Raising Capital for the Social Venture

Columbia Startup LabAugust 21st, 2014

Workshop Plan

1. Introductions

2. Entities & Hybrids

3. External Financing

4. Internal Financing

ENTITIES & HYBRIDS

Group Discussion

Org Type What is it? Intention? Pros/Cons

Non-Profit(501c3)L3C

B Corp

Benefit Corp

Community Interest Company

Hybridity within Entities

Multi-Hybrid…

Embrace Global &Embrace Innovations

EXTERNAL FINANCING

Investors

Investors II

VENTURE CAPITAL

SOURCE USE

SOURCE USE

SOCIALINVESTORS

Program Related Investments

Institutional Investors

Brad Feld on Preferred

Convertible Debt

Scale & Conflict in Impact

Sustainable

Scalable

DEC

REAS

ING

SU

BSID

Y

SIZE

EARNED REVENUEBUSINESS MODELS

Groups

1. SOCIAL IMPACT

2. SCALABILITY

3. RELEVANT FINANCING APPROACH

INTERNAL FINANCING

Partnerships

• Bypass direct capital investment

• Adapt strategy in response to opportunities

• Find the win-win solution, where partner

covers the downside

Reading

• HARVARD BUSINESS REVIEW ARTICLE• Use Customer Cash to Finance Your Start-Up• by John Mullins• Source: Harvard Business Review

Groups

1. OPPORTUNITIES FOR PARTNERSHIP

2. OPPORTUNITIES FOR REVENUE & CASH GENERATION