Finance Options for Social Enterprises

Financing social enterpriseS
Humera Fasihuddin & Jennifer Keller Jackson, NCIIA
AI2V Sustainable Vision, August 2009, Cambridge, MA

financing options for SOCIAL ENTERPRISES
$
Net Profit
Net Loss
T
Value
revenue
Customer Funding (Advanced orders, Microfinance, Retainers, Consulting, Company Profit)
Self, FFF, Competition, Strategic
for profit
funders
SBIR, STTR, Gov’t
Angel Investors (VentureWell)*
Venture Capital*
PRI
non-profit
funders
NCIIA
Univ. Discretionary
Self, FFF, Competition, Strategic
Gates Foundations
Gov’t Grants to Univ.

what matters to investors
Financial
People
self, NCIIA
Impact
angel
Market
Technology
venture capital
debt
25%
50%
75%
100%

impact investors :: for profit (sampling)
these categories are not fixed
early/seed
angel
venture capital
acumen fund
gray ghost ventures
commons capital
venture well
investor’s circle
boston harbor angels (each city has them)
kiva.org
rice, oxford, GSVC b-plan competitions
SBIR/STTR grants
Impact investing :: investment that generates social and environmental value as well as
financial return (source: rockefeller foundation)

impact loans or grants :: non profit (sampling)
these categories are not fixed
early/seed grants
expansion
foundations (scale)
nciia
university
discretionary
alumni
NGOs
gov’t grants
(NSF, NIH, AID)
gates foundation
clinton global initiative
schwab foundation
skoll foundation
annenberg foundation
shell foundation
good capital
echoing green
some foundations
Program Related Investments (PRIs) :: investments made by foundations that involve the potential return of capital. PRIs include financing methods commonly associated with banks or other private investors, such as loans, loan guarantees, and even equity investments in nonprofits or in commercial ventures for charitable purposes. (source: foundation center)

food for thought :: spend time finding investors vs ‘just do it’
An increasing breed of ‘Impact Investors’ are looking
for social enterprises (see video)
SocCap Conference: http://www.socialbrite.org/tag/social-enterprise/
You can spend your time thinking, planning & fine-tuning…
OR you can start demonstrating traction (see video)
KIVA, Premal Shah, Founder: http://www.alternativechannel.tv/
communication-durable/videos/Social-Edge/Premal-Shah-Kiva-X-interviews/
1640/;jsessionid=9A9DF868C7E08D193FCE04A7C77AB42D

Thank you
Humera Fasihuddin & Jennifer Keller Jackson, NCIIA
AI2V Sustainable Vision, August 2009, Cambridge, MA