social impact

investment instruments

Investments in or alongside Financial Intermediaries linked to

incubators and/or accelerators

• offers investment and co-investment schemes to

Intermediaries linked to incubators and/or

accelerators

• focus on pre-commercial stage up to the early

growth

InvestEU

• One of the four main pillars of the proposal includes social investment and skills

Source: EC Call for proposals, The Invest EU Programe

Welcome to our e-Speakers!

Jessica Stacey

Venture Partner

Bethnal Green Ventures

Lorenzo Triboli

Impact investing Associate

Fondazione Social Venture GDA

12

Peder L’orange

Associate

Katapult Accelerator

Lorenzo Triboli

Fondazione Social

Venture GDA

Case Study: Cariplo Social Innovation

Cross-sectoral project from:

14CARIPLO SOCIAL INNOVATION – INSTITUTIONAL PRESENTATION

Fondazione Cariplo has allocated €20M to an integrated strategy addressing

both the demand and supply side of the market

We created a vehicle that

promotes and realizes

impact investments

IMPACT INVESTING

Training, grants and

additional support for non

profit organizations

CAPACITY BUILDING

5 calls dedicated to incubating /

accelerating new social

businesses, accompanying

them to investibility

SOCIAL ENTREPRENEURSHIP


Creation of an open source distance learning platform: CSI LAB

socialinnovationlab.fondazionecariplo.it

A series of workshop, seminars and lectures: CSI TALKS

WWW.FONDAZIONECARIPLO.IT

€2,5 M for the first edition (2017/2018): From €30.000 up to €100.000 for

NPOs targeting themes such as organizational empowerment,

leadership & generational change and internationalization

CALL FOR GRANTS SUPPORTING MEASURES

The capacity building action aims at strengthening innovative third sector

organizations, capable to express demand for social finance

190 applications | €15 M requested grant | €80.000 average


We designed a new vehicle to foster the growth of the Italian impact investing ecosystem and create a

supply of patient capital

8,5MILLIONS €

ENDOWMENT

TRADIZIONAL

FINANCE

“SRI”

RESPONSIBLE

INVESTMENTS

“ESG”

SUSTAINABLE

INVESTMENTS ‘‘FINANCE FIRST’’ ‘‘IMPACT FIRST’’ PHILANTROPY

IMPACT INVESTING

FINANCIAL RETURN OBJECTIVESCAPITAL

PRESERVATIONGRANT-MAKING

INTERPRETED AS IMPACT INVESTING

INCIDENTAL IMPACT:

Target companies typically answer market needs,

while featuring sustainable or responsible business

models

SEEKING IMPACT INTENTIONALLY:

Target companies intentionally tackle social or

environmental challenges, while featuring

economically sustainable business models

PURE IMPACT:

Typically require grants

and fundraising activity

We are focusing on a venture capital approach in the "impact first" segment


Both profit and non-profit, such as:

• Social enterprises

• Social cooperatives

• Innovative socially-driven start-ups

• Benefit Corporations (“B-Corps”)

• Socially-driven limited companies

(also for profit)

Impact investing vehicles that target

companies intentionally pursuing a

social impact

Our targets might include managed

funds or sub-funds, SICAFs, SICAVs,

Holding companies

DIRECT INVESTMENTS

AND CO-INVESTMENTS

INDIRECT INVESTMENTS

INVESTMENT STRATEGY INVESTMENT TARGET

SOCIALLY-DRIVEN COMPANIES

OUR FIRST DEALS

We strongly believe both direct and indirect investments

are fundamental to have the ecosystem grow

SOCIAL IMPACT FUNDS

€1,0 M commitment in Oltre II

€0,7 M company's shares

€0,5 M convertible bond

€0,5 M stocks + quasi equity


New social entrepreneurs are starting to emerge in Italy,

their ideas and projects have potential but are too

premature to be invested by FSVGDA

WE ARE CREATING AN ENVIRONMENT TO HELP

NEW SOCIAL STARTUPS THRIVE

We launched a new service providing platform to facilitate social entrepreneurship in Italy and supply an

additional way to access FSVGDA's pipeline


IDEA GENERATION

START-UP

VALIDATION

START-UP

SELECTION

GROWTH

SCALABILITY

ACCELERATORSINCUBATORS

ITALIAN UNIVERSITIES

BUSINESS PLAN

COMPETITION

INCUBATORS AND

ACCELERATORS

• Sector specific professionals

• Commercial partners

• Legal and fiscal consulting

VALUE ADDED PARTNERS

MENTORS /

BUSINESS ANGELS

INVESTORS

NETWORK

brings together all the actors needed to support business initiatives in their initial stages of

development tackling relevant social challenges

100Ideas and start-

ups invited at 1

of the 5 selection

days

5Thematic "Call

for impact"

50Incubation /

acceleration

programs

(3 months)

50Tailor-made

mentorship

programs

(3 months)

50Possible

FSVGDA

investments

4Additional equity

prizes


WELFARE, HEALTH

& WELLNESS

• Digital and IT solutions for

Welfare

• Ageing population

• Social inclusion & Disability

5 thematic call for impact

SMART CITIES & MOBILITY

ACTION, FOOD & ENVIRONMENT

• Accessibility & Urban Recovery

• Food & Environment

ACCESSIBLE & SUSTAINABLE

TOURISM AND CULTURAL

HERITAGE

• Accessible tourism

• Experiential tourism

• Management & Cultural

Heritage

EDUCATION & JOB

OPPORTUNITIES

• Learning deficits & school

dispersal

• Job opportunities creation

• Gender Equality

5#Call4impact

KEY ENABLING TECHNOLOGIES

FOR SOCIAL INNOVATION

MARCH–APRIL 2018 JULY-SEPTEMBER 2018 NOVEMBER '18-FEBRUARY '19 EARLY 2019

MAY 2018 - EARLY 2019

Open until early 2019

Following call #3Following call #297 candidates

4 selected start-ups

105 candidates

8 selected start-ups

Jessica Stacey


Case Study: Bethnal Green Ventures

OUR MISSION

We invest in and scale tech for good ventures

that significantly improve millions of lives

and deliver great returns for investors.

Since our launch in 2012, we’ve invested in 113 ventures

through 13 accelerator programmes

Over 7 million

beneficiaries in

the last quarter

We’ve

invested

£2.5m so far

£50m further

investment

raised by

ventures

1.9x multiple

of value to

investment

costat 30 June 2018

(27% gross IRR)

37 % of our

portfolio

employees are

female(3x higher than tech

industry average)

BGV AT A GLANCE

OUR APPROACH

100% focus on

companies

developing

technology to

have a positive

impact on society

or the

environment

Tech for Good

Targeting

companies with

the potential for

high-growth and

significant

investment

Financial returns

A diversified

portfolio of

companies

balanced across

health,

sustainability,

education and

civic engagement

Diversification

BGV’s’ intensive

accelerator

programme and

life-long access to

learning, coaching

and connections

with 90+ mentors

Portfolio support

High quality

deal flow

through BGV’s

extensive

network and

strong track

record

Dealflow

OUR HISTORY

2008

2011

2012

2013 - 2016

● Raise £2.6m

● 80 ventures

● Post-accelerator funding

● BGV a B-Corp

2017-2018

● £1.3m invested in BGV growth

● Programme partnerships

2019

● BGV II

● BGV SEIS and EIS Fund

● BGV LLP

● 2nd BGV cohort

● “The Startup Factories”

● Pilot of BGV

● Social Innovation

Camp

Peder L’orange

Kapatult Accelerator

Case Study: Katapult Accelerator

Investor PresentationMarch 2019

“Build the world you want to live in”27

Katapult Accelerator – A Global Impact-Tech Accelerator

USD 150,000 investment in seed stage startups for 8% equity + targeted follow-on investments

Exponential Technologies

Massive Business Opportunities

Global Talent

KA is currently raising capital for Accelerator Fund 3 + Follow-On fund35Companies

22Countries

~40%Female Founders

▪ Invests in top ~20% of each batch

▪ Target Size: USD 6M

Hands-on Mentorship

Thematic Curriculum

Door Openers

What is the Katapult Accelerator?

12 companies in 3-month intense residential program in Oslo. Two batches every year (spring & fall)

Deal flow:

International & diversified portfolio:

5800+ candidate companies,110+ countries → 47 seats

Batch 1-4 Deal Flow

We source companies with scalable business models, leveraging expo-nential tech, while solving our planet’s and society’s biggest issues

Highlights:▪ 6 companies p.t. raising Series A (10-25 MUSD valuation)

▪ 2/3 of batch companies in next or second raise▪ Estimated unrealized IRR for KA Fund 1: 65%

Current Investment opportunities:

Accelerator Fund 3

Follow-on Fund

▪ Invests 150k USD for 8% equity

▪ Target size: USD 6M (3 batches)

28

Click to edit Master title styleTime running out to solve the global grand challenges

▪ UN Sustainable Development Goals

▪ «The greatestcollective projectof our time»

▪ Only ~4000 daysleft to 2030 deadline

29

Click to edit Master title style“The single largest investment opportunity in history”

30

Al Gore, Oslo,

November 2018

Larry Fink, Blackrock CEO

Jan 2018

Click to edit Master title style

Katapult0,9%

Harvard U5,8%

Y-Combinator1,5%

Acceptance rate

4000+ candidate companies110+ countries → 35 seats

31

World class deal flow – first three batches


Batch 4 – starting March 2019 Candidate companies: 1 820 Countries: 98

20 – 40

41 – 100

101 – 199

201 >

< 20

Dealflow for batch four is the strongest to date

32

Click to edit Master title styleInternational & diversified portfolio (since Aug 2017)

35Companies

22Different Countries

~40%Female

Founders

33


34

Smart & Green Cities / Mobility

Financial/Commercial

Inclusion

Med/Health Tech Education-Tech

Resource (food/land) Utilization

Clean-Tech / Renewables

Development & Sustainability-tech

Our portfolio – covering seven global megatrends

Katapult Accelerator – Executive Summary

Exponential Technologies

Massive Business Opportunities

Global Talent

▪ Invests in top ~20% of each batch

▪ Target Size: USD 6M

FOCUS AND DEALFLOW:

5800 candidate companies,110+ countries → 47 seats

Batch 1-4Deal Flow

We invest in the world’s best impact startups, with scalable business models, leveraging exponential tech, solving humanity’s and our planet’s biggest issues

CURRENT INVESTMENT OPPORTUNITIES:

Accelerator Fund 3

Follow-on Fund

▪ Invests 150k USD for 8% equity

▪ Target size: USD 6M (3 batches)

Of companies has female co-founder(s)

HIGHLIGHTS:

65%

6

35

Estimated unrealized IRR for KA Fund 1

Portfolio companies grown to Series A rounds (Valuation now between 10 – 24 MUSD)

Companies → Current portfolio size

40%

Won best Norwegian Accelerator at The Nordic Startup Awards

Articles written internationally70+

35

Q&A: Incubators and Accelerators: bridging the gap for new impact ventures in Europe

Jessica Stacey

Venture Partner


Lorenzo Triboli

Impact investing Associate

Fondazione Social Venture GDA

Peder L’orange

Associate

Katapult Accelerator

Thank you!

RUE ROYALE 94

B-1000 BRUSSELS

T +32 2 513 21 31

EVPA.EU.COM

[email protected]

european-venture-philanthropy-association

@_EVPA_

Documents

Policy Webinar #15 - EVPA › uploads › documents › Policy_webinar_15...gap for new impact ventures in Europe” Policy Webinar #15 Introduction • The importance of supporting