0
Social	
  Impact	
  Ventures	
  &	
  Raising	
  Capital:	
  
B	
  Corps	
  and	
  the	
  Social	
  Venture	
  Connexion	
 ...
2014-04-09 Pg 2
Agenda	
  
  Impact	
  Inves<ng	
  and	
  MaRS	
  CII	
  
  Social	
  Ventures	
  –	
  B	
  Corpora<ons	
  
  Funds	
  ...
Background:	
  Impact	
  Inves5ng	
  
What	
  is	
  impact	
  inves.ng?	
  
	
  
An	
  impact	
  investment	
  is	
  an	
 ...
5
$5.3B	
  
$100B	
  
$400B	
  -­‐	
  $1T	
  $30B	
  
WORLD	
  WORLD	
   CAN	
  
CAN	
  
2012	
   2022	
  
Key	
  Sectors:...
7
Background:	
  MCII	
  
Community
Finance
Solutions
Social
Impact
Bond
Incubator
Venture and
Capital Programs
Education ...
Greed	
  is	
  good.	
  
Only	
  charity	
  and	
  
government	
  can	
  do	
  good.	
  
“[T]here is one and only one
social responsibility of business -
to use it’s resources and engage
in activities designed t...
Maximize
Shareholder
Value
Pg 14!
73% of consumers care
about the company, not just the
product when making a
purchasing decision.	

<1% of consumers...
Certified B Corporations are a new
type of corporation which uses the
power of business to solve social
and environmental ...
Pg 16
Pg 17!
What is a B Corporation?
Pg 18!
Environment
Workers
Governance
Community
Redefining Success
Workers: The lowest paid
hourly worker receives 46%
above the living wage
Community: Contributed >5,000
hours of community...
Pg 20!
Pg 21!
Pg 22!
>990B Corporations
60 Industries
30 Countries
>110 Canadian B Corps
Pg 27!
Access to Capital – GIIRS/B Analytics
Pg 28!
Invest for impact.
Pg 29
Maximize
Shareholder
Value
We won’t have a new economy without a new type of corporation.
More than just a standard…
Pg 32!
20th Century:
Shareholder...
We hold these truths to be self evident:
That we must be the change we seek in the world.
That all business ought to be co...
To do so, requires that we act with the
understanding that we are each dependent upon
another and thus responsible for eac...
SVX	
  is	
  a	
  new	
  impact	
  inves<ng	
  plaPorm	
  connec<ng	
  impact	
  
ventures,	
  funds,	
  investors,	
  and...
  Access	
  to	
  capital	
  
and	
  investors	
  
  Raising	
  capital	
  is	
  
costly	
  
	
  
Problem	
  
A	
  growi...
Impact Investing+!
A	
  single	
  access	
  point	
  for	
  impact	
  ventures	
  and	
  investors	
  
Solu5on	
  
39	
  
Features & Benefits
How does SVX work?
Ventures	
  
What	
  is	
  the	
  target	
  profile	
  of	
  SVX	
  issuers?	
  
Inclusion	
  
	
  
Co-­‐ops	
  
Clean	
  
...
Target Issuers
Impact ventures and funds (<$25M revenues) including nonprofits
(including charities), co-operatives (nonpr...
Target Issuers
43	
  
Who are the target ventures and funds?
Two	
  Cohorts	
  of	
  Issuers	
  
Investors	
  
What	
  is	
  the	
  target	
  profile	
  of	
  SVX	
  investors?	
  
Founda5ons	
  
Family	
  
Offices	
  
Fin...
Pla[orm	
  
  Public	
  frontend	
  to	
  aZract	
  poten<al	
  
customers	
  alongside	
  private,	
  secure,	
  
passwo...
Access	
  Requirements	
  
What	
  is	
  the	
  process	
  for	
  accessing	
  the	
  SVX?	
  
Governance	
  &	
  Manageme...
Four Stages:
Registration, Application, Review and Matching
How	
  does	
  SVX	
  work?	
  
Process
Social Impact Ventures and Raising Capital: B Corporations and the Social Venture Connexion (SVX) – MaRS Best Practices
Social Impact Ventures and Raising Capital: B Corporations and the Social Venture Connexion (SVX) – MaRS Best Practices
Social Impact Ventures and Raising Capital: B Corporations and the Social Venture Connexion (SVX) – MaRS Best Practices
Social Impact Ventures and Raising Capital: B Corporations and the Social Venture Connexion (SVX) – MaRS Best Practices
Social Impact Ventures and Raising Capital: B Corporations and the Social Venture Connexion (SVX) – MaRS Best Practices
Social Impact Ventures and Raising Capital: B Corporations and the Social Venture Connexion (SVX) – MaRS Best Practices
Social Impact Ventures and Raising Capital: B Corporations and the Social Venture Connexion (SVX) – MaRS Best Practices
Social Impact Ventures and Raising Capital: B Corporations and the Social Venture Connexion (SVX) – MaRS Best Practices
Social Impact Ventures and Raising Capital: B Corporations and the Social Venture Connexion (SVX) – MaRS Best Practices
Social Impact Ventures and Raising Capital: B Corporations and the Social Venture Connexion (SVX) – MaRS Best Practices
Social Impact Ventures and Raising Capital: B Corporations and the Social Venture Connexion (SVX) – MaRS Best Practices
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Social Impact Ventures and Raising Capital: B Corporations and the Social Venture Connexion (SVX) – MaRS Best Practices

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There is a growing belief that businesses must do more than create value for shareholders. Non-profits and government cannot address current and future societal and environmental challenges without corporate involvement. If you are a startup looking to create value beyond profit, then you will want to learn about Certified B Corporations. This new type of corporation uses the power of business to solve social and environmental challenges. These types of certifications are ideal for raising capital from socially conscious investors.

Join us as Joyce Sou, Manager of B Corporations and Social Impact Metrics at the MaRS Centre for Impact Investing, discusses how Social Venture Connection (SVX) is helping capital flow for social impact ventures.

Participants will learn about the following:

What is impact investing?
What is a B Corporation?
How does SVX help B Corporations get investment?

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Transcript of "Social Impact Ventures and Raising Capital: B Corporations and the Social Venture Connexion (SVX) – MaRS Best Practices"

  1. 1. Social  Impact  Ventures  &  Raising  Capital:   B  Corps  and  the  Social  Venture  Connexion   ! By: Joyce Sou!
  2. 2. 2014-04-09 Pg 2
  3. 3. Agenda     Impact  Inves<ng  and  MaRS  CII     Social  Ventures  –  B  Corpora<ons     Funds  –  Raising  capital  through  the   SVX     Ques<ons  
  4. 4. Background:  Impact  Inves5ng   What  is  impact  inves.ng?     An  impact  investment  is  an  investment  in  a  project,  business,  or   financial  vehicle  with  the  explicit  inten<on  to  create  a  posi<ve   impact  and  generate  a  financial  return.         ********       Impact  investors  seek  to  move  beyond  “doing  no  harm,”  and   towards  inten<onally  deploying  capital  in  businesses  and     projects  that  can  provide  solu<ons  to  societal  problems.    
  5. 5. 5 $5.3B   $100B   $400B  -­‐  $1T  $30B   WORLD  WORLD   CAN   CAN   2012   2022   Key  Sectors:   Clean  technology,  sustainable   agriculture,  affordable  housing,   and  barrier-­‐breaking   enterprises.     Background:  Impact  Inves5ng  
  6. 6. 7 Background:  MCII   Community Finance Solutions Social Impact Bond Incubator Venture and Capital Programs Education and Knowledge Creation Policy and Development Research reports, educating and engaging prospective talent, ventures, and investors, disseminating knowledge. Catalyzing funds, connect investors and ventures and developing capital initiatives. Advancing recommendations of the Task Force, including legislative reforms & tax regs, and outcomes-based financing.
  7. 7. Greed  is  good.  
  8. 8. Only  charity  and   government  can  do  good.  
  9. 9. “[T]here is one and only one social responsibility of business - to use it’s resources and engage in activities designed to increase its profits...”
  10. 10. Maximize Shareholder Value
  11. 11. Pg 14! 73% of consumers care about the company, not just the product when making a purchasing decision. <1% of consumers trust company advertisements or statements on packaging 80% of Millenials expect to work for a company that has a positive social impact
  12. 12. Certified B Corporations are a new type of corporation which uses the power of business to solve social and environmental problems. What is a B Corporation?! video
  13. 13. Pg 16
  14. 14. Pg 17!
  15. 15. What is a B Corporation? Pg 18! Environment Workers Governance Community Redefining Success
  16. 16. Workers: The lowest paid hourly worker receives 46% above the living wage Community: Contributed >5,000 hours of community service 45% of COGS goes towards investing and supporting small scale suppliers Donated >5% of profits to charity Environment: Offset >50% of emissions with certified carbon offsets Pg 19!
  17. 17. Pg 20!
  18. 18. Pg 21!
  19. 19. Pg 22!
  20. 20. >990B Corporations 60 Industries 30 Countries >110 Canadian B Corps
  21. 21. Pg 27!
  22. 22. Access to Capital – GIIRS/B Analytics Pg 28! Invest for impact.
  23. 23. Pg 29
  24. 24. Maximize Shareholder Value
  25. 25. We won’t have a new economy without a new type of corporation. More than just a standard… Pg 32! 20th Century: Shareholder Capitalism 21st Century: Stakeholder Capitalism Maximize shareholder value almost exclusively Create social and shareholder value simultaneously
  26. 26. We hold these truths to be self evident: That we must be the change we seek in the world. That all business ought to be conducted as if people and place mattered. That through their products, practices, and profits, businesses should aspire to do no harm and benefit all.
  27. 27. To do so, requires that we act with the understanding that we are each dependent upon another and thus responsible for each other and future generations.
  28. 28. SVX  is  a  new  impact  inves<ng  plaPorm  connec<ng  impact   ventures,  funds,  investors,  and  service  providers  to  catalyze   debt  and  equity  investments  that  generate  social  and/or   environmental  impact  alongside  the  poten<al  for  financial   return.   MaRS  VX,  the  parent  company  for  SVX,  is  an  nonprofit  organiza<on,  incorporated  in  Canada.  
  29. 29.   Access  to  capital   and  investors     Raising  capital  is   costly     Problem   A  growing  group  of  social  entrepreneurs  and  impact  investors,  but...   There  is  an  uncoordinated  impact  inves5ng   marketplace.     Finding  quality  deals   and  co-­‐investors     Due  diligence  is  costly   and  5me  consuming   Ventures   Investors  
  30. 30. Impact Investing+! A  single  access  point  for  impact  ventures  and  investors   Solu5on  
  31. 31. 39  
  32. 32. Features & Benefits How does SVX work?
  33. 33. Ventures   What  is  the  target  profile  of  SVX  issuers?   Inclusion     Co-­‐ops   Clean   Technology   Nonprofits     &  Chari5es   Community   Infrastructure     Health  and   Wellness   For-­‐profit   businesses   Sustainable   Food   Educa5on  &   Social  Tech   Loans    I    Bonds    I    Co-­‐op  and  Common  Shares    I    Limited  Partnerships  
  34. 34. Target Issuers Impact ventures and funds (<$25M revenues) including nonprofits (including charities), co-operatives (nonprofits and for-profits), and for-profit businesses looking for $25K - $10M. Who are the target ventures and funds?
  35. 35. Target Issuers 43   Who are the target ventures and funds?
  36. 36. Two  Cohorts  of  Issuers  
  37. 37. Investors   What  is  the  target  profile  of  SVX  investors?   Founda5ons   Family   Offices   Financial   Ins5tu5ons   Angel   Investors   Venture   Capitalists   HNWIs   Alterna5ve   Financial   Ins5tu5ons   Impact   Funds   Accredited   Investors  
  38. 38. Pla[orm     Public  frontend  to  aZract  poten<al   customers  alongside  private,  secure,   password  protected  plaPorm     Custom  built  by  The  Working  Group  on   Ruby  on  Rails  with  following  func<ons:     Online  applica5on  and  progress  tracking  with  tool   <ps  to  answer  customer  ques<ons     Keyword  and  Category  Search  Directory     Private  Deal  Rooms  with  document  sharing  and   interac<on     Clean  profile  views  with  feature  plugins  including   YouTube  and  Slideshare     Full  user  management  (Delete/Approve/Create   users)  and  content  management     Venture  tools  and  templates  (e.g.  term  sheets,   pro-­‐forma  projec<ons)   46   How  does  the  online  plaAorm  work?  
  39. 39. Access  Requirements   What  is  the  process  for  accessing  the  SVX?   Governance  &  Management     •  Ontario  incorporated   •  Strong  governance  structure   •  Evidence  of  relevant  exper<se  within   management  and/or  directors   •  Disclosure  of  any  current  or  past  legal  ac<ons   against  management  and/or  directors   Impact     •  Ontario-­‐focused  impact   •  Five  (5)  Key  Performance  Indicators  (IRIS-­‐ based  if  possible)   •  GIIRS,  3rd  party  ra<ng  (or  B  Corp),  for  social   purpose  businesses   •  Impact  narra<ve   Financials     •  Revenue-­‐genera<ng  ($50k  -­‐  $25M  annually)   •  No<ce  to  Reader  financial  statements   •  Pro-­‐forma  projec<ons   •  Adequate  current  assets,  fixed  assets,  or  cash   reserves   •  Ownership  informa<on,  including  past  and   current  sources  of  capital     Other     •  Complete  business  plan   •  External,  professional  references   •  Auditor/reviewer  &  legal  counsel  contact   informa<on   •  Debt  &/or  equity  capital  need  ($25k-­‐10M  for   ventures,  $2-­‐50M+  for  funds)   •  IP  &  R&D  informa<on  (if  necessary  should   venture  not  meet  revenue  requirements)  
  40. 40. Four Stages: Registration, Application, Review and Matching How  does  SVX  work?   Process
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