What funding model for Social Business?

finance + social business + web 2.0What funding model forSocial Business?April 11, 2011 SUNII

About the contributorsUnder the initiative of danone.communities, Accenture and HEC Social Business chairconducted a survey on Social Business funding modelsdanone.communities is an incubator for social enterprises, born at the initiativeof Professor Muhammad Yunus and Danone. Its mission is to promote, supportand fund social business, responding to questions from malnutrition and poverty…Accenture is a global management consulting, technology services and outsourcing company, withmore than 215,000 people serving clients in more than 120 countries. Combining unparalleledexperience, comprehensive capabilities across all industries and business functions, and extensiveresearch on the world’s most successful companies, Accenture collaborates with clients to help thembecome high-performance businesses and governments.HEC Social Business chair develops action research and quality research on strategic innovationin societal fields and offers a teaching program examining Social Business themes and studying theinvolvement of business in the fight against poverty. The chair is co-presided by Pr. MuhammadYunus and Mr. Martin Hirsch and receives the financial support of Danone, Schneider Electric, theFrench government (DGCS) and private donors.Thank you to the HEC students Markus Beck, Tine Fossland, Tyler Goin and Felix Heinrich for theirvaluable contributions.Contactsdanone.communities Accenture HEC Social Business chairdanonecommunities.com accenture.com hec.edu/certificates/social-businessEmmanuel Marchant Michel Moullet Bénédicte Faivre-TavignotChief Executive Senior Executive Executive Directoremmanuel.marchant@danone.com michel.moullet@accenture.com faivretavignot@hec.frOlivier Maurel Frédéric TonduSocial Innovation Animation Manager Managerolivier.maurel@danone.com frederic.tondu@accenture.comfinance + social business + web 2.0 2

About the contributorsThe survey has been conducted with the support of danone.communities partners,including: SUNIIThe following organizations have been interviewed: izi-collecte, FriendsClear, Groupe SOS, aiderdonner, entrepreneurscommons, Kiva, Babeldoor, MicroDon, Babyloan, Nexii Global, SUNII / Blue Green Energy, Regioneo.finance + social business + web 2.0 3

Abstract• Internet already transformed charities’ fundraising strategies and danone.communities wanted to investigate the potential to accelerate Social Business development, by leveraging Internet’s capacity to call for crowd-funders and in the same time establish Peer-to-Peer relationships.• We examined almost 80 websites covering P2P fundraising , sourced mostly from developed countries in America and Europe, to have a good understanding of the trends and identify emerging models. Also, we conducted interviews with danone.communities partners to share their experiences and investigate the barriers and key success factors for Social Business fundraising.• In fact, we found more websites than we expected, allowing supporters to follow their favourite causes, offer their time, and give, lend or invest funds in non-profit organizations or specific projects. Most examples lay in the domains of charities or creativity & individuals’ projects.• Although most websites in our sample were created over the last 3 years (65% of identified websites created over 2008-2010), with the emergence of Entrepreneurship and Creativity & Individuals’ projects, most of top 10 websites (above €8M funds raised /year) were created before 2007. Only two recently launched website reached the top 10: Kickstarter (crowdfunding portal) and Funding Circle (P2P loans).• Overall, Social Business remains little covered.• The gap can be explained by the complexity and the variety of funding opportunities, and probably the lack of visibility and appeal of social business projects compared to charities or creativity & individuals’ ones. To overcome these challenges, good practices of best performing websites such as innovative communication and marketing approaches could be leveraged to attract investors.• In terms of funding model, P2P lending has been significantly developed for social business, mainly by Kiva and its numerous followers; however, it addresses only small-size projects (up to €3,000).• Investment platforms (1 specialized in Social business) offer to fund larger projects up to €300-500,000, but this model is not economically viable for projects below 20% ROI due to high admin, due diligence and communication & marketing costs (should d.c. mutual fund be distributed beyond the current Danone employees basis, it would not cover those costs)• This study is a first step in a larger process. It helped us design one picture of the financial landscape for Social Business and evaluate the state-of-the-art of Internet technologies in 2011. We hope it could serve other organizations. We are very open for new collaborations if others want to share ideas and concrete actions on how to finance social businesses through the web.finance + social business + web 2.0 4

Contents Online Fundraising overview What model(s) for Social Business? Conclusions Appendix -Analysis of funding models -Detailed analysis of websites -Data collectedfinance + social business + web 2.0 5

We analyzed funding models beyond platforms addressing Social Business needs Mapping of analyzed platforms 75 websites Charities Charity projects Social entrepreneurs Entrepreneurs Creativity and Individuals Axa Atout coeur, Koeo, Sparked, Volunteermatch , Idealist, Startupschool, babelbee Dreamshake Help jagispourlanature.org Jumo, Everywun, Care2, WiserEarth MySpace Follow • Causes (facebook), Act of Good • Babeldoor, Ullule, Kickstarter, • betterplace, bringlight, global giving Kisskissbankbank, RocketHub, Pozible, • Aiderdonner, Justgiving SASIX (Nexii), IndieGoGo, Invested.in, MyFootballClub Donate • izi-collecte, Network for Good BVS&A (BOVESPA) • Fans Next Door, PledgeMusic • Ebay GivingWorks, Endorse for a Cause, • Jaimel’info socialvest.us, CauseOn • Flattr • Veosearch, Mailforgood, Olozim Kiva, Babyloan, Xetic, Wokai, Main Lend MyC4, RangDe, Friendsclear, Fairplace, Lending Club, Prêt d’Union, Zopa,focus energyincommon Microplace, Dhanax Funding Circle, Cofundit Prosper, Rate Setter, Yes-secure, Quakle • Wiseed, Crowdcube, Microventures, Shareposts, • MyMajorCompany, Sellaband, Invest 33needs Mission Markets CrowdaboutNow CatWalkGenius • Profounder, • GrowVC Most websites belong to 4 categories: •Charity fundraising (22%) •Crowdfunding for Creativity and Individuals (17%) •P2P loan for Entrepreneurs or Creativity and Individuals (15%) •P2P micro-credit (7%)Note 1: Paid crowdsourcing platforms (innocentive, cofundos...) or open source project platforms (wikipedia, mozilla...), that could be compared to such websites as Volunteermatch, Babelbee or Dreamshake were not included.Note 2: Social market places exist, still in a project phase: IIX Asia, BVS (Euronext Lisbon), Social Stock Exchange (London), NextSSE (Germany), PII (France); Gate finance + social business + web 2.0 6

We see a large diversity and high specialization of fundingplatforms, per domain and per type (no all-inclusive solution)Platforms per type •• Crowd-funding is particularly prolific Crowd-funding is particularly prolific •• Online fundraising is largely widespread, Online fundraising is largely widespread, •• Loan is the main model in Loan is the main model in with 2 (opposite) models with 2 (opposite) models with a lot a innovative models; most of them with a lot a innovative models; most of them entrepreneurship business (interest- entrepreneurship business (interest- o Give for free/ fun o Give for free/ fun support causes rather than projects support causes rather than projects free, via MFIs in social business) free, via MFIs in social business) o Lend for (high) profit o Lend for (high) profit Charities Charity projects Social entrepreneurs Entrepreneurs Creativity and Individuals Startup trainings Volunteer recruitment Help P2P translation Volunteer recruitment Follow Music social networks Charity social networks Fundraising portals General crowdfunding “Social return only” Fundraising event pages Stock markets Themed crowdfunding Donate Donations mgmt tools Shop for a cause Flattr Browse for a cause Lend P2P Micro-credit P2P loans P2P consumer credit GrowVC 33needs danone.communities Community investment Invest Private investment •• We see investment models, but mostly in a starting We see investment models, but mostly in a starting phase phase •• Popularity around ‘Investment-like‘ models is actually Popularity around ‘Investment-like‘ models is actually driven by the success of MyMajorCompany driven by the success of MyMajorCompanyfinance + social business + web 2.0 7

We see an accelerated growth in Funding platforms over the last 3 years, driven by the emergence of new models for Entrepreneurs and for Creativity & Individuals ~65% created in Trends 2008-2010* Based on 75 identified websites (non exhaustive, mostly from Western Europe and USA) 8 8 Idealist Axa Atout Coeur Sparked Koeo Jagipourlanature VolunteerMatch WiserEarth Everywun Jumo Care2 Fundraising portals / 33needs Charity Charity JustGiving event pages Causes (facebook) ActofGood Shop/ browse CauseOn NetworkForGood bringlight aiderdonner MailforGood for a cause Global Giving betterplace Endorseforacause eBayGivingWorks Izi-collect Olozim Socialvest.us VeoSearch BVS&A SASIX Startupschool P2P micro- Social Social Babyloan Kiva MyC4 Xetic credit entrepre- entrepre- Wokai Dhanax Microplace Energyincommon neurship neurship RangDe Despite an early start, we don’t Despite an early start, we don’t MissionMarkets see strong development trends in see strong development trends in Social entrepreneurship Social entrepreneurship DreamShake Friendsclear FundingCircle Entrepre- Entrepre- Fairplace Cofundit neurship GrowVC neurship Private investment Wiseed Profounder / community investment CrowaboutNow Shareposts Crowdcube / investment club MicroVentures MySpace Babeldoor Invested.in Crowdfunding Kickstarter Kisskissbankbank Ulule MyFootbalClub IndieGogo Creativity PledgeMusic RocketHub Pozible Creativity Fansnextdoor Flattr & & Individuals Individuals RateSetter Quakle Zopa Prosper LendingClub P2P consumer PretdUnion Yes-Secure credit Sellaband MyMajorCompany CatwalkGenius* Includes Jan & Feb 2011 Help Follow Donate Lend Invest finance + social business + web 2.0 8

Still, 9 of the top 10 websites were created before 2007 and #1 &2 were created in the early 2000’sTop 10 websites Charity Entrepreneurship (incl. Social) Creativity and Individuals #1 JustGiving: €100M /y #7 Kiva: €29M /y #3 LendingClub: €100M /y o Fundraising event pages o €146M since 2005 o €169M since 2007 o €840M since 2000 o 260,000 projects funded o 22,000 projects funded #2 Network for Good*: €100M /y #9 Funding Circle: €11M /y #4 Prosper: €100M /y o Donations mgmt tools/ portal o €11M since 2010 o €168M since 2006 o €372M since 2001 o 34,000 projects funded #5 EbayGivingWorks: €38M /y #6 Zopa: €70M /y o Shop for a cause o €120M since 2005 o €154M since 2007 o 20,000 projects funded #10 Causes (facebook): €8M /y None of Kiva’s followers could None of Kiva’s followers could #8 KickStarter: €19M /y o Charity social networks replicate its success replicate its success o €29M since 2009 (closest follower is 10 x smaller) (closest follower is 10 x smaller) o €23M since 2007 o 6,500 projects funded o 140M members No significant alternative to P2P No significant alternative to P2P micro-credit was invented social micro-credit was invented social business business Lending website dominate this Lending website dominate this Half of top 10 websites are donation Half of top 10 websites are donation category; Lending Club & Prosper category; Lending Club & Prosper models, in the charity category models, in the charity category Funding Circle is a recent lending Funding Circle is a recent lending actually make 10-15% of loans to actually make 10-15% of loans to website, focusing on business loans website, focusing on business loans entrepreneurs (i.e. More than Funding entrepreneurs (i.e. More than Funding Circle) Circle) Recently launched KickStarter is Recently launched KickStarter is emerging quickly emerging quickly What new models to accelerate the funding and development of Social Business? Which existing models can be replicated / adapted to address Social Business funding needs?* Network for Good manages fundraising transactions; funds raised are a consolidation of funds actually raised by charity websites.finance + social business + web 2.0 9

To fill the gap in Social Business fundraising, the selectedmodel will need to address specific challengesChallenges for Social business fundraising Potential paths for improvement • Most funding opportunities available on platforms are • Leverage existing local structures withLimitations located in emerging countries and are not eligible to tax tax exempt status to fund projectsto tax exemptions abroadexemptions • There is no organization similar to Red Cross with local • Opportunity to build an international offices that are granted tax exempt status network of local structures • Lack of understanding of what Social Business is • Educate on “impact investment” andLack of • High share of voice of charities: strong communication “social return” as an objective andvisibility means and fundraising strategies, with clearly stated benefit, not just a selection criteria. impacts • Increase trust of potential investors in • Very diverse forms of businesses/ projects, from small and the relevance of projects and in the useComplexity informal individual entrepreneurship (e.g. in need for additional of funds, potentially through a trusted livestock) to larger businesses (e.g. aiming at investing in new non-profit organization, or a certification machines or facilities) of the project selection process. • Communicate on exemplary successes, • Lack of illustrative successes (e.g. Public Enemy by Sellaband) promote social impacts around andLack of • Difficulty for entrepreneurs to explain and promote their beyond the project itself.appeal? need and the benefits from collected funds (limited access • Help each entrepreneurs build trust and to technology) envy on their name Beyond the type of model, the communication and marketing approach will be key to develop fundraising for Social Businessfinance + social business + web 2.0 11

Most high performers differentiate themselves with innovativecommunication and marketing approaches to attract investorsGood practicesHigh performers(Donate) • Leveraging communities (family / friends / co-workers) is very powerful and allows to defer marketing costs toJust Giving your best supporters,KickStarter o They directly mobilize their networksCauses (facebook app) o It increases trust in the cause/ project • Kickstarter (and copycats) opens new ways to address the new generation of funders (ability to raise funds with an appealing approach and with projects in connection with personal interests)(Lend) • Sourcing projects is important to maintain funders’ interest (a large number of projects allows to segmentKiva funding opportunities and better address funders expectations) • ... but proper qualification is key: Kiva leverages local partners, which are rated as wellNB: all other models have alimited international potential • Besides, this network of partners is necessary to scale up the model.because they rely on localcredit licences (or localagreements with banks)(Invest) • MMC (see Profounder is entrepreneurship) built a model to share success (revenues or ‘net revenues’) withMyMajorCompany less legal/ financial/ compliance constraintsGrowVC • GrowVC offers an “Investment club” approach (1 common fund with democratic allocation process), with anCrowdCube innovative profit sharing mechanism, linking funders dividends to individual votes. • CrowdCube is the first example of fully online marketplace open to non accredited investors; they chose a ‘crowdfunding’ approach (website similar to Kickstarter) to attract investors Most of these approaches can apply to all types of funding modelfinance + social business + web 2.0 12

All types of models can apply to Social Business, depending onthe amount of the investment, its horizon and the expected ROIAddressable types of projectsModels Pros Cons Fit with Social business projectsDonate • Untapped in countries such as France • Sustainability – reliance on economic • Adapted to very long term projects/ with no – huge potential trends return / early development starter • Relevant to least advanced projects • Reduces value of fund provided – • Opportunity to rely on donations to invest in or individuals most in need: lower lack of incentive/ accountability shared infrastructures benefiting to social pressure • Does not induce changes (relief only) businesses “dependency” – inequality • Lack of returnLend • Incentive to build for the future • Risk on pay back for both the • Addresses only projects with a return (or • Attractive (reversible donation) supporter & entrepreneur at least payback) within 12-36 months • Circulation of money – multiplication • Charge of interests implies short and effect medium term investments only (risk/ • Lower reliance on economic trends cost too high beyond 3 years) (effects on new funds collection rather • Costs of credit scoring than loans stock)Invest • Attractive (profit) • Profits out of the country (less local • Addresses only projects with a return • Ability / potential to raise more money impact) within 12-36 months and beyond per project • Illiquidity (for the investor) • Amounts raised should be higher to • Lower/ positive reliance on economic • Due diligence and administrative absorb costs of collection and admin/ trends (especially if low liquidity) costs mgmt costs • Governance shared with funders: risk to impact the project DNA/ weaken the projectNB: The choice of a model also strongly depends on the definition of an Investment Philosophy (i.e. the overall set of principles or strategies that guide the investor)finance + social business + web 2.0 13

While donation and lending models allow to fund small to mid- sized projects, only investment models allow to fund larger projects (but never as large as d.c projects) Fundraising capacities 25,000 Max (variable) Sample of 40 websites Prosper NetworkForGood €100M - JustGiving Funds raised Most P2P micro-credit Most P2P micro-credit models allow to collect models allow to collect LendingClub per year limited funds per project Zopa A few (recent) private A few (recent) private limited funds per project investment platforms, (€300-2,000) (€300-2,000) investment platforms, reserved to accredited reserved to accredited eBayGivingWorks investors, allow to fund investors, allow to fund Kiva larger projects larger projects Kickstarter It also includes MicroVentures It also includes MicroVentures or Shareposts or Shareposts €10M - RateSetter FundingCircle Causes (facebook) P2P consumer credit is very P2P consumer credit is very popular and allows to raise €5- popular and allows to raise €5- danone.communities 8,000 8,000 MyC4 Global Giving MissionMarkets* betterplace GrowVC Izi-collect aiderdonner MyMajorCompany €1M - Wiseed Amounts raised Amounts raised Babyloan include annual include annual membership fees membership fees IndieGogo Yes-Secure SASIX Sellaband MyFootballClub Ulule RocketHub In most countries, Donate Kisskissbankbank Profounder Community investment Community investment private placement is Lend €0.1M - PledgeMusic (including ‘investment-like (including ‘investment-like limited: it must be Wokai models’ such as MMC) Babeldoor Pozible models’ such as MMC) public beyond Invest Crowdfunding models Crowdfunding models models allow to raise €25- models allow to raise €25- allow to fund €2-5,000- 100,000 per project €100,000 in France, it allow to fund €2-5,000- 100,000 per project Charity projects projects It also includes Crowdcube It also includes Crowdcube is reserved to VeoSearch accredited investors Social Entrepreneurship Xetic Fansnextdoor above $1M and must Flattr Energyincommon be public beyond Friendsclear Entrepreneurship MailforGood Olozim $5M in the USA Creativity and Individuals 0 1,000 3,000 10,000 30,000 100,000 300,000 1,000,000* MissionMarkets raised equity for 2 social enterprises (Feb 2011): Lumni, a fund that invest in the education of diversified pools of Funds raised per project students, raised $50,000. HotFrog, an online media portal that has yet to launch, raised $25,000 (per year for causes) finance + social business + web 2.0 14

Given average contributions per supporters, a project needs toattract 24 times more donators or 4 times more lenders thaninvestors to be fundedFundraising capacitiesContribution per supporter Estimate sources €0.5 – browse/ shop for a cause Olozim ~€50 Ulule, Babeldoor,Donate €40-70 euros – crowdfunding Kickstarter Aiderdonner €30-100 – causes fund raising Networkforgood Avon Walk* x24 €50-170 – micro credit Xetic, Babyloan, Kiva ~€300 Prosper, RateSetterLend €200 – consumer credit x4 €600 – business credit FriendsClear €40 euros – community investment/ Creativity and Individuals MyMajorCompany ~€1,200 Wiseed (Regioneo), €400-700 euros – community investment/ Business ProfounderInvest €2,000 euros – investment club GrowVC (accredited investors) Mission markets >€50k euros – Private equity (accredited investors, min. 50k)* Not P2P Internet fundraising finance + social business + web 2.0 15

In the investment model, the funded project should yield returnof ~20% to cover collection costs, vs. only ~5% in loans and noreturn required in donationsCosts of collectionas a % of funds collected 1-2% -payment mgmt 1-2% - payment mgmt 1-2% - payment mgmt 1-2% - payment mgmt 3-4% - platform operating costs 1% - bank/ licence fee 4-6% - platform operating costs 2-4% - platform operating costs 4-8% - mgmt fee (fixed costs) 10-15% - platform operating costs 95% 94% 95% 80% Donations Micro-credit P2P Investment Loans Loans €10-€25,000 €300-€2,000 €5,000-€35,000 €25,000-€5M /project /project /project /project• Payment management costs vary • Kiva reduces payment • In most cases, platforms rely on • Management fees include the depending on the payment means management cost to zero thanks to banks, which charge ~1-2%; administration of the investment (from ~1% with credit card to ~2% a special agreement with Paypal alternatively, some players obtain structure; it is very dependent on the with Paypal) which bears the cost of Paypal and their own credit licence to reduce investment size• Platform funding costs include credit card transactions. that cost • Operating costs cover due diligence website management, but also • Amounts charged by platforms to • Operating costs % is limited thanks and communication/ marketing costs communication and marketing costs, fund their operating costs reach to higher average loan size and with screening of projects (especially for ~5% (due to the low amounts raised attractive interest rates (for lenders crowdfunding platforms) per collection) and for borrowers rejected by banks)Notes:•Fiscal positive impacts are not included, as they are actually already integrated in funders’ expectations•Depending on the website, costs of collection can be carried either by the entrepreneur (not 100% of funds transferred, or interestscharged), or by the funder (e.g. via suggested or minimum donation to the platform)finance + social business + web 2.0 16

Key outcomes• There is no single answer to address Social Business funding needs and the diversity of models (especially from a marketing perspective) is key to maximize the flows of funding to Social Business: donation, lending and investment models may fit different projects, depending of their size, maturity, entrepreneur objectives... but also to the funder “investment philosophy”: principles, return expectation...• New models are being invented to allow investments in Social Business or more generally in Entrepreneurs’ projects, but financial, fiscal and legal constraints remain strong (limitations in total investment, to accredited investors, to local entrepreneurs and/ or investors...); Social stock exchange projects are complex and still require time to go live (existing such platforms are actually donations with social returns only)• Evolutions in regulations may be required to truly accelerate the emergence of P2P funding models, for instance exempt securities offerings with €100 maximum per investor from registration, or soften rules for tax exemptions for Social Business• While diversity is key, structuring of the sector could help social entrepreneurs make their voice(s) heard, support cross- border funding, or maybe provide common and cheaper financial means (e.g. payment means)• Besides, there is a need to educate and inform on Social business on the funders’ side, to raise awareness and sensitivity to this cause. Although initiatives already exist (social entrepreneurs associations, general information websites...) and awareness will actually raise progressively word of mouth spreads the concept.• This study is a first step in a larger process. It helped us design one picture of the financial landscape for Social Business and evaluate the state-of-the-art of Internet technologies in 2011. We hope it could serve other organizations. We are very open for new collaborations if others want to share ideas and concrete actions on how to finance social businesses through the web.finance + social business + web 2.0 18

HelpExisting solutions & trends Website Creation Language Members SpecificitiesCharitiesVolunteers Idealist 1995 En, Sp, Ca 1M Allows volunteers to support non profits with skills on local andrecruitment Volunteermatch 1998 En 2.5M national as well as international levels Sparked 2008 En 150,000 Using books and fairs to create awareness jagispourlanature.org 2006 Fr n.a. Connects volunteers and organization to offer environmental volunteering possibilities in France (1h up to >6 months) Axa Atout Coeur 2009 Fr 15,000 Allows AXA Group employees to volunteer to support events organized by associations (Axa Atout Coeur created in 1991)Tools for Koeo 2008 Fr n.a. Platform for charities and companies to offer and receivecalls for donation of professional skillsvolunteersEntrepreneursStartup StartupSchool 2009 En 21,000 A marketplace to schedule meetings, talks and classes as wellsupport entrepreneurs as a virtual Classroom to meet live and interact via chatting, audio and video conferences in order to share, screensCreativity and IndividualsCalls for Dreamshake 2008 Fr 15,000 Market place to connect dreams & projects to needed/ proposedvolunteers skills• There is no identified example in social business of website facilitating the provision of skills by individuals to projects.• Examples go from a consolidation of calls for help from non-profit organizations (Axaatoutcoeur), to an offering of education by a community of volunteers in a virtual academy (startupscholl as an example of SuperCoolSchool) and to a market place intermediating entrepreneurs with needs and individuals with skills (dreamshake).finance + social business + web 2.0 20

HelpFunctional coverage T1 Supporters T2 1 •• Supporters post their profile and propose their skills to project owners, or respond to projects needs Supporters post their profile and propose their skills to project owners, or respond to projects needs posted on the platform posted on the platform 1 •• They offer a volunteer pool including professional skills, time, in kind donations to either the They offer a volunteer pool including professional skills, time, in kind donations to either the platform or to a specific project (P2P) platform or to a specific project (P2P) 3 Platform •• The platform communicates the need of volunteers, providing the possibility to find adequate The platform communicates the need of volunteers, providing the possibility to find adequate volunteering (e.g. Sparked Micro volunteering for people with a time constraints) volunteering (e.g. Sparked Micro volunteering for people with a time constraints) 2 Projects 2 •• The platforms provides a tool for project owners to publish their project and define their needs, The platforms provides a tool for project owners to publish their project and define their needs, facilitating projects and nonprofits with a communication channel and systemic ways to find these facilitating projects and nonprofits with a communication channel and systemic ways to find these volunteers more effectively volunteers more effectively 3 •• Supporters actually provide their time or services Supporters actually provide their time or servicesfinance + social business + web 2.0 21

HelpEvaluation • Helps create a sustainable community of supporters around a project Fit with • Adapted to project launch phase (e.g. review business plan, design website, translate documents), Social rather than recurring activities (contrary to charities) Business Ability to • Constraints to match volunteers and projects across borders; all identified platforms are national (except reach startupschool) or even local supporters • Platforms allow projects and supporters to post time/ skill needs or proposals • Databases can be searched to facilitate matching Technical capabilities • Koeo offers a white label platform (in french) to companies, giving the opportunity to their employees to support an organization, organizations in a selected domain, or all organizations enrolled in Koeo (environment, education...)finance + social business + web 2.0 22

FollowExisting solutions & trends Model Creation Language Members SpecificitiesCharitiesThemed social Care2 1998 En 15M 100% of administrative costs ad financed, credits system, earned vianetworks volunteering, petition…, and distributed on favourite causes (funded by corporate sponsors) WiserEarth 2007 En, Fr, Spa, Port 45,000 NGO directory of more than 112,000 organizations worldwide Everywun 2008 En n/a Allows to spend money by using virtual credits – website down since end of 2009 Jumo 2010 En n/a Online network service “for the social sector” closely linked to FacebookCreativity and IndividualsThemed social MySpace 2003 15 languages 100M Recommendations engine, recommending users profiles they might likenetworks based on their browsing history• Models in this category are themed social networks, allowing to follow your favourite causes and NGOs and get in touch with people supporting the same causes; there is no example in social business• Rather than giving money, some of them (Care2, Everywun) provide opportunities to act, and thus earn and redistribute credits to causes (funded by advertising)• Growth parallel with Facebook (creation in 2004 – boomed in 2005-6…)• Although the platforms are mainly focused on causes, there is a huge leverage of network members to friends on the network, as most of them allow Facebook connect and publish activity on the profilefinance + social business + web 2.0 23

FollowFunctional coverage T1 Supporters 1 •• Allows organisations to have a presence on the platform to more easily connect to supporters Allows organisations to have a presence on the platform to more easily connect to supporters •• They can develop networks of fellow concerned supporters or with organizations They can develop networks of fellow concerned supporters or with organizations 2 Platform 1 2 •• Supporters connect to the social network to keep track of the causes or interests they care about Supporters connect to the social network to keep track of the causes or interests they care about •• As a result of the platform, supporters and projects can be directly connected (in some cases you As a result of the platform, supporters and projects can be directly connected (in some cases you Projects can give donations via the platform (e.g. Jumo) can give donations via the platform (e.g. Jumo)finance + social business + web 2.0 24

FollowEvaluation • Allows to lead a network of ambassadors/ promoters of a project, to find new clients/ contributors/ funders (cf. Regioneo example) Fit with Social Business • Follow model better suited to large causes, having the ability to gather tens/ hundreds of followers (social business not being a cause itself) • Not much benefits at a project level (for most projects) Ability to • No limitations to internationalization reach supporters • Can be a gateway to future donations/ financial funding by followers Technical • Allows to regularly publish information to a targeted audience (which opted in) capabilitiesfinance + social business + web 2.0 25

DonateExisting solutions & trends (1/2) Model Creation Language Funds per Specificities year / projectCharitiesThemed Causes (facebook) 2007 En €8M / €290 Themed social networks allowing to donate to causes (notsocial Act of Good 2008 En n/a specific projects)networksFundraising Globalgiving 2002 En €2.9M / €8,500 Fundraising portals and marketing services to nonprofits andportals Betterplace 2006 En, Ge €2.5M / €3,700 to provide donors with the information they need to make Bringlight 2007 En n/a informed donationsFundraising Just giving 2000 En €105M / n/a Provide the tools for nonprofits to raise funds onlineevent pages Aiderdonner 2008 En, Ge, Fr, Du €1-2M / €10-20kDonations Network for Good 2001 En €100M€ / €6,200 Tools consolidating the flows from multiple websitesmgmt tools Izicollecte 2008 Fr €1.2M / n/aShop for a EbayGivingWorks 2003 En €38M / €8,300 Allows users donate to nonprofit organizations when they buycause SocialVest 2009 En n/a and sell through an e-commerce site Endorse for a cause 2010 En n/a CauseOn 2010 En n/aBrowse for a Veosearch 2007 En €60k / €600-4,000 Provide direct marketing services (mail newsletters, ads oncause Mailforgood 2009 Fr €10k / €550 search sites) to collect funds later provided to charity as micro Olozim 2008 En €20k / €4,000 donationsSocial business BVS&A 2003 Port n/a Promotes an engaged way of giving charity-“investments” SASIX 2004 En €300k / €23k (donations) with pure social return• Donation aroused the creation of many creative models for charities and personal projects• SASIX and BVS&A are the only donation model in Social businessfinance + social business + web 2.0 26

DonateExisting solutions & trends (2/2) Model Creation Language Funds per Specificities year / projectCreativity and IndividualsGeneral crowd- MyFootbalClub 2007 En €0.5M / €0.5M P2P platforms for supporters to connects with projects,funding Indiegogo 2008 En €0.4M / €2,500 individuals, and artists to offer all-or-nothing funding via a Kickstarter 2009 En €19M / €4,500 crowd of donations. Babeldoor 2009 Fr €110k / €2,000 Most platforms require a reward for supporters. Rockethub 2010 Fr, En €200k / €2,400 Ulule 2010 Fr €180k / €2,000 Pozible (prev. Fundbreak) 2010 En (Aus) €110k / €2,600 Kisskissbankbank 2010 Fr €190k / €6,200 Invested.in 2010 En n/aMusic crowd- Pledge music 2009 En €200k / €5,400funding Fansnextdoor 2010 Fr, En €30k / €4,400Micro-funding Flattr 2010 En n/a / €1-10 Provides a flat-rate platform to pay for online content where you “flattr” different projectsfinance + social business + web 2.0 27

DonateFunctional coverage T1 Supporters T2 1 •• On most models, supporters give small amounts or pre-assigned funds to the platform; supporters On most models, supporters give small amounts or pre-assigned funds to the platform; supporters provide a network for donations where they can donate micro-donations through endorsements or provide a network for donations where they can donate micro-donations through endorsements or 1 4 their paychecks, or select one or several projects and donate a portion of needed funds their paychecks, or select one or several projects and donate a portion of needed funds 2 Platform 5 2 •• Via the platforms, supporters give funds to causes, projects, nonprofits and individuals; provide the Via the platforms, supporters give funds to causes, projects, nonprofits and individuals; provide the 3 critical mass necessary to fund large projects through donations critical mass necessary to fund large projects through donations •• Raise awareness for projects Raise awareness for projects Projects 3 •• Platform allocates and transfers the designated funds to projects once fully funded; raises awareness for projects Platform allocates and transfers the designated funds to projects once fully funded; raises awareness for projects •• Donation management platforms offer a support function via collecting money or managing databases Donation management platforms offer a support function via collecting money or managing databases 4 •• Via the platforms, projects can reach their base with information and updates (events, projects plans, updates, or a general Via the platforms, projects can reach their base with information and updates (events, projects plans, updates, or a general description of the cause) description of the cause) •• In Social Stock Exchanges, compliance with reporting obligations is a requirement In Social Stock Exchanges, compliance with reporting obligations is a requirement 5 •• Some projects provide non financial rewards Some projects provide non financial rewardsfinance + social business + web 2.0 28

DonateEvaluation • Relevant to least advanced projects or individuals most in need: lower pressure • Adapted to very long term projects/ with no return / early development starter Fit with • Opportunity to rely on donations to invest in shared infrastructures benefiting to social businesses Social Business • Reduces value of fund provided – lack of incentive/ accountability • Does not induce changes (relief only) “dependency” Ability to • No limitations to internationalization reach supporters • Value proposition is clear and well known; there is a significant potential in countries such as France • Requires the platform to implement a payment solution: “contrat VAD” with a bank (financial solution) + Technical Electronic Payment Term (technical solution e.g. Atos or Paybox); paypal provides both solutions in 1 capabilities (with higher transaction costs)finance + social business + web 2.0 29

LendExisting solutions & trends Model Creation Language Funds per year Specificities / projectSocial BusinessP2P micro credit Kiva 2005 En €29M / €290 Providing P2Pwith no interests MyC4 2006 En €3M / €2,000 No interest rates RangDe 2006 En, Dk n/a Working together with MFIs Dhanax 2007 En n/a Wokai 2007 En, Ch €290k / €450 Babyloan 2008 En, Fr €700k / €300 Xetic 2010 En, Fr €40k / €330 Energyincommon 2010 En €20k / €70... with interest rates Microplace 2006 En n/a P2P, through MFIsEntrepreneursP2P loans Friendsclear Family 2008 Fr €200k / €1,500 P2P Lending to Entrepreneurs including interest model Friendsclear Pro 2010 Fr €300k / €10k Funding Circle 2010 En €11M / €35,400 Fairplace 2010 Br n/a Cofundit 2010 En n/a / €200,000Creativity and IndividualsP2P consumer Zopa 2005 En €70M / €6,000 Personal creditsto fund creative ideas, individuals, businesses orcredit Prosper 2006 En €100M / €5,000 projects Lending Club 2007 En €100M / €7,700 Quakle 2008 En n/a Rate Setter 2010 En €7M / €5,200 Yes-Secure 2010 Fr €400k / n/a Prêt d’Union not started n/a • There are a many websites offering P2P loans to entrepreneurs, with very similar models; interest rate vary widely: from zero in social business (Kiva, Babyloan… with the exception of microplace offering up to 3% to the lender) to 4-8% (5-13% for the borrower) • Models in social business partner with MFIs, allowing them to collect and lend worldwide. • Other models partner with banks or obtain their own credit license (e.g. zopa in the UK); they collect and lend only in countries where licensed; in France, pretd’Union intends to receive its own license. In such models, lenders and borrowers must be in the same country.finance + social business + web 2.0 30

LendFunctional coverage T1 Supporters T2 1 •• Supporters access a list of projects with funding needs; Interest rates are dependent on credit Supporters access a list of projects with funding needs; Interest rates are dependent on credit ratings, defined by MFIs or regular rating companies; Some use hard information while others use ratings, defined by MFIs or regular rating companies; Some use hard information while others use 1 6 soft information for ratings; for most P2P lending in social business, loans are interest-free soft information for ratings; for most P2P lending in social business, loans are interest-free •• They can select one or several projects, and lend a portion of needed funds They can select one or several projects, and lend a portion of needed funds 2 Platform 4 •• The funds are collected by the platform The funds are collected by the platform 3 5 2 •• Platforms funding businesses allow supporters to exchange with borrowers to enable supporters to Platforms funding businesses allow supporters to exchange with borrowers to enable supporters to Projects challenge the business plan, offer advice and assess the risk challenge the business plan, offer advice and assess the risk 3 •• In P2P micro-credit to social businesses: When a project is fully funded, the platform transfers the money to a MFI on the ground In P2P micro-credit to social businesses: When a project is fully funded, the platform transfers the money to a MFI on the ground (usually an interest-free loan), which actually screens borrowers, provides the loan with interests and collect the money back (usually an interest-free loan), which actually screens borrowers, provides the loan with interests and collect the money back Published projects are actually already funded by the MFI: the lender backs-up the MFI, who can thus grant a new loan. Published projects are actually already funded by the MFI: the lender backs-up the MFI, who can thus grant a new loan. •• In P2P loans & consumer credit: loans transferred immediately once approved; some platforms guarantee loans In P2P loans & consumer credit: loans transferred immediately once approved; some platforms guarantee loans 4 •• Information flow through the platform directly from projects to supporters includes project updates and business plans Information flow through the platform directly from projects to supporters includes project updates and business plans 5 •• Reimbursement of funds and possibly interests from the specific individuals or projects to platform, platform keeps a portion to Reimbursement of funds and possibly interests from the specific individuals or projects to platform, platform keeps a portion to finance the platform finance the platform 6 •• Reimbursement to lenders, gives project evaluations based on hard or soft facts; Provides an alternative to donations through Reimbursement to lenders, gives project evaluations based on hard or soft facts; Provides an alternative to donations through providing access to money instead of pure giving providing access to money instead of pure givingfinance + social business + web 2.0 31

LendEvaluation • Addresses only projects with a return (or at least payback) within 12-36 months • Incentive to build for the future Fit with • Circulation of money – multiplication effect Social Business • Risk on pay back for both the supporter & entrepreneur • Charge of interests implies short and medium term investments only (risk/ cost too high beyond 3 years) • Comparable to a reversible donation Ability to • The P2P micro credit model is fully international, on both lender and borrower sides reach • On the contrary, the standard P2P loan model, based on a partnership with a bank or on the ownership supporters of a credit license, allows loans only with borrowers and lenders in the same country (in the USA, licenses are even granted by state only) • Besides payment capabilities (cf donation model), it requires additional capabilities: • Credit rating: can be conducted by MFI or by lenders themselves (by allowing them to exchange information, ask questions to borrowers before the project is funded); in most cases, the platform Technical performs this activity capabilities • Manage payment schedules and collect reimbursements • Communication between lenders and borrowers along the project execution • Reporting on default rates, project successes and impacts...finance + social business + web 2.0 32

InvestExisting solutions & trends Model Creation Language Funds per Specificities year / projectCharity projectsPrivate market places 33needs 2011 En n/a Enables to invest, make a social impact, and earn financial rewardsSocial BusinessPrivate market places MissionMarkets 2010 En €2M / €2-500M Many missions united in one market, facilitates focused investmentEntrepreneursCommunity Wiseed 2009 Fr 1.0M€/0. 33M€ Allows funders to invest in ventures and get a share of profitsinvestment CrowdCube 2010 En n.a. MicroVentures 2009 En n.a. CrowdaboutNow 2010 Dutch n.a.“Investment club” GrowVC 2009 En 9.0M€/0.04M€ Platform for seed funding for startups, community based (social network) , crowdfundingCommunity Profounder 2010 En 0.2M€/ 0.2M€ Allows funders to invest and get a share of revenuesinvestmentCreativity and IndividualsMusic community inv. MyMajorCompany 2007 En, Fr 1.2M€/n.a. Platform for artists to use a limited timeframe to mobilize Sellaband 2006 En 0.33M€/0.09M€ sponsors, patrons, and supportersFashion community CatWalkGenius 2010 En n.a. Online investment portal allowing interested people to getinv. involved in fashion; concept of crowdfunding to the fashion • Only a few online platforms allow to invest and become a shareholder of a specific business (e.g. Wiseed), and also trade shares on a private secondary market (Mission markets); despite many projects, no regulated social stock exchange has been launched yet. • As an alternative, GrowVC is similar to an investment club, allowing to invest in a fund, recommend allocation on startups and receive a share of return based on recommended startups • Other models allow to financially support an artist, designer , sport club or a friend and be eligible to a share of net revenues.finance + social business + web 2.0 33

InvestFunctional coverage T1 Supporters T2 1 •• Supporters access a list of projects with investment opportunities; return is dependent on success Supporters access a list of projects with investment opportunities; return is dependent on success •• They can select one or several start-up projects, and invest a portion of needed funds, or you can They can select one or several start-up projects, and invest a portion of needed funds, or you can 1 6 invest in a specific fund which in turn is allocated once the funding target is achieved invest in a specific fund which in turn is allocated once the funding target is achieved •• The funds are collected by the platform The funds are collected by the platform 2 Platform 4 3 5 2 •• Via the platforms, supporters exchange with companies to give funds, challenge the business plan, Via the platforms, supporters exchange with companies to give funds, challenge the business plan, Projects help market the product through social networks, offer advice, assess the risk help market the product through social networks, offer advice, assess the risk 3 •• Most platforms transfer the funds once fully funded and some platforms invest themselves in kind (e.g. MyMajorCompany) Most platforms transfer the funds once fully funded and some platforms invest themselves in kind (e.g. MyMajorCompany) •• Some offer a support function (e.g. MMC acts as a record label) Some offer a support function (e.g. MMC acts as a record label) 4 •• Information flow through the platform directly from projects to supporters includes project updates, business plans, and marketing Information flow through the platform directly from projects to supporters includes project updates, business plans, and marketing materials, in addition to the return on investment materials, in addition to the return on investment 5 •• Provide source of projects and income stream for platform based on platform financing criteria; return of investment and possible Provide source of projects and income stream for platform based on platform financing criteria; return of investment and possible revenue-sharing from the specific individuals or projects to platform; platform keeps a portion to finance the platform revenue-sharing from the specific individuals or projects to platform; platform keeps a portion to finance the platform 6 •• Reimbursement to investors, gives project evaluations based on hard or soft facts; provides access to new type of investments Reimbursement to investors, gives project evaluations based on hard or soft facts; provides access to new type of investments •• Expands the venture capital world into a giant social network Expands the venture capital world into a giant social network •• Democratizes access to investment Democratizes access to investmentfinance + social business + web 2.0 34

InvestEvaluation • Addresses only projects with a return within 12-36 months and beyond Fit with • Amounts raised should be higher to absorb costs of collection and admin/ mgmt costs Social Business • Profits out of the country (less local impact) • Besides Creativity and Individuals projects, investments are usually reserved to accredited investors; Ability to CrowdCube investments are not restricted, but they are open only to UK residents reach supporters • This type of model in Social Business is very recent and maturity is low; liquidity seems difficult to ensure • Capabilities are similar to lending models Technical • In addition, it requires: capabilities • The ability (methodology) to value shares owned to allow investors exit • The ability to track and report projects financialsfinance + social business + web 2.0 35

Detailed analysis of websites Charities & charity projects Social entrepreneurs Entrepreneurs Artistic/ personal projects Help Follow Donate Lend Invest Analysed websites in boldfinance + social business + web 2.0 37

Help – Charity AXA atout Cœur Activity and Key Figures Comments • Offers three activities: mobilization of • Using employees volunteering & skills, volunteers and skills; 3,500 Corporate Citizenship in order to volunteers with IT, Accounting, etc. skills not only increase the image of to support >250 charities (only France) the company but the raise the • Approx. 300 actions supported (e.g. employees‘ motivation and selfIdentity collection of clothes, food..., garage identification level with the sales, manual/ admin help,...) company• Founded in 1991 by the Axa Group, • In 2008, 1.5 million euros budget as the website was launched in 2009 financial support of field activities by• Available only in French volunteers (as equivalent working hours)• Based in France, 55 correspondents AXA sites in France Volunteer Match Activity and Key Figures Comments • Platform to connect people who want to • Platform received recognition by volunteer on a local and national level Obama • Addresses NPOs, Corporations and Volunteers • Revenues $3mIdentity • #1 search result for “volunteer” on Google and Yahoo! - 850,000 online monthly• Founded by Four MBA’s Mark visitors Benning, Joanne Ernst, Steve • 100,000,000+ pages served in 2008 Glikbarg, and Cindy Shove • 73,500+ participating nonprofits & 112• Founded in 1998 corporate clients • 2.5 million registered members• Available only in English • 4.5 million volunteer referrals since 1998• Based in California, USAfinance + social business + web 2.0 38

Help – Charity Koeo Activity and Key Figures Comments • Platform for companies to set up their • n/a private portal for employees to volunteer to projects for 1 association, associations in a specific field or all associations enrolled with KoeoIdentity • Search function to find specific needs, e.g. accounting, tax advisory,• Founded in 2008 by the Humaneo communication consulting• Available only in French• Based in France Idealist Activity and Key Figures Comments • Offers >10K Volonteer and >3k internship • Idealist created a wide opportunities databasis of NPO, community • 150.000 members, 60.000 organizations, services, social enterprises, etc. personal data, etc. • Receive money though:Identity - Individual donations, US based firms• Founded in 1995 by Ami Dar pay a fee to become listed• Available in English, Spanish, - Registration fees for fair exhibition French - Foundation support through grants• Based in New York, USfinance + social business + web 2.0 39

Help – Charity J’agis pour la nature Activity and Key Figures Comments • Online Platform for Volunteers and • n/a organization to find and offer environmental volunteering possibilities in France (between 1h up to >6 months) • Currently between 100-150 ProjectsIdentity offered online• Founded in 2006 by Nicolas Hulot Foundation and Association A pas du loup• Available only in French• Based in France Sparked Activity and Key Figures Comments • Micro volunteerism marketplace • Emphasizing on people’s need • 5 -15 min time slots to contribute without sacrificing • 150,000 people too much (only 5-15min) • Start with gratis inscription to • Platform where nonprofit user’s needs can be communicated and responded by create a critical mass, but willIdentity introduce a registration fee for Volunteers corporations• Co-Founded in 2008 by CTO Ben • Worldwide network for charities/people Rigby and CEO Jacob Colker looking for a volunteer with right skills to• Available in English answer requests• Based in San Francisco, US • E.g. Translations to practice languages, design critiques during lunch break, questions about how to dig a well etcfinance + social business + web 2.0 40

Help – Entrepreneurs StartupSchool Activity and Key Figures Comments • A marketplace to request and schedule • Cloud computing and Web 3.0 meetings, talks and classes to meet customer’s needs • A virtual Classroom to meet live and interact via chatting, audio and video conferences in order to share, screensIdentity • > 15,000 hours of startup online education• Founded in 2009 by Bjoern Lasse Herrmann • To > 2,100 entrepreneurs from > 130 countries• English• Based in California, USAfinance + social business + web 2.0 41

Help – Creativity and Individuals Dreamshake Activity and Key Figures Comments • 15,000 members • Offline events support the buzz of the platform with monthly meetings and aperos for their members to network their dreamsIdentity• Founded in 2008 by Francois-Xavier Tanguy and Arnaud Dubois Dash• Social network for dreams and projects to form “Dreamteams” and network• French• Based in France, Belgium and Switzerlandfinance + social business + web 2.0 42

Follow – Charity Jumo Offering • Online network service “for the social sector” • Similar to Causes on Facebook and Global Giving, not primarily about soliciting one-time donations but rather to deepen ties between users and their favorite causes • Tries to build long lasting relationships to causes people care aboutIdentity • Closely linked to Facebook (you post messages on Facebook, use the like• Founded by Facebook co-founder buttons) can attract people from Facebook who are not yet on Jumo Chris Hughes• Launched in November 2010• English (only)• Based in New York, USAActivity and Key Figures Operating Model and Legal Structure• n/a • Donations are processed by “Network for Good”, a nonprofit, donor advised fund. A 4.75% grant is made with each donation transaction • Certain uncertainty about business model (still WIP - raised about $3.5 million dollars from a few individual donors for its establishment)Comments • Jumo plans to cover costs in two ways. They ask for an optional donation when someone does choose to use the platform to give• Using the Facebook login might become a powerful money. but ultimately, the founder hopes to build an outreach tool to list charities and social funding projects across and sponsorship platform that sounds like it will function very different organization much like advertising on Facebookfinance + social business + web 2.0 44

Follow – Charity Care2 Offering • Care2 is a social network website offering information about its members involvement in activism to help connect activists from around the world • The web portal strives to make it easier for everyone to live a healthy, green lifestyle and impact the causes they care about most. • It allows for petitions that any citizen can create and distribute through an onlineIdentity identity• Founded in 1998 by Randy Paynter • "Click-to-Donate Races" to generate donations to charities (from ad sponsors) & Matthew McGlynn • Additional features: job listing (Care2 JobFinder) ; newsletters, blogs, file sharing• Available only in English• HQ in Redwood City, California, US• Managed by the two founders and Marlin Miller as COOActivity and Key Figures Operating Model and Legal Structure• Revenue 5.9 mil USD (2006) • Tries to rely only on “environmentally and socially responsible”• Membership of more than15 million advertising to keep the services free• Employees 56 (2008)• 59,712,715 petition signatures by Feb’11Comments• Covering administrative costs by ads might be welcomed by donators as 100% goes to projectsfinance + social business + web 2.0 45

Follow – Charity WiserEarth Activity and Key Figures Comments • Tool to track the work of non-profits, • Maps and connects NGOs, businesses, governments, groups and might be used as a tool to individuals addressing SD issues contact other NGOs to • Provides web infrastructure to discover, collaborate connect, share, collaborate. • Both Care2 and Wiser EarthIdentity • Community-driven by donations, integrated Facebook and Twitter 501(c)(3) registered nonprofit connectivity as the networks• Founded in April 2007 by Paul rose to prominence organization Hawken • NGO directory of more than 112,000• It went "open source" in 2008 organizations worldwide, over 41,000• Available in English, Spanish, registered members French and Portuguese Everywun Activity and Key Figures Comments • Website is down since mid-2010 • You don’t need to have to spend • EveryWun mission is to inspire people, money but can earn and use businesses and cause organizations to virtual credits (e.g. you get 100 think differently about how they can credits for registering) change the world together.Identity • Allows to embed virtual badges supporting the cause or causes you• Founded by Dan Jacobs champion into your blog or social network• Founded in August 2008 profile• HQ in San Francisco, US• 5 employees• Now closed (probably mid 2010)finance + social business + web 2.0 46

Follow – Creativity and Individuals MySpace Activity and Key Figures Comments • Users: 66 millions • Recommendation engine, • 42,3 million unique visitors each month recommending the users other options according to their tasteIdentity• Founded in 2003 by Chris DeWolfe• Based in the U.S.• Area served: worldwide, 15 languagesfinance + social business + web 2.0 47

Donation – Charity Causes Offering • It is a Facebook application and thus leverages Facebook functionalities • Segmentation: follow and donate • Possibility to give to specific projects (but only 55 projects available) • Focused on aid, not social businessesIdentity • Targeted audience: Individual activists, non-profits, foundations, companies• Founded by Sean Parker and Joe Green• English• Based in the USA, Berkeley and D.C.Activity and Key Figures Operating Model and Legal Structure• 500,000 member created causes • The members are able to leave a tip for causes and network for• 140 million members good when making a donation• $30 million raised for 27 000 non-profits • Donations made through networkforgood.org• 200,000 birthday wishes - Legal responsibility = networkforgood - Meet requirements of IRS • By clicking the donation button, 4.75% of the sum deducted toComments cover transaction costs,• Piggybacking facebook (easy to get attention from own facebook network)• Birthday wishes = good fundraising opportunityfinance + social business + web 2.0 49

Donation – Charity Act of Good Activity and Key Figures Comments • n/a • Causes in a smaller scaleIdentity• Founded by Michael Farah and Davud Ruttenberg• Launched in August 28, 2009• English• Based in the U.Sfinance + social business + web 2.0 50

Donation – Charity betterplace Offering • Segmentation: Direct, p2p, Worldwide • Scope: individuals and local and international aid organizations in need, individuals wanting to help • Focus on aid, not social business • Facilitates money donations, volunteering and donations in kindIdentity - Donations in kind/ volunteering: betterplace directs the inquiry to the person• Founded in 2006 by Till Behnke responsible for the projects i.e. facilitated through direct contact between the• Berlin parties, Betterplace not involved• Languages: english and germanActivity and Key Figures Operating Model and Legal Structure• Number of projects • 100% of the donations forwarded to the projectsBetterplace - 2313 projects open for funding carries all financial transaction fees - 3500 projects have been launched on the site • Costs covered by• 40 000 members (donors) - Private sponsors• Funds raised: 3 500 000 Euro - Companies who are offered CSR services through a subsidiary company; betterplace solutionsComments - Debit and credit cards and PayPal fees• Members of betterplace made responsible for different parts of a project• The ability to contribute with more than money (i.e. donations in kind)• Place to let corporations show off their CSRfinance + social business + web 2.0 51

Donation – Charity BringLight Activity and Key Figures Comments • All donations go through American • n/a Endowment Foundation, a donor advised fund • For- profit organization • Charities pay a 7-10% fee based on theIdentity sum raised• Launched in May 2007 by Melissa • provide fundraising and marketing Dyrdahl and Drew McManus services to nonprofits and to provide donors with the information they need to• English make informed donations• Based in the U.S GlobalGiving Activity and Key Figures Comments • 141,278 donors • n/a • $37,132,068 money raised • 3,704 projects fundedIdentity• Launched in 2009 by Mari Kuraishi and Dennis Whittle• English• Based in the U.S.finance + social business + web 2.0 52

Donation – Charity Just Giving Offering • Provides online fundraising to enable Charities the electronic collection of donations in the UK • Donors / Sponsors: Select a charity/person, make the donation and JG adds gift Aid • Charities: Sign up, communicate to donors, receive donations weekly and GiftIdentity Aid within 25 days• Founded in 2000 by CEO Zarine • Fundraisers: Build Fund Raising page for free, communicate the web address Kharas through Facebook/ Iphone app, receive donations• Available only in English• Based in London, UK• Launched an Iphone app in 2010Activity and Key Figures Operating Model and Legal Structure• >9,000 UK-registered charities and 1.9 million • £15/ month announcement fee fundraising pages for users, collecting over £700 • 5% Commission on donations (using the 25% Gift Aid) million among 12m users • Gift Aid scheme: 25% in tax on every eligible donation by a UK• For instance, JustGiving page of 7-year old Charlie taxpayer. (06.04.2008 – 05.04.2011 extra 3% for UK charities) Simpson raised >£143,000 in 48h for the 2010 Haiti earthquake programme (UNICEF)Comments• Created a donation and fundraising movement using the public sector (gift Scheme)finance + social business + web 2.0 53

Donation – Charity Alvarum Offering (previously Aider Donner) • Provide the tools for NGOs and their key supporters to raise funds with a P2P platform • Organizes its own events as events are important to decide the size of donations, giving opportunities to the clients to raise funds • The Alvarum platform allows each user to become an “ambassador andIdentity collector” for a foundation, taking advantage of the internets ability to link and network via web• Founded by Olivier Fleckinger, Guillaume Desnoes • You can organize events, parties, in memoriams, and challenges to support an event, donate or join an event• Founded in 2008 • Aggregates relevant charity information.• French, English, Dutch • Makes available a tax receipt• Based in France • Targeted to donors and supportersActivity and Key Figures Operating Model and Legal Structure• In its first year 800,000 € collected • Leverage ambassadors support through their personal• Used by 80+ organizations connections • Associations, corporations or event organizers pay for use of platform: 5% of money raisedComments• The alvarum platform can be designed for the specific needs of a project / of an organizationfinance + social business + web 2.0 54

Donation – Charity eBay Giving Works Offering • Bay allows users donate to nonprofit organizations when they buy and sell through the eBay.com/ eBay.co.uk sites • Community Selling: donate 10-100% of their sale price • Direct Selling: Nonprofits can sell their own items no selling fees for nonprofits • eBay uses blue and yellow charity ribbon to communicateIdentity • At PayPal Checkout: $1 (or more) donation are offered• Founded in 1999 as partner charity • eBay/PayPal can give $1 right away without buying/selling of eBay • MissionFish, as independent NPO screens nonprofits to become members and• Available only in English certifies them• Based in the USAActivity and Key Figures Operating Model and Legal Structure• In 2008, through eBay Giving Works/eBay for Charity, • n/a >$150M for good causes raisedComments• Partnership with MissionFish provides evay with a Certification systemfinance + social business + web 2.0 55

Donation – Charity Network for Good Offering • Is a website where users can donate to charities and search for volunteer opportunities • Leading charitable donation system DonateNow (allows to raise money for a Cause on Facebook) • Provides branded fundraising widgetsIdentity • Allowing you to choose from among thousands of volunteer opportunities• Founded in 2001 by AOL, Cisco powered by “VolunteerMatch” Systems and Yahoo! • Non-profits can moreover access tools for fundraising, volunteer recruitment and• Available only in English donor communication• HQ in San Francisco, US• CEO Bill Strathmann; board members from AOL, Yahoo!, eBay...Activity and Key Figures Operating Model and Legal Structure• Merged in 2005 with Groundspring.org • Network for Good is funded by its founding partners• Raised over $472 million in online donations to more • As of June 2003, Network for Good began processing donations than 60,000 different nonprofits with their own transaction processing system , working directly• Matched more than 250,000 volunteers with with Bank of America Network for Good accept donations from thousands of nonprofits international donors• Recognized for “revolutionizing philanthropy” (Forbes) • Fees:Comments - Donors: For donations made to Network for Good one-time donors are asked to make a minimum 5% fee. For recurring• Good marketing: Network for Good links people with donations, a 4.75% grant amount can optionally be added or celebrity philanthropists including Kevin Bacon, Ellen DeGeneres, Robert Duvall deducted. Either way, the donation is tax deductible. - Nonprofits: Supporters who donate via your DonateNow will incur a 3% rate instead of 4.75% for recurring donations or minimum 5% grant for one-time donationsfinance + social business + web 2.0 56

Donation – Charity IZI-Collecte Offering • Offers a platform for associations via membership management and fundraising (secure payment solutions), mobilization (emailing tool and database management), and tax receipt management at lower cost (8% v. 2% of costs) • Saves over 1,400 € on a 589,00 secure transaction by reducing costs of site development (400), transaction (500/mo), printing receipts (281/mo),Identity management of account (79/mo), and newsletter (158/mo) • Simplifies, saves time, reduces costs, secures donations, and respects• Founded by Alexander Ayad, Eric de environment la Ambrose, and Anthony Fifra • Intermediary for organizations and members• Founded in February 2008• French• Based in FranceActivity and Key Figures Operating Model and Legal Structure• Currently used by over 700 associations • Control procedures include verifying legal existence of the• Over 100,000 transactions a year association by checking the notice published in the Journal Officiel, the faculty of the account holder to act on behalf of the association with the ID of a legal representative, and tax status checking upstream associations that made their tax ruling • IZI-collecte charges 0.95 €/transaction plus 0.5 € from each withdrawal and “HighPay” charges the same amount for theComments withdrawal• Opportunity for consolidation of social business fundraising on a unique platform to negotiate rates with banks or payment providers incentivized by developing online payments to reduce quantity of checks managed by banksfinance + social business + web 2.0 57

Donation – Charity Endorse for a Cause Offering • A platform for non-profits to expand relationships with socially active supporters and online retailers to benefit from personal endorsements to allow individuals to direct their advertising services to their favorite causes • After users recommend cool retail brands via facebook and twitter, shop directly via EFAC, or via the retailer using social widgets (plug-ins) on retailer pages,Identity collect money from retailers’ advertising budgets to support causes• Founded in 2009 by Ed Trimble• Board members from Turner Media, Hannon Hill and Pardot, Think Interactive, Google, and FortiusOne• English• Based in California, USAActivity and Key Figures Operating Model and Legal Structure• Currently 500 retail partners and 10 causes • Endorse favorite retailing websites to your facebook and twitter• Causes can be added through member voting followers, endorse from partner retailer sites, or discover new retailers on endorse for a cause • Based on shopping resulting from endorsements or from the user, the retailer will donate money to causes of your choice • Secures part of the advertising budget for causes for people whoComments “advertise” their site • Users earn points, badges, prizes for activity• Social Business as a whole could be a cause to which retailers rebates could be targeted • Retailers give 4-8% of purchase to the cause • EFAC takes 50% of money until costs are covered, then 30% after thatfinance + social business + web 2.0 58

Donation – Charity Veo Search Activity and Key Figures Comments • VeoSearch (a search engine and • n/a shopping portal) allows to raise money for charity organizations by giving 50% of ad revenues related to the use of the site to charities selected by the userIdentity • Partnered up with e.g. Yahoo for the search engine and with Kelkoo for the• Founded in 2007 by Guillaume Shopping portal Heintz and Arthur Saint-Père (HEC • In 2008 50 000 Euros were given to alumni) charities – 117 261€ until today• Available in English (for the UK) and • About 220,000 visitors every month French• HQ in Paris, France Olozim Activity and Key Figures Comments • Provide direct marketing services (SMS & • n/a Email) to increase customer base: advertisement service for companies, which costs go directly to charity as micro donationsIdentity • 70 000 members • 3300 € has been collected• Founded in 2008 by Frank Julien • Olozim is free for members who can• French choose to receive emails (2/week) in• Based in Monaco order to receive the kind of advertisement he wants • Advertiser pays a fee for this communication channelfinance + social business + web 2.0 59

Donation – Charity SocialVest.us Activity and Key Figures Comments • SocialVest allows US-consumers to earn • Interesting tool to mobilize the money for non-profit organizations every corporate world to give charity time they make a purchase online with a via consumers partner retail store or with using their • Allows companies to registered credit card in a physical store differentiate and allow to giveIdentity • Over 600 partner retail stores, over 1.5 charity and thereby fund social million NGOs to donate funds entrepreneurship more easily.• Founded in 2009 by Adam Ross • Numbers n/a• English• Based in the the U.S CauseOn Activity and Key Figures Comments • Same as groupon, but the company gives • Interesting to observe as they 15-20 percent of the revenue from every took a working business model deal directly to from them pre-selected (groupon) and turned it into a cause social business • Planning on hiring between 100-130 newIdentity employees in 2011 and to expand to over 45 US cities• Founded in August 2010 by Craig Barnes• English• Based in the U.S.finance + social business + web 2.0 60

Donation – Charity Mail for Good Activity and Key Figures Comments • 6711.19 € raised • n/a • Take 50% of advertising revenues • Advertise • Works with Gmail, Microsoft, Yahoo, Free and SFRIdentity• Founded by Bruno Humbert and Ismael Le Mouel in 2009• Send advertisements in your mail for a DD charity thereby sending donations to that charity• French, based in Francefinance + social business + web 2.0 61

Donation – Charity Micro Don Offering • The social objective of micro DON fundraising by the micro-donation: donate a small amount (pennies to a few euros) mainly through rounding paychecks and invoices to the nearest euro and donating or investing these funds • It’s only small amounts of a few cents to a euro • Premise of giving a little more oftenIdentity• Founded in 2007 by Pierre- Emmanuel Grange• French• Based in FranceActivity and Key Figures Operating Model and Legal Structure• n/a • Partnered with paycheck managers such as ADP and CEGID to collect micro-donations from the various payrolls they manage • Needs to go through the paycheck manager • Offers partnerships with companies for payroll • Most donations tax deductible (depending to which NPO the funds are sent)Comments• Although micro-don is not an online P2P platform, it allows employees to give up a few cents (or euros) from their salary, and send it to a NPO they may choose (depending on the selected scheme of the employer)finance + social business + web 2.0 62

Donation – Social Entrepreneurship SASIX Offering • Promotes an engaged way of giving charities - “investments” (donations) with pure social return • SASIX selects and lists social development projects for pure social – return investments (donations with follow up function) • SASIX provides independent research, evaluation and monitoring to ensure thatIdentity listed projects meet their set of criteria• Founded in October 2004 by Greater • “Shares” on SASIX can be bought for €5 (R50) and be paid with a credit card (or Capital, Managing Director Dean “points”) Hand, (Greater Capital Research) • Investors have the option of setting up their own Giving Foundation – a• Available only in English personalized charitable fund which you can set up as a family, an individual or as a business.• Based in South Africa • Investors can keep track of how their investments are performing and view the social impact they are having onlineActivity and Key Figures Operating Model and Legal Structure• Currently 100 projects listed on SASIX • Success maybe partly due to legal requirements in South Africa• 69 projects already funded (1.6million EUR) to give a part of profits to charityComments• Building on this successful experience, Greater Capital has built the Nexii platform to replicate it to other countriesfinance + social business + web 2.0 63

Donation – Creativity and Individuals KickStarter Offering • Marketplace for fund seekers; project-based crowdfunding platform for creative ideas • Same business model as RocketHub; the only major difference to RH is a reward requirement • Projects are required to offer “backer” rewards, which are typically thingsIdentity produced by the project itself (e.g. a copy of the CD, a print from the show, a limited edition of the comic)• Founded by Perry Chen, Strickler,& Adler • Its up to the project creator to create, price, and fulfill their rewards. Most projects also offer creative experiences: a visit to the set, naming a character• Launched in 2009,as a private after a backer, a personal phone call. commercial business • Funding is tax deductible if the creator of the project has a 501c3 statu• English (only)• Based in New York, USAActivity and Key Figures Operating Model and Legal Structure• Kickstarter has funded projects ranging from indie • 5 percent fee to the funds raised (all or nothing) film and music to journalism and food-related projects • Kickstarter uses Amazons Flexible Payments Service • Amazon will apply credit card processing fees, which also work out to roughly 3-5 percent • Currently, US-based user can only start projects (Amazon payments requirements), but there are plans to expandComments Kickstarter internationally; funding is however of global reach• If the initiative become popular, a huge leverage is possible via the internet and crowdfunding works best (TikTokLunaTIk example, launched almost 1 million USD within 30 days)finance + social business + web 2.0 64

Donation – Creativity and Individuals Rocket Hub Offering • Online project-based crowdfunding platform for “creative projects” • Creatives (Musicians, Filmmakers, Authors, Painters, Photographers, Scientists, Social Experimenters, Actors, Comedians, Chefs, Designers, Developers, Inventors, Programmers, Architects, Journalists, Startup Founders, etc ) are invited to use RocketHub in order to raise funds and awareness for particularIdentity projects and endeavors (all-or-nothing funding) • No screening process before the project goes live• Founded by the artists Brian Meece, Jed Cohen, and Vladimir Vukicevic, • Claims no ownership over the projects privately owned (self-funded) • Projects launched on the site are permanently archived and accessible to the• Launched in Jan 2010 public• English (only)• Based in the USAActivity and Key Figures Operating Model and Legal Structure• 76 Successful projects (most projects within 1000- • Free for Creatives - to upload a project and begin fueling 5000 USD range) • If a project is successfully funded, an 8% fee is raised - 4.5% for• 132 launched but not successful projects listed (some RH and 3,5% to payment merchants (all major credit cards of them are still active; numbers as according to accepted) webpage)Comments• n/afinance + social business + web 2.0 65

Donation – Creativity and Individuals Babeldoor Offering • A platform for artists, writers, designers, filmmakers, adventurers, entrepreneurs, and humanitarians to use a limited timeframe to mobilize sponsors, patrons, and supporters. • Subject to rule of all or nothing but can collect unlimited, similar to kickstarter • Intermediary for P2P, a platformIdentity • Offers non financial returns on each project• Founded in 2010 by Hortense • Targeted to French projects Garand and a team of artists and professionals in fields of finance, communication, IT, social entrepreneurship, sponsorship, investing• French, based in FranceActivity and Key Figures Operating Model and Legal Structure• Currently 59 projects • Utilizes “Paybox” to collect money once the threshhold has been reached before the 100-day period • Babeldoor charges 5% collection costsComments• n/afinance + social business + web 2.0 66

Donation – Creativity and Individuals Ulule Activity and Key Figures Comments • Currently operating under a “freemium” • One can join the Ulule network model where Ulule does not take any via Facebook Connect commission but will offer premium • Ulule Vox is a social network for services later on exchange on their website • Receives money through ads and • Aggressive individual marketingIdentity sponsorships through blogs, social networks, • 75 projects funded blog, and content and• Founded by Alexandre Boucherot • 67 current projects information sharing sites and Thomas Grange• “Freemium” crowdfunding site for • Most donations 500-2000 € creative projects, no rewards• English, French• Based in France KissKissBankBank Activity and Key Figures Comments • Currently 34 active projects • Visually attractive and functional • Many projects are films and trips website • 20 successful projects • Good marketing and communication, appearing in top • Avg. successful project: 6,381.5 € magazines and new program • 10% commission for KKBBIdentity• Founded in 2009 by Vincent Ricordeau, Ombline le Lasseur, and Adrien Aumont modeled• Crowdfunding creativity for rewards.• French, based in Francefinance + social business + web 2.0 67

Donation – Creativity and Individuals Pozible Activity and Key Figures Comments • Australia’s first crowdfunding platform for • Offers non financial rewards individuals, groups and organizations instead of investment or • Recently changed their name from repayment FundBreak • Similar to other crowdfunding • 7.5% fee and credit card fee P2P platformsIdentity• Founded in 2010• English• Based in Australia IndieGogo Activity and Key Figures Comments • Worlds “largest” crowdfunding platform • As of 2010, it has hosted almost • Main difference to other fan-funding sites: 16,000 funding campaigns not all or nothing funding approach (successful?) in areas such as • In July of 2010 partnered with MTV New music, charity, small business Media. and film.Identity • 4% fee on the money raised when• Founded in 2008 by Danae funding goal is reached Ringelmann, COO; Slava Rubin, • + 3% payment fee (in case of successful CEO and Eric Schell, CTO funding, 9% if not successful - projects• English (only) are still launched)• Based in San Francisco, USA;finance + social business + web 2.0 68

Donation – Creativity and Individuals PledgeMusic Activity and Key Figures Comments • Online crowdfunding platform, only for • Unusual feature/ Interesting music option: encourages artists to • 77% of projects launched on the site include contributions to charity successfully reaching their fundraising of choice if funding goal is target exceededIdentity • Popular with projects starting almost every 2nd hour. and donations every few• Launched in August 2009 by CEO minutes (exact numbers n/a) Benji Rogers, a London Based musician and a team of some ex- • Charges 15% of funds raised Warner executives • Commercial partnerships with MySpace,• English (only) SonicBids• Based in London, UK FansNextDoor Activity and Key Figures Comments • Online crowdfunding platform, still a beta • n/a version • All-or-nothing approach • Login for platform per sign in or “connect with facebook”Identity • Currently 8 projects running, of which 4• Founded by a group of students at are fully funded (between €1000 and the University of Luxembourg €11000 – tbc) (around Benjamin Larralde) • Charges no fees, as the homepage is still• Launched in April 2010 in beta. However, uses PayPal for payments, which charges fees• Available in French and English• Based in Rueil Malmaison, Francefinance + social business + web 2.0 69

Donation – Creativity and Individuals Invested In Activity and Key Figures Comments • Online crowdfunding platform, with non • n/a financial return to supporters • 1047 members, all generated through facebook, twitter and myspaceIdentity• Launched spring 2010• Only available in English• Co-founded by Alon Goren MyFootballClub Activity and Key Figures Comments • Single project website • Interactive leadership provided • 4,000 active members who each pay £50 by an internet community per year or £100 a year for a club membership • 75% owned by community, 25% byIdentity investors and former owners• Like the Green Bay Packers NFL football team, Ebbsfleet United are a publicly owned football team, bought by an internet community led by David Dash in 2007• English, based in the UKfinance + social business + web 2.0 70

Donation – Creativity and Individuals Flattr Offering • Social micro-payment platform • Support creators: You pay a monthly fee to flattr, the user may decide the amount paid • At the end of the month, the fee is distributed between all the things you have flatteredIdentity • Get paid for your work: Users add flattr button to their content• Founded in 2007 by Peter Sunde • Before you can get flattred you need to add some funds and flattr others Kolmisoppi • Similar to the Facebook "like" button only with real money• Launched in 2010 • May only flattr the same thing once a month• English language• Based in SwedenActivity and Key Figures Operating Model and Legal Structure• 130 070 things to flatter • 10% of incoming revenue is taken by flattr• 395 506 flatters made • Member pays transaction fees• 70,000 users • Monthly payments €2 and no more than €100Comments• When registered, you are always logged on the flattr account- easy to make donation• Flat pricing, makes “the mental transaction costs” smaller, no restrictions on how many items you flattr, yet fixed amount of money distributedfinance + social business + web 2.0 71

Lending – Social Entrepreneurship Kiva Offering • Kivas mission: connect people, through lending, to alleviate poverty • Dignity: partnership relationships (peer-to-peer) • Accountability: more accountability than donations where repayment is not expected • Transparency: open platformIdentity • Loan Focus: Both genders, developing countries & USA• Founded in 2005 by M.Flannery & • Kiva created a rating system to measure institutional risk, i.e. the risk that a Field J.Jackley Partner may default• Available in English (although the website kivaenfrancais.org provides a search tool in French)• Based in California, USAActivity and Key Figures Operating Model and Legal Structure• 190 Mio USD of loans • Partners with MFIs locally who disburse loans/upload stories,• 490.000 entrepreneurs in 58 countries lenders browse profiles and lend, Kiva disburses lenders funds• Kiva community of approx. 550.000 user from 209 to MFIs, Entrepreneurs repay their loans, Kiva provides countries repayments to lenders• On average: lender provides 6.5 loans of $218 • Funded by donations of Kiva community lenders (7% of all loans are donations to Kiva)Comments • Partners: - PayPal: access to technology, research, workplace resources• Kiva networks with many corporations, most of them and employee volunteers provide donations, technical support, communication - Google Grants recipient - free advertising through Adwords, & awareness attracting new lenders• Gift Cards can be purchased and the amount of - E&Y: Volunteering, Pro-Bono advisory iv) others mainly expired ones goes to Kiva as donation donations (like $1Mio in cash or in kind)finance + social business + web 2.0 73

Lending – Social Entrepreneurship Babyloan Offering • Platform between users and low-income micro-entrepreneurs via the intermediary of microfinance institutions (Peer-to-peer) • Community of Babyloanians promoting online social lending (snowball effect) • Raise awareness about microfinance and new solidarity (social entrepreneurship, social web, etc.)Identity • Focus: developing countries & France • Founded in 2008 by Aurélie Duthoit and Arnaud Poissonier• Available in French and English• Based in FranceActivity and Key Figures Operating Model and Legal Structure• €1.4 Mio of loans (avge loan of 56€) • Commission fees of 2% of money lent to cover the costs of• 4690 entrepreneurs in 128 countries secure transactions and a part of BL’s operational costs• Babyloan community of approx. 9.000 user from 128 • MFI partners’ invoice: BL provides MFIs with free-interest loan countries raising, which implies to relate MFIs with lenders and carry out rigorous auditing in order to ensure transparency of the procedure and usefulness of the loans.Comments • Interest-bearing transfer bank account: money collected on the Website passes through a transfer account remunerated at ~• n/a 0,1%finance + social business + web 2.0 74

Lending – Social Entrepreneurship Xetic Activity and Key Figures Comments • Micro-credit for Africa • MFIs = local partner • Loans funded : 18150 € • 3 locations in French-speaking • 364 lenders participating AfricaIdentity• Founded by Jeremy Camus• Founded in Fall 2010• English, French• Based in Africa Woka Activity and Key Figures Comments • Focus on projects in China • Based on partnerships with • Loans funded: $380.000 MFIs • Number of borrowers: 469 • Number of loans provided: 603 • Amount raised: $ 310.000Identity • Average loan: $ 500-600• Founded in 2007 by Courtney • Number of lenders: 2.651 McColgan and Casey Wilson• English• Based in the U.S.• Lend money to borrowers in Chinafinance + social business + web 2.0 75

Lending – Social Entrepreneurship RangDe Activity and Key Figures Comments • The webpage is down at the moment • Focused on the Indian market. • Rang De is an online microfinance The local factors is an important company that allows Indians to lend thing to keep in mind money to fellow Indians that require microloans to start or grow a businessIdentity • RangDe charges its borrowers a fee on• Founded in Fall 2006 by all transactions to cover costs Ramakrishna NK and Smita Ram• Launched in 2008• English• Based in India Dhanax Activity and Key Figures Comments • dhanaX is an online-offline person-to- • Strong focus on local factors person lending platform that allows Indians to lend and borrow money from each other • Selection of borrowers offline, lendingIdentity online• Founded by Shiva Cotipalli, • 6.5% commission from the borrower on Prashant Mishra every funded loan; 1.5% from the lender• Founded in 2007 on every repayment• English• Based in the Bangalore; Indiafinance + social business + web 2.0 76

Lending – Social Entrepreneurship MyC4 Activity and Key Figures Comments • Loans funded : 12,589,953 € • Lending to SMEs, already • 6,346 businesses from 7 African quality proven countries have borrowed • Auto bid function, lenders make • 18,135 investors offers based on preferences (interest rate, sum lent, industry,Identity country, provider)• Founded in 2006 by Mads Kjær and Tim Vang• Danish, English• Based in Denmark with a regional office in Africa Energy in Common Activity and Key Figures Comments • 6.1 number of people benefiting from • Measures the emissions each loan reduction created by the loan • $5.53 = average daily household income • Able to donate the money to the of EIC entrepreneurs organization instead of re- • 0.1 = average metric tonnes of CO2 lending, works like a carbonIdentity emission reductions per year per loan offset• Launched in 2010 by Hugh Whalan • 25% EIC loans that have been made to and Scott Tudman women• English• Like Kiva, only greener, supporting clean energy projects in the developing worldfinance + social business + web 2.0 77

Lending – Social Entrepreneurship MicroPlace Offering • Platform to peer-to-peer lending with interest • Investor directs loan to a microfinance project - selects projects (places, causes, ROI) • Facts are described in the issuer prospectus (key terms, risks, facts of a given investment)Identity • Investor can pay with PayPal or a bank account• Founded in 2006 by Tracey • Earns a ROI (quarterly interest payments made to the account, quarterly Pettengill Turner, acquired by ebay statements on investor’s portfolio) the same year (as PayPal affiliate) • Different loan maturities - choose to get money back or roll it over into another• Available only in English investment• Based in San Jose, California, USA • Customer support for MFIs: marketing, processing and administering the investmentsActivity and Key Figures Operating Model and Legal Structure• n/a • Inhouse Payment System (PayPal) to lower costs • Rely on MFIs • 1% of the investment dollars raised on microplace.com as a fee for the MFIComments• n/afinance + social business + web 2.0 78

Lending – Entrepreneurship FriendsClear Offering • Two platforms as funding alternative, conveying link between entrepreneurs and private investors i) FriendsClear Family - a financial exchange among families and friends ii) FriendsClear Pro: funding of projects between entrepreneurs and investors • Entrepreneur describes the project, profile, Business Plan and justification -Identity (Friendsclear checks his credit rating) • Investor registers, selects a projects to finance (at least 100€, at least 3 investors• Founded in 2008 by former directors by project of the consultancy firm Andersen • Collective due diligence of projects: investors can ask questions• Available in French • Max amount demanded is 25,000€ over 3 years and with around 5.5% interest• Based in Paris, France rate • Investor earns an average interest of 4.5%Activity and Key Figures Operating Model and Legal Structure• Total of 38 projects in France (14 in Ile de FR) • FC covers the costs by commission of 7-9% (5.5% interest rate• Between €3.000 – 25.000 (avg. of 10.000) and 4% administrative fee) to the borrower – part of 4% and 1%• 40% of projects are commercial services; Others: interest rate spread goes to the bank Agriculture, handcraft, media, etc. • 15€ announcement fee • Relies on loans (similar to Kiva, Babyloan, etc.) • No credit rating, risk assessment through BMComments • Partnerships like FriendsClear established with Credit Agricole• As a reference/to attract visitors, FC created a Blog (technical partner) and Aide (partner for Microfinance demands) Community to provide and update information and get immediate feedbackfinance + social business + web 2.0 79

Lending – Entrepreneurship Funding Circle Activity and Key Figures Comments • Low cost p2p diversified small business • n/a loans where people spread loans to many businesses and businesses accept lowest rate offers avoiding bank overhead • £1.3 million lentIdentity • Currently no fees to lenders, borrowers pay 2% of loan• Founded in August 2010 in the UK by James Meekings • Rates usually between 6-9%• English CoFundIt Activity and Key Figures Comments • Crowd funding website and social • Using crowd innovation and network to connect borrowers and social network to promote ideas entrepreneurs (debt financing) and funding • 23 listed businesses • 25 investors, 42 membersIdentity • Total funding amount of 250,000€• Co-Founded by William Blanco-Bose • Fee of 5% of total funding and Hervé Flutto• Founded in 2010• English• Based in the Lausanne, CHfinance + social business + web 2.0 80

Lending – Entrepreneurship FairPlace Activity and Key Figures Comments • First p2p lending service in Brazil • n/a • 25 new members a day • 5% fee for one year loan and 8% for two year loans • Lending fee of 2% of each repaymentIdentity (repaid principal and interest)• Founded in August 2010 by Eldes • Average interest rate of 3% Matiuzzo • Maximum interest rates are 12% for the• Portuguese (Brazilian) lender• Based in Sao Paulo, BR• Similar to Zopa, Prospeer, Samava and Lending Clubfinance + social business + web 2.0 81

Lending – Creativity and Individuals Lending Club Activity and Key Figures Comments • Loans funded : $210,598,875 • Own credit rating, based on • Interest paid to investors since inception: hard information $16,188,484 • Loans through webBank • 23,000 lenders connected with 18,500 (industrial bank) loansIdentity • Total balance outstanding: $179 million• Founded in 2007 by Renaud • Fees; borrowers: 2.25% - 4.5% of sum Laplanche borrowed/ lenders: 1% of each payment• English received from the borrower• Based in the U.S. Zopa Activity and Key Figures Comments • “Everybody wins, except the Fat Cats”, • n/a peer-to-peer loans • Over 4 million pounds available today • 110 million pounds lent so far • 99.3% repaidIdentity • Strong risk controls• Founded in 2005 in the UK by Giles • Fee of 124 pounds per borrower Andrews • Fee of 1% of loan to lender• Planned expansion to US (awaiting license)• Englishfinance + social business + web 2.0 82

Lending – Creativity and Individuals Rate Setter Activity and Key Figures Comments • P2P “safe” loans • Similar to Zopa and Funding • Different from Funding Circle and Zopa Circle with the addition of a by offering one month “rolling” loans that provisional repayment fund allow lenders to opt out of loans and a financed from borrowers for ‘provision fund’ from borrowers to lenders and rolling loans thatIdentity guarantee defaults Currently low interest allows lenders to get their rates around 3.8% for lenders on rolling money out if they need it• Founded in October 2010 by loans Already 8,600 users • Basically guaranteed loans Rhydian Lewis and Peter Behrens • Offering £1.5 million in loans• English • Fees by borrowers £115, lenders 10%• Based in the UK interest • Money spread between borrowers Prêt d’Union Activity and Key Figures Comments • 0.5-3% default rate predicted vs. 5-6% in • n/a traditional lending practices • Potential to be a 5 billion € market by 2015Identity• Founded in 2009 in France• Not launched – planned in 2011• Frenchfinance + social business + web 2.0 83

Lending – Creativity and Individuals Prosper Activity and Key Figures Comments • Loans funded : $215,000,000 • Borrowers assessed on the • 1,020,000 members basis of: • Feasible range for a loan request: $2,000 - credit scores, ratings, and to $25,000 histories • Minimun investment per listed loan: $25 - borrowers’ personal loanIdentity descriptions, • Average loan size (independent of credit• Founded in 2006 by Chris Larsen rating): $4,402 • endorsements from friends, and community affiliations• English - No interaction between• Based in the U.S. borrower and lender • p2p, no banks involved Quakle Activity and Key Figures Comments • Borrowing of money between £1,000- • Using credit rating and (social- £21,000 with 12-36 months repayment based) reputation score in order scheme to evaluate default rates • Interest rates are determined by the borrower between 1-25% (excl. Quakle’sIdentity commission fees) • Commission fees: £100 service fee for• Founded in 2008 by Josselin Digny the person who wants to borrow money• English and £20 to cover the costs of the Debt• Based in in London, UK Collection Agency • Intermediary of legally binding contracts between lender and borrower • Currently one loan of £3,500finance + social business + web 2.0 84

Lending – Creativity and Individuals Activity and Key Figures Comments • Borrowing of money between £1,000- • Using credit rating based on £25,000 with 12-60 months repayment online based group scheme (incorporation of social • Interest rates are determined by the networks) creates more than a average of lenders‘ bids (on average 15- lender-borrower relationshipIdentity 30%) • £80 service fee for the borrower• Founded in 2010 by Dr. Chandra Patni • 0.9% lending fee for the lender• Based in the Hertfordshire, UK • £25 fee for every default on monthly payments • > £220,000 already fundedfinance + social business + web 2.0 85

Investment – Social Entrepreneurship MissionMarkets Activity and Key Figures Comments • Market place for private placement, open • n/a only to accredited investors and institutions • Products include private unregistered debt, private equity, co-op shares, profitIdentity sharing notes, direct public offerings.... • It is subject to SEC/ FINRA regulation• Founded by Michael J. Van Patten and Steve Rocco • In Feb 2011, participated in the funding of Lumni, an international pioneer in what• Founded in July 2010 it calls “human capital financing” invests• English in higher-education for low-income students, and HotFrog, an online media portal that has yet to launchfinance + social business + web 2.0 87

Investment – Entrepreneurship Wiseed Offering • Crowdfunding applied to the financing of startups • Capital investment tool on businesses with “high growth potential”; the targets are all innovative SMEs, mostly French, responding to Article 885-0 of Va. Tax Code, which have a strong entrepreneurial culture • True shareholder approachIdentity • Creates one dedicated holding for each company which functions as• Founded in June 2009 by Thierry intermediary between the investor and the startup– investors get a share in the Merquiol holding• French (only) • WiSEED enables investors to invest from €100, payments are possible with credits cards• Based in Toulouse (France), focused on the French market • “Investment Management-network “to provide advice on their products, services and strategyActivity and Key Figures Operating Model and Legal Structure• 15 startups fully co-financed • Management fees of 1 % annually over 5 years• Maximum funding raised by Wiseed €100.000 due to • Manages paperwork for €7000 fee (min. 7% - depending on legal limitation (min. €50.000) funding volume)• Currently 4 startups online which are seeking • The earning horizon is a minimum of 5 years, in line with the financing (each of which €100.000) time needed to qualify for tax exemption (25%) but mostly in line with the economic reality of these companies.Comments • Aims at profitability of 7-10% p.a. for investors• Focuses mainly on the French market, regional / cultural characteristics to learn from them, as well as legislative issuesfinance + social business + web 2.0 88

Investment – Entrepreneurship GrowVC Offering • Platform for seed funding for startups, community based (social network) • funding up to 1M USD per firm-small to average funding • Project allocation decided by members • Members ranked on their recommended investments for the fund (based on successfully closed deals)Identity • Targeted audience: startups, experts, individual and professional investors• Founded by Jouko Ahvenainen and • Out of social business ValtoLoikanen • Online investing club• Founded in 2008, launched in 2009• Based in Hong Kong, offices in UK and FinlandActivity and Key Figures Operating Model and Legal Structure• 7,000 registered members • GrowVC takes subscription fees to allow members to access the• $18M capital raised details of start ups open for funding• 47 funded startups• 1,554 total number of startupsComments• Interesting Online Investment club approachfinance + social business + web 2.0 89

Investment – Entrepreneurship Profounder Activity and Key Figures Comments • Community-based crowdfunding • Highlights the local / first circle • Tool to support “offline” transaction: of friends factor when raising provides the means for crowdfunding funds - people rather give to from friends and family and provide people they know/feel returns to them connected toIdentity • Return as a % of revenue • Share of revenue is very intuitive, however uncertainty• Launched in July 2010 by Jessica • Only one success story: Bronson Chang about how profit is measured Jackley (former CMO of Kiva.org), & Uncle Clays House of Pure Aloha and by whom Dana Mauriello, Ryan Garver , ($54.000 raised from 19 friends, family, classmates, and loyal customers, who are • Very low activity Olana Khan offered 2% of revenues over 4 years as• English (only) well as other bonuses like private tastings• Based in the USA of new shaved ice flavors) MicroVentures Activity and Key Figures Comments • Community-based crowdfunding • Investment platform aiming to • Investors are able to invest from $250 to fund bigger funding needs than $ 5000 (accredited investors) its competitors • The companies seek funding between $ • combines peer-to-peer lending 50 000 and $ 250 000 with the venture capital aspectIdentity enabling the individual investor early access to private• Founded in 2009 by William M. Clark opportunities and Scott Rhode• Englishfinance + social business + web 2.0 90

Investment – Entrepreneurship CrowdAboutNow Activity and Key Figures Comments • Platform to invest in startups (with • n/a minimum of 10€) • Crowed about now charges €0.77 per transaction • Return and maturity depend on theIdentity startup• Co-founded in 2010 by David Gernaat• Dutch• Based in Utrecht, NL CrowdCube Activity and Key Figures Comments • Minimum target amount is £ 5000 • Offer a reward (a gift, a good • Minimum investment is £ 10 or a service), usually related to • No maximum investment level the business to the Investor as an incentive to invest in the • Allows entrepreneurs to offer different company types of return, financial (dividends) orIdentity non financial • For instance, an entrepreneur could give away products or a• Founded in 2010 by Darren • Owned shares can be sold as the discount on future purchases of Westlake and Luke Lang platform plans to include an “exchange” products or services.• English • However, there is no voting rights• Based in the UK, only facilitating attached to the shares investments in UK companies from UK citizensfinance + social business + web 2.0 91

Investment – Creativity and Individuals MyMajorCompany Offering • A platform for artists, writers, designers, filmmakers, adventurers, entrepreneurs, and humanitarians to use a limited timeframe to mobilize sponsors, patrons, and supporters. • Assures users that it offers same benefits of a traditional record label in terms of professionalism, networking, commercial strength, finance, and promotion inIdentity addition to 20% of net revenue, complete media site, and the investing community• Founded in 2007 by Michael • To attract investors, they offer in depth explanations of how the investing Goldman, A. Marciano, S. Barsikian process works to prove they have the expertise to handle the money of investors• French, English, Based in France • Intermediary for P2P, a platform with support• Expanded to UK in dec 2010, led by • Offers a return on investment (40% net revenue) CEO Paul-Rene Albertini • Targeted initially in France but spreading throughout Europe• Also Expanding to Germany, Italy, Spain, Scandinavia • Targeted to investors and supportersActivity and Key Figures Operating Model and Legal Structure• MMC France has 28 fully funded acts and 98,500 • Raise funds from investors with donations from 10-1,000 to registered users reach 100,000 threshold • Once they start making money, the net revenues are split 20% for the artists, 40% for the investors, and 40% for the labels • Investment returns decreases to 10% once revenue has exceeded £750,000Comments • The net revenues consist of sales of digital and physical album and sales from 360°rights minus the costs of manufa cturing,• MyMajorCompany offers significant support to secure mechanical rights, selling and distribution, and unsold goods. the success of selected artists • MyMajorCompany is a different kind of crowd sourcing because they give much more support than other platforms once funded as it operates as a record label under the main goal of being fairer to artists and music creatorsfinance + social business + web 2.0 92

Investment – Creativity and Individuals SellABand Offering • The site has seen much less activity since the relaunch and many artists and believers have left or become inactive.Identity• Launched in August 2006, went bankrupt in Feb 2010 (Johan Vosmeijer, ex Sony/BMG)• HQ in Germany and the Netherlands• Available only in English• Relaunched in 2010 (HQ in Germany)Activity and Key Figures Operating Model and Legal Structure• When going bankrupt, it had raised $3M for 23 artists. • SellaBand takes 15% of the funding budget• On April 8, 2008, SellaBand raised EU€3.5 million[ • Not successful business model: The Initial business model was US$5 million) ‘investing’ (such as my major company): Fans could contribute a minimum of 10 Euros to the help their favorites launch an album. The money they would be returned to them if the band turned a profit. Effectively, the website allowed fans to become stockholders in their favorite groups.Comments• “Failure” factors: Insufficient selection of projects and lack of promotionfinance + social business + web 2.0 93

Investment – Creativity and Individuals Catwalk Genius Offering • Online investment portal allowing interested people to get involved in fashion; concept of crowdfunding to the fashion industry aims to solve the funding problem of by emerging labels • Privately owned, commercial business • It is both an shopping/retail and an investing portal (buy a share in collections)Identity • With the “back a Designer” feature, a label can put itself up for backing. It can• Co-founders are Helen Brown (also showcase its designs and begin looking for supporters. CEO), Lynsey Goldring and Mal Hill • Supporters can also earn perks (exclusive fashion treats in return for support)• Launched in Jan 2010• English (only)• Based in Ireland (also UK company reg.)Activity and Key Figures Operating Model and Legal Structure• Payments methods are PayPal, Visa, MasterCard or • Supporters pay £11/share in the collection being backed. Once Visa Debit 5,000 shares have been sold, Catwalk Genius pays out £50,000• Currently 45 project listed with an average of 35.000 to the designer.. (fee is hence 9.1%) GBP (however, most projects have a funding process • The funding collected: create a clothing range and the revenues of 0-2%) from its sales are shared equally between designer, supporters and Catwalk Genius.Comments • Labels commit to splitting any profits (40% to Catwalk Genius, 30% to supporters and 30% for designers/labels); Uncertainty• Too many projects with too low funding progress about how profit is defined/ calculated might reduce the credibility of the portal and thereby the popularity. Prescreening is very importantfinance + social business + web 2.0 94

Other models to collect small amounts from the crowdDonate – Credit cards and point-based loyalty programs Offering • Most banks currently offer credit cards with rewards of frequent flyer miles, consumer goods, or cash back • These points are redeemed for rewards • These rewards can be Example: If you have a Bronx Zoo Credit Card, all of your accrued credit card points based on your purchases would help fund the BronxIdentity Zoo• Credit cards couple with reward • A reward system for social businesses would offer an incentive for a cardholder programs to attract new customers to use their card for the good of these businesses so an agreement would be reached with issuerActivity and Key Figures Operating Model and Legal Structure• There is over $800 billion in outstanding credit card • Depending on the type of card, rewards will generally cost the debt in the U.S. illustrating the potential of issuer between 0.25% and 2.0% of the spread funding/donations as one dollar spent usually equals one reward pointComments• Opportunity for a Social Business rewards card for either donating or investing via credit card rewards to fund their social businesses• Social Business can also enter in an existing credit card rewards programfinance + social business + web 2.0 95

Other models to collect small amounts from the crowdDonate – MicroDon Offering • Objective to develop micro-donations, by piggybacking existing payments and collecting “change” (from an electronic payment) • There are 2 models: - microDon offer associations to distribute cards in local grocery stores, allowing to give (card value of 1, 2 or 3 euros)Identity - microdon partners with paycheck managers and companies to allow• Founded in 2007 by Pierre- employees to give up cents (or more) on their salary; consolidated funds can Emmanuel Grange be directed to 1 or more associations• French • Donations are tax deductible (depending on what association donations are• Based in France transferred to)Activity and Key Figures Operating Model and Legal Structure• n/a • Small donations are processed in the same time as an existing transaction (store check out or payroll), thus reducing the cost of collectionComments• Premise of giving a little more often/ regularly• Low cost of collection, but challenge to approach and convince both paycheck managers and corporationsfinance + social business + web 2.0 96

Data collected (1/3) Help & Follow websites Funders # of projects Average Average (or Total raised funded since Estimated funding per funding perModel Domaine Nom sub cat Creation members) since creation creation per year project supporterHelp Charity Idealist Volunteer rec. 1995 1,000,000 Charity Volunteermatch Volunteer rec. 1998 2,500,000 Charity Sparked Volunteer rec. 2008 150,000 Charity Axa Atout cœur Volunteer rec. 2009 15,000 300 actions Charity Koeo Volunteer rec. 2009 Charity jagispourlanature.org Volunteer rec. 2010 Fun Dreamshake Volunteer rec. 2008 1,440 Entrepreneurs startupschool X 2009Follow Charity Care2 Social network 1998 15,000,000 Charity WiserEarth Social network 2007 45,000 Charity Everywun Social network 2008 Charity Jumo Social network 2010 Fun MySpace Social network 2003 100,000,000Sources: websites, news, estimates finance + social business + web 2.0 98

Data collected (2/3) Donate websites Funders # of projects Average Average (or Total raised funded since Estimated funding per funding perModel Domaine Nom sub cat Creation members) since creation creation per year project supporterDonateCharity Veosearch Browse 2007 €0.12M €0.06M €600-4000DonateCharity mailforgood Browse 2009 €0.01M 12 €0.01M €558DonateCharity Justgiving Event page 2000 12,000,000 €840M €105MDonateCharity Aiderdonner Event page 2008 20-50,000 €1-2M 80 €1-2M €10-20,000 €30-100DonateCharity Global Giving Portal 2002 100,000 €23M 2,700 €2.9M €8,547DonateCharity betterplace Portal 2007 €3.5M 950 €2.5M €3,684DonateCharity bringlight Portal 2007DonateCharity Act of Good Portal 2008DonateCharity Ebay GivingWorks Shop 2003 €154M 18,544 €38M €8,296DonateCharity Olozim Shop 2009 80,000 €0.04M 10 €0.02M €4,062 €0.5DonateCharity Endorse for a cause Shop 2010DonateCharity Socialvest.us Shop 2010DonateCharity CauseOn Shop 2010DonateCharity Causes Social network 2007 140,000,000 €23M €8M €285DonateCharity Network for Good Tool 2001 €372M 60,000 €100M €6,205 €77DonateCharity izi-collecte Tool 2008 €1.2MDonateCharity Avon walk 2003 500,000 €380.0M €50M €100DonateCharity Microdon 2007DonateSocial business SASIX 2004 €1.6M 70 €0.3M €22,857DonateFun MyFootbalClub Crowdfunding 2007 4,000 €1.4M 1 €0.5M €120DonateFun Invested.in Crowdfunding 2010DonateFun IndieGoGo Crowdfunding 2008 €0.9M 336 €0.4M €2,538DonateFun Kickstarter Crowdfunding 2009 470,000 €29M 6,500 €19M €4,462 €62DonateFun RocketHub Crowdfunding 2010 €0.21M 89 €0.2M €2,385DonateFun Kisskissbankbank Crowdfunding 2010 €0.13M 20 €0.19M €6,250DonateFun Ulule Crowdfunding 2010 3,000 €0.12M 60 €0.18M €2,000 €40DonateFun Pozible Crowdfunding 2010 €0.11M 43 €0.11M €2,625DonateFun Babeldoor Crowdfunding 2010 €0.07M 35 €0.11M €2,000DonateFun PledgeMusic Art crowdfunding 2009 €0.2M 40 €0.2M €5,385DonateFun FansNextDoor Art crowdfunding 2010 €0.02M 4 €0.03M €4,351DonateFun Flattr Micro funding 2010 €1-10Sources: websites, news, estimates finance + social business + web 2.0 99

Data collected (3/3) Lend & Invest websites Funders # of projects Average Average (or Total raised funded since Estimated funding per funding perModel Domaine Nom sub cat Creation members) since creation creation per year project supporterLend Entrepreneurs Friendsclear P2P loan 2010 44 €0.150M 15 €0.300M €10,000 €3,409Lend Entrepreneurs Fairplace P2P loan 2010Lend Entrepreneurs Cofundit P2P loan 2011 €200,000Lend Fun Zopa P2P consumer credit 2005 €120M 20,000 €70M €6,000Lend Fun Prosper P2P consumer credit 2006 1,000,000 €168M 33,800 €100M €4,961 €168Lend Fun LendingClub P2P consumer credit 2007 €169M 22,000 €100M €7,692Lend Fun Rate Setter P2P consumer credit 2010 10,858 €2.3M 440 €7M €5,188 €210Lend Fun Yes-Secure P2P consumer credit 2010 €0.3M €0.4MLend Fun Quakle P2P consumer credit 2010Lend Fun Prêt dUnion P2P consumer credit 2011 n.a.Lend Fun FundingCircle P2P loan 2010 €11M €35,385Lend Social business Kiva P2P microcredit 2005 550,000 €146M 260,000 €29M €292 €168Lend Social business MyC4 P2P microcredit 2006 18,000 €13M 6,366 €3M €2,042Lend Social business Microplace P2P microcredit 2006Lend Social business Wokai P2P microcredit 2007 €0.29M 639 €0.10M €455Lend Social business Babyloan P2P microcredit 2008 9,000 €1.4M 4,700 €0.7M €298 €69Lend Social business energyincommon P2P microcredit 2010 €0.02M 268 €0.02M €71Lend Social business Xetic P2P microcredit 2010 400 €0.020M 60 €0.04M €333 €50Invest Social business MissionMarkets Private market place 2010 €2.0M 1 €2-500M min €50,000Invest Entrepreneurs GrowVC Inv Club 2009 7,000 €14M 47 €7M €294,599 €1,978Invest Entrepreneurs Wiseed Private market place 2009 €1.5M 15 €1.0M €100,000 €400Invest Entrepreneurs MicroVentures Private market place 2009Invest Entrepreneurs CrowdaboutNow Private market place 2010Invest Entrepreneurs Crowdcube Private market place 2011Invest Entrepreneurs Profounder Community inv 2010 €0.1M 4 €0.2M €26,154 €722Invest Fun SellaBand Community inv 2006 €1.66M 59 €0.33M €28,136Invest Fun MyMajorCompany Community inv 2007 100,000 €4M 35 €1.2M €100,000 €35Invest Fun CatWalkGenius Community inv 2010 €0M 0 €0MSources: websites, news, estimates finance + social business + web 2.0 100

Extract of sourcesDirectories, reviews and reports Articles• Wiseclerk blog • What Is Private Placement vs. Public Offering? www.p2p-banking.com www.ehow.com/about_6390604_private-placement-vs_-public-offering_.html• Wiseclerk forums • Retenir les grands principes de « l’offre au public » de www.wiseclerk.com/ titres financiers larevue.ssd.com/Retenir-les-grands-principes-de-l-offre-au-public-de-titres-• AppAppeal – Charity financiers_a916.html www.appappeal.com/apps/charity/• 9 crowdfunding websites to help you change the world • Equity investment and social enterprise www.businesslink.gov.uk/bdotg/action/detail?site=210&r.s=sc&r.l1=1073858805&r.lc=e blog.webdistortion.com/2010/07/18/9-crowdfunding-websites-to-help-you-change-the- n&r.l3=5000808603&r.l2=5000783439&type=RESOURCES&itemId=5000808613 world/• Impact Investments: An emerging asset class • The Social Stock Exchange May Come to Fruition www.clearlyso.com/sbblog/?p=1203 www.jpmorgan.com/pages/jpmorgan/investbk/research/impactinvestments • Move to change securities regulations could mean big changes in the micro-funding model www.boiseweekly.com/boise/alms-for-the-creative-crowdfunding-means-passing-on- traditional-funding-to-pass-the-collection-plate/Content?oid=1903663 • SEC Regulations Barricade The Crowdfunding Floodgates www.huffingtonpost.com/kevin-lawton/crowdfunding_b_789088.html • MyMajorCompany et les limites de la production communautaire fr.techcrunch.com/2010/11/22/mymajorcompany- limites/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+francai stechcrunch+%28TechCrunch+en+Francais%29&utm_content=Google+Internationalfinance + social business + web 2.0 101

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What funding model for Social Business?

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