Blake Lapthorn green breakfast with guest speaker Jamie Hartzell, MD of Ethex - 17 October 2012
Investing for Change The first ever online service dedicated to retail ethical investors
Ethex is unique Ethex is unique, because it is: •For retail investors •For middle stage businesses •Focused on equity •Looking for strong social and environmental returns •Non-profit •Built on trust •Based on collaboration and sharing
Europe’s most wanted: Rank Company Sector 1 BG Group PLC Gas 2 Vodafone Group Telecommunications 3 Nestle SA Food 4 ABB Ltd Engineering 5 Novartis Pharmaceuticals 6 Roche Holdings Pharmaceuticals 7 HSBC holdings Finance 8 Sanofi Pharmaceuticals 9 BNP Paribas Finance 10 Siemens AG Engineering
Benefits for the investors • Brokerage of your investment. • Portfolio management. • Profile of member businesses. • Prices and trading histories. • News on investment opportunities. • A chat forum on ethical investment issues. Ethex is both a Club and a Fund with both investors and social businesses as members.
Benefits for Businesses • Investment from Ethex members. • Improved profile and investor relations. • Cheaper to raise capital. • Improved liquidity • Corporate finance support. • Advice on preparing to receive investment • Registrars service Ethex expects to attract up to 5 new businesses a year
The Founding Businesses 1. Allia 2. Cafedirect 3. Charity Bank 4. Ecology Building Society 5. Ekopia Resource Exchange 6. Ethical Property Company 7. Good Energy 8. Oikocredit 9. Traidcraft 10. Bristol Credit Union Ethex aims to turn up to 3 start-up businesses into established businesses each year.
Possible New Businesses • Social enterprises where venture capital wants to exit • Established charities issuing bonds to the general public • Housing associations • Credit unions and CDFIs • Larger community share issues • Positively screened SRI funds
Existing Ethical Investors How many ethical investors are out there? Shareholders in ethical businesses such as Traidcraft, CafeDirect, Ethical Property, Triodos Renewables. 25,000 Investors in IPSs such as Shared Interest, Energy4All, the Phone Co-op and CDFIs 25,000 Depositors in Triodos, Ecology Building Society and Charity Bank 40,000 All ‘Direct ethical investors 90,000 Ethex aims to attract at least 200 new investor members a year
Steps to commercial success Ethex strengthens businesses ability to take on investment as they: • Understand how investors influence their business • Have an investment product to offer • Can manage small numbers of investors • Can manage large numbers of investors • Are ready to list on the Social Stock Exchange.
Wising up to Ethical Investment Investors become more sophisticated as they: • Want to learn about ethical investment • Are able to assess social & financial returns • Understand investment risks • Are able to manage a portfolio of ethical investments • Become a sophisticated investor Ethex can help investors to make more sophisticated investment decisions
Areas of website 1. Ethical know-how helps investors better to understand ethical investment 2. The Marketplace provides detailed information on ethical investment opportunities 3. The Meeting Place creates discussion, allows feedback and gathers research 4. My Account is where investors can manage their portfolio of investments The website aims to build a relationship of trust with its users