Social Enterprise Expansion Fund Passionate Investing to Change the World
An innovative approach to doing good Social enterprise is a new way of doing business that creates deep positive impact in the world while making a profit… These companies need a new kind of capital.
Social enterprises create sustainable, business-driven solutions to some of society’s most challenging problems.
The Grameen Bank is alleviating poverty in the developing world through microfinance.
TransFair USA is building demand for Fair Trade coffee using standards that let consumers know coffee growers get a fair wage.
Better World Books is selling used books online and channeling proceeds to literacy programs around the world
— Social enterprises combine the best of the business & philanthropic worlds.
RealBenefits: Linking to social benefits Non-profit web-based service that connects uninsured and low income individuals to public benefits Result: Since 2003, over 150 organizations have used RB to match 90,000 low income families with benefits worth over $400 million The Future: Raising $5M to deploy to more than 500 access points in 14 states by 2012, connecting individuals to more than $1 billion in benefits
Hospitals provide over $25B of uncompensated care annually
Meanwhile, 50% of individuals eligible for public benefits are not enrolled
As a result, many low income people are left with medical debt while others are avoiding necessary medical care
RealBenefits’ (RB) web-based service streamlines the complicated process of applying for public benefits
Hospitals use RB’s platform to reduces uncompensated expenses
RB spinning out a for-profit entity to commercialize and scale application
Financial Upside: $1M in revenue in 2008 growing to $15M by 2012
Kiva: Loans that change lives Alleviating Poverty: Loans as small as $25 are helping the world's working poor make great strides towards economic independence -Kiva has administered $12M loans from over 123,000 people -Current loan volume of $1.5M per month; annual revenue of $1M+ Non-profit web-based platform that enables anyone with an Internet connection to lend to micro-entrepreneurs in the developing world Scaling Impact: Kiva needs $1M in growth capital to execute on the enormous popularity of the site and effectively administer a rapidly increasing loan volume
Investors can magnify their impact We give investors an unmatched blend of social and financial return. Our fund will increase your impact in the world by creating sustainable change. We invest in companies that do good and make money. When our companies succeed, so will our investors.
A large pent up demand for growth capital exists from undercapitalized social enterprises.
The industry is at an inflection point and needs a leading institutional player to fulfill its potential.
Social enterprise needs impassioned investors who want to align their dollars with their values.
No interest in social impact or the cost of doing good Donors -Grants Debt (Nonprofit, ComDev, most PRIs) Expansion: Equity & Equity-like CDVCs/ SVCs Traditional Capital Market Purpose Maximize social return Balances SROI within business Balances SROI within traditional business ROI for expansion Maximize financial return within social or community development context Maximize financial return Risk/ Return High Risk No Return (tax break) Med/Low Risk Low Return Med/High Risk Med/Low Return High Risk Med/High Return Market rate risk/return Why they don’t plug the gap Limited scale Often lacks business case Demands collateral Lower risk profile doesn’t fund expansion Fills the growth gap, its what we are creating No appetite for the cost of doing good Fiduciary responsibility to get a market rate return Examples Foundations Calvert Foundation Partners for a Common Good NP Finance Fund Some Venture Philanthropy & Foundations No inst. Pac Com Ventures SJF Ventures Investors Circle Banks and Private Equity Social Return Financial Return The new space we fill…