20120510 Hub Bogota Feasibility Study

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This feasibility study is written under the outline provided by The HUB Network for HUB Bogota.

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20120510 Hub Bogota Feasibility Study

  1. 1. Feasilibility Study HUB Bogota D.C. Prepared by: La Arenera, Somos Más, and Fábricca May 10th, 2012Picture by Lorena Urrea, Member of La Arenera
  2. 2. Feasibility StudyHUB Bogota D.C. Executive summary THIS SECTION WILL COVER: THIS SECTION WILL COVER: •Team of founders, governance, and roles •Team of founders, governance, and roles •Key milestones, challenges, and risks •Key milestones, challenges, and risks Team of FoundersVision & Impact Community Building Community Positioning Space Finance & Fundraising Roadmap 2
  3. 3. HUB Bogota will be founded by La Arenera, Somos Más & Fabricca,three organizations leading social entrepreneurship in Colombia HUB Bogota’s Feasibility Study > Vision & Impact “Life is about the people you meet, and the things you create with them. So go out and start creating.” – The Holstee Manifesto (2009)The team of founder of the HUB Bogota is led by the Members of the team of founders are:non-profit organization La Arenera in partnership with 1.Vladimir OlarteSomos Mas, and Fabricca. 2.Paula Gutierrez 3.Pablo Espinosa La Arenera (meaning ‘Sandbox’ or 4.Nicolás Martín ‘Playground’) is a non-profit organization 5.Carlos Barrero that develops, hosts and mobilizes a 6.Juan Mahecha vibrant community of over 1,300 social 7.Jennifer Trujillo innovators and entrepreneurs in Colombia. 8.Carolina Salazar It was founded in June 2009 and registered 9.Germán Forero as a nonprofit corporation in April 2011. Their profiles will be described in the following slides. Somos Más (meaning ‘We Are More’) The envisioned HUB Bogota Governance Structure has is a non-profit organization founded in 2001 three main bodies: General Assembly of Members, with the mission of creating social and Board of Directors, and Management Team. economic value for social networks. The Additionally, there will be a Board of Advisors (BoA). organization provides consulting services on networking and social media, and Firstly, the Assembly of Members will be comprised by provides support and management those Members who have paid a HUB Membership Plan services for networks using web 2.0 for at least six months. Secondly, the HUB Board of and other information technologies. Directors will be comprised by two delegates of La Arenera, one delegate of Somos Más, one delegate of Fábricca, one elected representative of HUB members, Fabricca (meaning ‘Factory’ in English) is and one independent member. Thirdly, The HUB a non-profit organization founded in 2011 Management Team will be comprised by an executive with the purpose of contributing to the director, two hosts, one marketing and sales development of creative, artistic, and coordinator, one events coordinator, and one cultural industries in Colombia. administrative assistant. Finally, the management team will hire between one and four interns as needed. 3
  4. 4. Nine members with significant leadership and social entrepreneurshipexperience comprise the team of founders (1/2) HUB Bogota’s Feasibility Study > Team of FoundersVladimir Olarte, Delegate of La Arenera to HUB Board of Directors Paula Gutierrez, HUB Executive Director; La Arenera Steering Team•Education: MPA from Columbia University, Master of Business •Education: Bachelor of Business Administration from Universidad deEconomics from Sao Paulo School of Economics of FGV, and los AndesBachelor of Economics and International Business of Icesi •Relevant experience: Host at Hub Sao Paulo, Consultant at•Relevant experience: consultant and project manager at Kaiser Sustainable Business Consulting,Associates; representative of Invest Hong Kong in South America; and National Corporate Social Responsibility Coordinator at AIESECconsultant to Governments of South Africa, Colombia, and Hong in ColombiaKong; president at Columbia Impact Investing, president at “I believe in the power of  individuals and communities that dare toAIESEC in Colombia, and Chair at AIESEC in Latin America and discover who they are and what they really care about by lookingSpain inside, by listening to one another, by taking the first step and by“I believe in the possibility of inspiring and supporting learning from every experience, every time. Im inspired by ourentrepreneurship, social innovation and freedom-oriented capacity to co-create, to understand we interARE, to see diversitydevelopment in pursuit of bettering the quality of life of millions of and complexity as a fertile ground for real solutions. How to nurtureColombians. I believe in the potential of clusters, trust, and environments where our collective wisdom and deep connectionscooperation amongst entrepreneurs and social innovators in can really blossom into the collaborative actionsorder to generate high-impact changes.” that need to emerge now? This question moves me everyday to open up, to learn, to show up.” Pablo Espinosa, Delegate of La Arenera to HUB Board of Directors Carlos Barrero, Delegate Fábricca to HUB Board of Directors•Education: Master in Philosphy and Bachelor in Pure •Education: Master in Visual Arts from La Universidad DistritalMathematics and Digital Media Design Francisco José de Caldas. Studies in Creation, Culture and Design•Relevant experience: Art of Hosting facilitation, Art Director at from La Pontificia Universidad Javeriana.Levkane Advertising. •Relevant Experience: consultant and facilitator of Association of “How do we create a participatory space, with a Animated Films and Association of Music Teachers. Founder of common purpose and dependent of no single Fabricca. Co-wrote the “Guide of Cultural Entrepreneurship” forindividual? How do I address the difference between the Other the Colombian Ministry of Culture.and myself when such difference refers to profound beliefs? “I am inspired by entrepreneurship and am challenged by theThese questions abound in me every time I find myself in a possibility of creating spaces and processes of citizenmeeting, every time I attend or facilitate a conversation, every participation with direct impact in public affairs. Hi level oftime y reflect upon world violence and the possibility of peace.” leadership, team work, capacity to effectively and efficiently solve problems, hi level of handling interpersonal relations. Consultant in cultural development processes In any sort of socialNicolás Martín, Delegate Somos Más to HUB Board of Directors group or local, regional or national community and public or• Education: Bachelor of Information Systems’ Engineering private entities.” from Universidad de los Andes• Relevant experience: Executive Director at Corporación Somos Más, and Social Trainee at Universidad de los Andes 4
  5. 5. Nine members with significant leadership and social entrepreneurshipexperience comprise the team of founders (1/2) HUB Bogota’s Feasibility Study > Team of FoundersJuan Mahecha Jennifer TrujilloHUB Host; HUB Marketing & Sales; La Arenera Steering Team La Arenera Steering Team Member and Manager of Art of Hosting• Education: Bachelor Information Systems Engineering from • Education: Bachelor in Mechatronics Engineering. Specialist Universidad Nacional and MBA candidate from Universidad in Telecommunications. de los Andes • Relevant experience: Trainee Ozka Lastik ve Kaucuk,• Relevant experience: Project Manager at Somos Más Facilitator at Elos Institutes and Director of Information Corporation, Materials’ Planning Specialist at Bavaria, and Systems at AIESEC in Colombia. Semi-finalist in Echoing Project Analyst at Banco de Bogotá. Semi-finalist in Echoing Green Fellowship Program. Green Fellowship Program. “When we achieve a communion between vision and“Im an enthusiast of technology as a tool to generate social commitment, just there in the middle lies action. And that is value. Today, Im inspired by life, respect and dignification what we need now, in a world in which each individual with of all beings. I dream of a world in which we recognize and his/her initiative or idea, is like a neuron connecting with honor the worth of each and every living being. Im other neurons to make an organism which decides what to energized by happiness and the freedom of riding bicycle.” be, how to be and where to go. That is my purpose by being part of this community of learning and practice which connects to innovate and pursue, and which takes advantage of its individual and collective potential to build the best world in which we wish to live today!”Carolina Salazar Germán ForeroHUB Host; HUB Events Manager; La Arenera Community Manager Hub Steering Team Member• Education: MSc in Human Ecology from Centre of Human Ecology-Edinburgh and University of Strathclyde. Bachelor • Education: Bachelor of Business Administration and of Marketing from Politécnico Grancolombiano. Economics, Universidad Nacional de Colombia• Relevant experience: Consultant to the Ministry of • Relevant experience: University lecturer, co-founder of Education of Colombia in the multi-sector national strategy several companies, currently President of Corpración La to promote healthy lifestyles; Coordinator of private sector Visión and Sociedad Ecoparques La Visión SAS partnerships, UN World Food Program – Colombia; Experience in community projects related to urban agriculture and fair trade; Experience in film production “I believe each one of us is an aspect of Love that Creates, and and multimedia design. that is why we are, inspirers, creators, inventors, producers and makers. If I find that I am happy and that my life seems“I dream of a society in which we gradually unite strengths to live enlightened, I feel I inspire those who enter my life. Let’s in community, and we recognize ourselves as a form of life, trust that all our inspirations, hopes, dreams and creativity like so many others on the planet, that live intimately come to our community, manifesting new material realities connected and interdependent. I want us to be willing to as miracles around us.” learn from others, acknowledging the difference and diversity of knowledge.” 5
  6. 6. Member of the team of founders have been working together HUB Bogota’s Feasibility Study > Team of FoundersFounders’ Background The team of founders has collective experience inPaula, Jennifer, and Vladimir met around 2003-2004 as business, public, and civil sectors. Two thirds lived andmembers and leaders of AIESEC in Colombia. worked in regions such as North America, Latin America, Africa, Europe, and Asia. All have relevantSubsequently, a part of the team (Paula, Pablo, Juan, education and experience in the Art of Hosting andCarolina, Germán, and Jennifer) co-founded La facilitating meaningful conversations and trainings. AllArenera and have been working as the organization’s have demonstrated commitment and capacity inSteering Team (Equipo Motor in Spanish). As such, they social entrepreneurship and leadership in a diverse sethave organized numerous events together, delivered of organizations. Finally, we know each other or havetrainings, and sold consulting projects to several clients been working together for a period that rangesunited by a common mission. between 2 and 10 years.Finally, Nicolas, Carlos, and Vladimir joined La Arenera Additionally, they are brought together by a commonas members between 2009 and 2010, and then joined vision of developing a community of socialthe HUB project in June 2011. That month, during the entrepreneurs and innovators that will enhance morefirst Art of Hosting Conference in Colombia, the HUB sustainable social and economic systems to improveproject was proposed as a collective effort among La the quality of life in our native Colombia.Arenera, Somos Mas (the organization led by Nicolas),and Fabricca (the organization led by Carlos) to makea bold contribution to strengthening the Colombian Management teamcommunity of social entrepreneurs and innovators. We’ve developed an initial management team structure of 4 members and will start hiring soon,Vladimir was heading Columbia Impact Investing conditional to negotiation of a HUB venue. This initialInitiative at the time and through it, assembled a team structure includes: One executive director andof graduate student consultants from the University to manager of support services to entrepreneurs (soon toprovide support with the feasibility study and project’s be split in two separate roles); one host (1/2 of time)strategic planning. Subsequently, Vladimir joined La and manager of marketing & sales (2nd half of time);Arenera’s Steering Team in September 2011. one host (1/2 of time) and manager of events (2nd half of time); and one administrative & financial assistant.After three meetings and several e-mail exchangeswith a seed funder, it was decided in December 2011 Then, conditional to cash flow, the structure ison Paula as executive director of the HUB project, and expected to evolve into one with full time staff toPablo, Vladimir, Nicolas and Carlos as the first four of deliver each area of the HUB value proposition:seven members of the future HUB Board of Directors. Community, Space, and Support Services. 6
  7. 7. Feasibility StudyHUB Bogota D.C. Executive summary THIS SECTION WILL COVER: THIS SECTION WILL COVER: •Underlying motivation to become part of the Hub •Underlying motivation to become part of the Hub network network •Vision for the Hub Bogota •Vision for the Hub Bogota Team of Founders •Desired impact •Desired impact •Give and gets in the global HUB Network •Give and gets in the global HUB Network •Short (2012) and mid-term goals (2017) •Short (2012) and mid-term goals (2017)Vision & Impact Community Building Community Positioning Space Finance & Fundraising Roadmap 7
  8. 8. Colombia is a key country for social entrepreneurship due to itssize of population, economy, and social development needs Colombia and its peer-group countries in world population and economy Population Nominal GDP 2010 GDP per cápitaRegion Country (million) (USD billion) 2010 (USD) Share of world economy Brazil 195 2.088 10.684 (GDP in USD billon) Mexico 111 1.040 9.400 Others Peer Group, $4.124 Colombia 46 288 6.333 Others World, $4.635Latin America Argentina 41 369 9.070 CIVETS, $2.388 Venezuela 29 241 8.254 7%4% 7% Chile 17 205 12.021 18% BRIC, $11.052 Peru 29 152 5.170 Mundo China 1.371 5.877 4.288 $63.130 India 1.225 1.608 1.313 Indonesia 240 707 2.946Asia Pacific Vietnam 88 106 1.205 65% OECD, $40.930 South Korea 48 1.015 21.059 Malaysia 28 238 8.373 Taiwan 23 432 18.738 Share of world population Egyps 81 192 2.367 (million in habitants)Africa South Africa 50 364 7.329 Others Peer Group, 441 Morocco 32 94 2.897 Others World, 1.966 CIVETS, 580Eastern Europe Russia 140 1.479 10.539and CEI 1) Turkey 76 732 9.673 8%  Ukraine 45 138 3.030 28%  Polond 38 469 12.263 Mundo Peer Group 3.953 16.898 4.265 6.940 42% Latin American & Caribbean 588 4.965 8.444 6%Key groupsof countries CIVETS 2) 580 2.388 4.112 15% BRIC, 2.931 BRIC 3) 2.931 11.052 3.771 OECD 4) 1.022 40.930 40.049 OECD, 1.022Source: IHS Global Insight. 1) CEI: Commonwealth of Independent States. Includes Azerbaijan, Armenia, Belarus, Georgia, Kazakhstan, Kyrgyzstan,Moldova, Russia, Tajikistan, Turkmenistan, Uzbekistan and Ukraine. 2) CIVETS: Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa. Term coined byThe Economist Intelligence Unit and HSBC. 3) BRIC: Brazil, Russia, India and China. Term coined by investment bank Goldman Sachs. 4) OECD: Organizationfor Economic Cooperation and Development. This report excludes from the OECD Chile, Mexico and Turkey, which are included in other groups. 8
  9. 9. Despite the country’s recent progress, it still has one of the highest poverty rates and one of the highest social inequalities in the World Poverty incidence and inequality in Colombia and selected developing countries (Country: millions of poor) Latin America Asia Pacific Eastern Europe Africa Población bajo línea nacional de pobreza (%) 0,70 54,2 Chile: 2 Millions Mexico: 9GINI Coefficient* (2000-2010) of poor Colombia: 13 South Africa: 21 0,60 0,58 Brazil: 25 Peru: 5 0,50 Argentina: 3 India: 926 Venezuela: 3 Indonesia: 144 Morocco Turkey: 6 0,40 Malasyia: 3 Russia: 3 Vietnam: 43 China: 498 Poland: 1 0,30 Egypt: 15 Ukraine: 1 0,20 27,9 Poverty incidence by income: population with less than U$2 per day 2009 (%) * GINI Coefficient: a measure of income distribution ranging between zero 2002 2009 (Estimate) and one. 1,00 corresponds to perfect inequality and zero to perfect equality.Source: UN Human Development Report, World Bank – World Development Indicators, CIA – World Fact Book, Colombia’s National Monitoring and Evaluation System – SINERGIA
  10. 10. Size & urgency of Colombian social & environmental problems requiremore & better social entrepreneurship – the HUB can play a key role HUB Bogota’s Feasibility Study > Vision & ImpactThe case for social entrepreneurship non-profit organizations in Colombia, 12,000 of themand a HUB in Bogota based in Bogota. Several sources indicate that anWith 46 million inhabitants, Colombia is the second important number of non-profits (between 30% and 50%most populated country of South America after Brazil of registered ones) are still not formally registered.and its capital city Bogota hosts 7 million of them. Whatjustifies a Hub here are the daunting social and The for-profit social enterprise segment is still nascent inenvironmental challenges the country and its capital the country but developing at an interesting pace. Acity face, as well as the possibility of making key indicator of this is the recent birth in Colombia ofcontributions to solve them. impact investing, the activity focused on investing in and supporting social enterprises. The first impactIn the social front, according to the country’s National investing fund “Fondo Inversor” was started in 2010 andPlanning Department, Colombia has more than 40% of did its first investment in 2011. Likewise, the first Socialits population under the national poverty line; a Gini Investment Bank was created in 2011 by a formercoefficient of 0.58 indicating one of the worst income executive director of Bogota’s investment promotiondistributions in the world; 10% unemployment rate and agency. Furthermore, National Government led the34.6 intentional homicides per 100,000 inhabitants, both creation of the Social Innovation Fund to startamong the highest in Latin America. operations in 2012. Likewise, international impact investors such as Bamboo Finance and Blue OrchardIn the environmental front, Colombia faced in 2010 and have set up a Colombian operation in 2012, and2011 some of its worst floods in its history, and currently international funds such as ACUMEN and IGNIA arefaces degradation of water sources, and a 0.17% exploring partnership opportunities to invest inaverage deforestation rate per year. Colombian social enterprises focused tackling extreme poverty or providing critical goods and services to theThese challenges both highlight the need for more and country’s bottom of the pyramid.better social entrepreneurship in the country. Finally, Colombian National Government declaredNon-profit and social enterprise sectors in Colombia poverty reduction as its main development goal in termFortunately, in the face of such challenges Colombia 2010-2014, and there is a growing awareness andand Bogota count with a significant and dynamic civil willing of Colombian civil society members tosociety sector including non-profit organizations; an contribute solving social and environmentalemerging sector of social enterprises; and growing challenges.awareness of citizens and business towards socialissues. In this context, a HUB in Bogota can play a central role in inspiring, connecting, and supporting key players inAccording to Colombian social sector expert Rodrigo 10 Colombia’s social entrepreneurship and development.
  11. 11. La Arenera, Somos Mas, and Fabricca envision HUB Bogota as a vibrantcommunity and spring board of solutions for Colombia and beyond HUB Bogota’s Feasibility Study > Vision & Impact “Life is about the people you meet, and the things you create with them. So go out and start creating.” – The Holstee Manifesto (2009)HUB Conception • Space – create a meeting and co-working spaceWe understand a HUB both as a community and with convenient location, appropriate infrastructurephysical center that hosts and supports socialentrepreneurs and innovators committed to contribute and affordable plans for social entrepreneurs, thatto a better Colombia and a better world. inspires and materializes social innovation and new ways of social organization.We see the HUB in Bogota as part of a broader effort • Services – channel a range of support and sharedled by La Arenera aimed at developing, hosting, and services that contribute to strengthen andmobilizing a vibrant community of learners andpractitioners of social innovation and entrepreneurship accelerate the development of social enterprisesthrough three programs: Social Innovation Community, and organizations.Social Innovation Solutions, and Social Innovation Hub. Likewise, we are inspired by the possibility of hosting more than 300 social entrepreneurs and innovators,Our Inspiration and the impact we can make together. By the potential of becoming a springboard of newWe are inspired by a broad mission of contributing to approaches and solutions to the social andthe generation of a transformational force that creates environmental challenges that Bogotá, its region,and promotes sustainable social and economic and Colombia are facing. Finally, we are alsosystems, based on dignity of human beings and inspired by the opportunity of taking part andaffirmation of life. Then, more specifically, we are contributing to a global community and network of more than 3,000 entrepreneurs hosted by Hubsinspired by three objectives related to the HUB: around the world and playing a role of leadership and contribution to the development of the Hub•Community – develop a vibrant and creative Network in Latin America.community of social entrepreneurs, innovators andorganizations that contribute to solve Colombia’s mostintractable problems. 11
  12. 12. Besides the Community and Space, we seek to gradually developa comprehensive set of support services for social entrepreneurs HUB Bogota’s Feasibility Study > Vision & Impact Support Area Description Hub services & initiatives Through a network of •Mentorship and coaching Advise Advise advisors the Hub will offer •Specialized technical advise social entrepreneurs with •Advise on generation of mentorship and specia- business models and plans lized advisory services •Management consulting Hub Bogota will develop •Conferences Training partnerships to offer •Workshops Training relevant training in topics •Seminars of interest to social •Boot Camps entrepreneurs •Accelerator Program Hub Bogota will organize •Fundraising information Access to Access to and facilitate social •Fundraising trainings Finance Finance entrepreneurs’ •Business plan competitions, connection with potential pitch, and feedback series sponsors and investors •Impact investing fund Hub will officer shared •Online community Shared Shared services that will facilitate •Accounting & legal Services Services entrepreneurs to focus in •Messaging the core business •Printing and fax Source: HUB San Francisco A series of cultural and •Open spaces, world cafés Socio-cultural Socio-cultural social events will be •Art gallery events events hosted in the Hub to •Music concerts promote networking, fun, •Cinema and new friendships •Cocktails 12
  13. 13. Collectively, the team has visited and drawn lessons from more thannine HUBs in North America, Europe, Africa, and Latin America HUB Bogota’s Feasibility Study > Vision & ImpactLessons learned from other HUBs On the other hand, we are worried about the fact thatPaula was a host of Hub Sao Paulo for several months. a significant number of Hubs around the world after 5Likewise, other co-founders visited Hubs in North to 6 years are still not financially sustainable, that someAmerica, Europe, Africa, and Latin America. Finally, of them still lack of a vibrant community, and that thewe’ve done benchmarking of HUB Amsterdam, Madrid, Hub community in Latin America is still limited.Sao Paulo, and Milan, as well as the Centre for SocialInnovation in Canada and Oasis in Finland. Envisioned contributions to the HUB Network HUB Bogota’s team bring to the Global HUB NetworkWe were impressed by HUB Bay Area’s 800+ significant experience and track record in building amembership; its two-floors including not only vibrant social entrepreneurship community, consultingentrepreneurs but also impact investors and relevant to public and private organizations, and a bold desireservice providers; their strong "Hub Ventures" to contribute to the development of the HUB Networkaccelerator program; and their valuable connections in Latin America.to the Social Capital Markets Conference, SOCAP. First, we’ve successfully built and nurtured a communitySecondly, we liked Sao Paulo’s HUB School, simple of 1,300 learners and practitioners of social entre-governance structure, sustainability, and leadership in preneurship and innovation during the last three years;supporting other Hubs in Belo Horizonte, Rio and Porto facilitated and trained 60 leaders in the Art of Hosting;Alegre. and hosted multiple activities every past month since 2009, to ensure that La Arenera’s community remainsThirdly, we valued Amsterdam’s mixed governance connected and vibrant. The following section providesstructure including a foundation and a social a bit more detail on this community.enterprise, its hosting and community building activities(including concerts, sexy salad, and many others), and Second, we’ve delivered consulting projects applyingits active role in disseminating the Art of Hosting. Art of Hosting tools to multi-stakeholder dialogues and public policy design exercises reaching 3,000+ bene-Finally, we were impressed by Madrid’s corporate ficiaries and clients in public, business, and civil sectors.sponsorship programs and creative use of the space fordifferent types of events. Finally we want to share our experience and strengths with members of the global HUB Network withIn all cases, we were amazed specially by the preponderance on those aiming at strengtheningwonderful community of social entrepreneurs and communities of social entrepreneurship and innovationindividuals they’ve been able to attract and nurture. in Latin America, a region close to our hearts, culture, and dreams for contribution. 13
  14. 14. Short-term (2012) and long-term (2015) goals for HUB Bogota HUB Bogota’s Feasibility Study > Vision & Impact > Desired Impact, KPIs and GoalsOur aim with HUB Bogotá is to contribute to increase the number, quality, and impact of social entrepreneurs inColombia. It will do so by providing current and aspiring social entrepreneurs with a collaborative community andenvironment, excellent co-working space, and top quality support services by professionals (e.g. coaching,training, and administrative services).HUB Bogota will manage itself for results. To measure impact, the projects steering team has agreed on thefollowing set of strategic and operational indicators, as well as specific goals for years 2012 through 2017:Scorecard & Key Performance Indicators Baseline Goals 2012-2017HUB BOGOTA 2009 2010 2011 2012 2013 2014 2015 2016 2017Strategic indicators# Hub paying members - - - 136 166 196 226 256 271# members registered in LaArenera.org 124 421 1,070 1,300 1,700 2,200 2,800 3,500 4,000# participants in learning events (e.g. Hub School) 550 690 605 1,000 1,500 2,000 2,500 3,000 3,500# beneficiaries of Hub members’ projects (million) - - 1.0 1.1 1.2 1.4 1.6 1.8 2.0% growth in members’ beneficiaries and revenues - 10% 10% 10% 10% 10% 10%# of joint projects generated 6 12 18 24 30 30 30% members say the Hub adds high/vh value to them - - - 80% 80% 80% 80% 80% 80%Key operating indicators% used capacity of co-working space - - - 45% 55% 65% 75% 85% 90%% used capacity of meeting rooms / event rooms - - - 25/11% 30/16% 35/20% 40/24% 45/28% 50/30%# active support services - - 5 12 15 15 15 15 15% members using support services - - - 20% 30% 40% 40% 45% 45%# of funded Hub Scholarships (each HUB 50 for 1 year) - - - 10 15 15 20 20 20 14
  15. 15. Feasibility StudyHUB Bogota D.C. Executive summary THIS SECTION WILL COVER: THIS SECTION WILL COVER: •HUB Bogota’s ideal community •HUB Bogota’s ideal community •Attracting community members •Attracting community members •Building a vibrant community of true •Building a vibrant community of true Team of Founders “change makers” “change makers”Vision & Impact Community Building Community Positioning Space Finance & Fundraising Roadmap 15
  16. 16. HUB Bogota will draw from and contribute to La Arenera’s socialentrepreneurship community in various cities – potential for future HUBs HUB Bogota’s Feasibility Study > Community Building > La Arenera’s Membership 1100 CAGR** VAR ANUAL VAR TRIM. Location 09-Q3 10-Q3 11-Q2 10% of members a 11-Q3 a 11-Q3 a 11-Q3 961 International 29% 102% 8% 818 5% 60% 60% Other local 47% 182 9% cities 543 Barranquilla n.a. 175% 0% 399 421 75% 349 Medellín n.a. 90% 19% 204 124 Cali n.a. 2.300% 78% 8711 19 Bogotá 55% 133% 17% Total 60% 134% 17% ** CAGR: Compounded Average Growth Rate At current growth rates, La Arenera can reach 2,000 members by the end At current growth rates, La Arenera can reach 2,000 members by the end of year 2012, covering 26 municipalities of Colombia y 54 cities in 26 countries of year 2012, covering 26 municipalities of Colombia y 54 cities in 26 countries Source: La Arenera online http://www.laarenera.org/. * La Arenera’s Estimate.
  17. 17. La Arenera sees the creation of HUBs as key part and contributor to a broader mission to develop sustainable social & economic systems La Arenera in brief La Arenera contributes to the generation of a transformational force Values Mission that creates and promotes sustainable social and economic systems, based on dignity of the human being and affirmation of life Values Unconditional Unconditional Co-creation Co-creation Integrity Integrity acceptance acceptance Sustainability Sustainability Flexibility Flexibility of the other of the other Develop aacommunity Develop community Lead the community Lead the community Create HUBs that promote Create HUBs that promote Goals Goals of learning and practice that of learning and practice that towards specific projects towards specific projects alternative ways of work, mutual alternative ways of work, mutual inspires and materializes inspires and materializes that use participatory leadership that use participatory leadership support, and social organization support, and social organization social innovation social innovation for social innovation for social innovation Social Innovation Community Social Innovation Solutions Social Innovation HUBsand projects Programs 1. LaArenera.org 1. Design and facilitation of 1. Host communities 2. Art of Hosting (AoH) participatory leadership 2. Co-working & open spaces 3. Solidarity Economy “EcoSol” processes for client 3. Meeting and event rooms 4. Social Innovation Week “SIW” organizations 4. Shared services 5. Happy hour “Pola Social” 2. Innovation labs 5. Entrepreneur support services 1. # members in LaArenera.org 1. # Hub members 2. # organized learning events 1. # certified AoH* Hosts 2. % use of co-working space Indicators 3. # participants learning events 2. # days / projects delivered 3. # hours sold of rooms 4. # participants in social events 3. # participants projects 4. # active support services 5. # deals executed in “EcoSol” delivered 5. # of joint projects generated 6. % active members 4. Client satisfaction (1-10) 6. Hub members satisfaction 7. Members satisfaction 7. % growth in members’ BR* *BR: Beneficiaries and revenues 17
  18. 18. HUB Bogota will host players in all stages, core, and support areas relevant to the development of social entrepreneurship and impactDevelopment stages of Support & service providers tosocial projects & enterprises Core Outcome & Impact Areas social projects & enterprises Coaching, mentorship, consulting and training Social Enterprise, CSR, and SME Development Social, Community, and Political Development Growth Social Enterprise, CSR, and SME Development Social, Community, and Political Development Environmental and sustainable development service providers Environmental and sustainable development and mature e.g. Uniandes IESO Personal and leadership development Personal and leadership development stages Accelerator and support programs for social entrepreneurs e.g. Ashoka Start-up stage (first 3 years) Impact investors and financial services providers e.g. Bamboo Finance Seed or idea Administrative & support stage service providers e.g. Legal, Accounting, Comms., Mkt Research We understand social entrepreneurship and enterprises as the development of projects and We understand social entrepreneurship and enterprises as the development of projects and organizations that, by design, aim at achieving social and/or environmental outcomes & impacts organizations that, by design, aim at achieving social and/or environmental outcomes & impacts 18
  19. 19. By promoting La Arenera + HUB jointly, we envision the leadingplatform for social entrepreneurship and innovation in Colombia HUB Bogota’s Feasibility Study > Community Building• 1,300 members in Colombia • 4,000 members and 29 HUBs across five continents,• Community hosting and development in Colombia projected to grow to 80+ HUBs in the next 5 years • Two hosts for the HUB Bogota • Lessons learned, communities of practice, and sister- • Two members HUB Bogota’s board of directors HUB to provide support in key areas such as • Participatory leadership and AoH Program • Strategic and financial planning • Monthly Social Entrepreneurship Happy Hour • Community development• Fundraising for HUB Bogota, including: • Co-working space design • USD 75,000 from Halloran Philanthropies • Events and programs • USD 10,000 for Hub Scholarship Program • Leads for additional fundraising• Support in member recruitment and communication • Operations • Promotion of HUB Bogota in website & bulleting • Global brand name and recognition • Organization of launch event • Opportunities to develop international initiatives Brands and Governance of La Arenera and HUB Bogota will remain separate, but will Brands and Governance of La Arenera and HUB Bogota will remain separate, but will be promoted as a joint platform for social entrepreneurship in Colombia be promoted as a joint platform for social entrepreneurship in Colombia 19
  20. 20. Currently, 1/4 of La Arenera’s 1,300 member community is comprisedby full-time social entrepreneurs in different stagesHUB Bogota’s Feasibility Study > Community Building > Who is the current community? Development stage Learners – interested of La Arenera’s social entrepreneurs 30% in the topic but social entrepreneurship IS NOT their main economic activity Seed and early La Arenera stages 1,300 (First two years members Practitioners – Social of operation) ¿Is social 25% entrepreneurship entrepreneurship ~325 IS their main your main economic activity economic activity? Growth stage (2 or more years) Mature stage (more than 3 years) 45% Did not answer the question* * A high proportion of members did not answer the question because it was only introduced in La Arenera’s online registration on March 2011 - the number and proportion of members engaged in social entrepreneurship is greater with high probability. Source: Comunidad de La Arenera en Internet http://www.laarenera.org/. Update: November 24, 2011
  21. 21. and their areas of interest already cover core impact areas envisioned for HUB Bogota HUB Bogota’s Feasibility Study > Community Building > Who is the current community?Category Issues of interest Frequency %1. Personal, Personal, spiritual and leadership development 350 50%and leadership Arts and culture 404 58%development Creativity and innovation 31 4% Social and community development 370 53%2. Social, Application of IT to social and environmental challenges 184 26%community, and Citizenship participation and political development 35 5%political Collaboration, participatory technologies, and networking 21 3%development Education and empowerment 19 3% Conflict solution and peace building 6 1% Environmental and sustainable development 398 57%3. Environmental Design, architecture, housing, construction, and urban development 54 8%and sustainable Enhancement of outdoor activities: walking, hiking, riding bycile, etc. 26 4%development Healthy and sustainable life stile 21 3% SME development and entrepreneurship 342 49%4. Social Marketing, communication and advertisement 177 25%enterprise, CSR, Corporate Social Responsibility (CSR) 53 8%and SME Social enterprise, inclusive businesses, and fair trade 22 3%development Rural development 6 1% Impact investing and microfinance 5 1%Other interests 123 18%Total number of members that answered the question on July 2011 (81%) 696 Source: La Arenera online http://www.laarenera.org/. Update: July 19, 2011
  22. 22. In the last three years La Arenera hosted 25 events engaging 1845 participants in dialogues about solutions to development issues HUB Bogota’s Feasibility Study > Community Building > Activities done so farYear Events organized Participants Partner Innovation and entrepreneurship congress 350 Business Administration School EAN Turning SENA an environmentally sustainable institution 200 National Learning Service SENA2009 Green markets potential 50 Sustainable Action Fund Sub-total 550 Vision for the Caribean Region (11 workshops) 280 Universidad Tecnológica Bolivar UTP Social innovation lecture 300 Universidad Central2010 Living a green life workshop 80 International Environmental Fair The Hub’s contribution to social entrepreneurship 30 The Hub Sao Paulo Sub-total 690 What can the world learn from Bogota? 80 University generating changes the country needs 60 Universidad de los Andes How to generate community in big cities? 150 TED and Universida de los Andes Workshop of dreams and gifts 50 Alianza Social Uniandina How to cooperate in overcoming extreme poverty 80 Presidential Agency Accion Social2011 Developing inclusive businesses 35 Universidad Icesi Towards an open door organization 20 Somos Más Contribution of volunteerism to solve extreme poverty 100 World Summit of Youth Volunteering First meeting of the The Art of Hosting in Colombia 30 The Art of Hosting Sub-total 605Total number of participants 1845 Source: La Arenera’s Steering Team estimates. 22
  23. 23. “LaArenera.org” was created to keep members connected, while “TheInfiltrates” and “Solidarity Economy” promote cooperation HUB Bogota’s Feasibility Study > Community Building > Activities done so far LaArenera.org •1300 members* •Advanced members’ search tool •101 forums and 55 groups by areas of interest •Monthly bulletin and events calendar keep members informed •Resource section shares knowledge and useful links on social entrepreneurship and innovation The Infiltrates “Los Infiltrados” •Offer opportunities for members to experience and provide feedback to each others’ projects and organizations Solidarity Economy “Ecosol” •Online platform promoting exchange of goods and services among members (in testing stage) * Update: March, 2012 23
  24. 24. Likewise, 60 leaders have been trained in the Art of Hosting* and acommunity of participatory leadership was created HUB Bogota’s Feasibility Study > Community Building > Activities done so far• 60 entrepreneurs were trained in the Art of Hosting* (AoH) in 2011 and 2012, through 3- day training workshops and follow-up practical training seminars• Techniques covered included Circle, World Café, Open Space, and Theory U• Participants formed the first community of hosts in participatory leadership. It will support each others development of AoH skills and their application to different organizacions and communities * Training in The Art of Hosting deepens competency and confidence in hosting group and participatory processes such as Circle, World Café and Open Space, among others. See more details at: http://www.artofhosting.org/theart/
  25. 25. Already more than 35 organizations representing more than 60people expressed interest in becoming members of HUB Bogota HUB Bogota’s Feasibility Study > Community Building > Prospective MembersFollowing is a list of 35 organizations that have already expressed interest in taking part of HUBBogota and have chosen a specific membership plan. Click on their names to visit their websites. Dedicated Office in HUB Bogota Social Enterprise, CSR, and SME Development 1. BAMBOO FINANCE 1. BID NETWORK 2. BLUE ORCHARD INVESTMENTS 2. BUENA NOTA 3. ECONEXUS 3. INTEGRATION TO ADVANCED MARKETS, CiMa 4. INNOVATIONS FOR POVERTY ACTION 4. CORPORACIÓN VIDA 5. LA ARENERA 5. ENTREPRENEURS COLOMBIA 6. TECHNOSERVE 6. FUDESA 7. FUNDACIÓN LATINNO Personal & Leadership Development 8. GOOD BRAND 1. ANA MARÍA ARISTIZÁBAL 9. KATHARSIS 2. ENFOQUES INTEGRALES SAS 10. NEXTBILLION 3. QUO STUDIO / ARTEYOGA 11. RED EMPRESARIAL VANGUARDIA Social, Community, and Political Development Environmental and Sustainable Development 4. CONECTANDO SONRISAS 12. AMIGOS DE LA MONTAÑA 5. DIGERATI 13. CENTRO DE ECOLOGÍA Y DESARROLLO, KATE 6. FÁBRICCA 14. COMUNIDAD EDUCADORA ECOO SOSTENIBLE 7. FUNDACIÓN AZUL 15. ECONEXUS 8. FUNDACIÓN PROSURGIR 16. GLOBAL WARNING AGENCY 9. GOLDEN COLOMBIA 17. MEJOR EN BICI 10. LA ARENERA 11. SOMOS MÁS
  26. 26. Feasibility StudyHUB Bogota D.C. Executive summary THIS SECTION WILL COVER: THIS SECTION WILL COVER: •Local market situation •Local market situation •HUB Bogota’s competition & potential partners •HUB Bogota’s competition & potential partners •Competitive positioning in the market place to •Competitive positioning in the market place to Team of Founders attract the right people and networks. attract the right people and networks.Vision & Impact Community Building Community Positioning Space Finance & Fundraising Roadmap 26
  27. 27. HUB Bogota’s team conducted benchmarking, competition, market, &financial analyses with help of Columbia Impact Investing Initiative CI 3 HUB Bogota’s Feasibility Study > Community Positioning* CI3 is Columbia University’s Impact Investing Initiative. Learn more at http://www.ci3.us/
  28. 28. HUB Bogota’s competition includes co-working spaces, supportprograms for social entrepreneurs, and homes of entrepreneurs HUB Bogota’s Feasibility Study > Community PositioningDomestic competition Location of HUB Bogota’s CompetitionWe’ve divided HUB’s competition in three segments:1.Organizations offering co-working spaces – forentrepreneurs in general or entrepreneurs in a specificsector or development stage2.Organizations offering social entrepreneurship trainingand support programs – these include civil sectororganizations and academic institutions3.Homes of entrepreneurs – our market perceptionsurvey indicates that over 56% of early stageentrepreneurs in Bogota currently work from homeWith regards to the first segment, organizations offeringco-working spaces, the team mapped 17 sites (seemap on the right), most of them located in the North ofBogota, between 52nd and 130th Streets, which includegenerally expensive neighborhoods. Likewise, theirareas generally don’t exceed 500 square meters.Five competitors where studied in depth in thissegment: Regus, Smart Business Solutions, PrimeHolding, HUB Bog, and ParqueSoft. These players canbe further divided in two sub-segments based on theirsector focus and nature.The first sub-segment does not have a sector-specificfocus and basically receive any entrepreneur that canpay their fees. Organizations here include Regus, SmartBusiness Solutions, and Prime Holding. They are run veryprofessionally and Regus, for example, is a significantinternational player, with presence in 85 countries and1,000 sites. They’ve been very successful in Bogota, and 28
  29. 29. The first segment of competitors is comprised by co-working spaces HUB Bogota’s Feasibility Study > Community Positioningrecently opened their fourth site. Due to high demand Nevertheless, all of them have important issues:they have limited availability. •Technoparque’s main source of entrepreneurs is SENA, which is the country’s main organization for technicalLess prominent and facing mid-level used capacities and vocational training. Average preparation ofare Prime Holding and Smart Business Solutions, which entrepreneurs, company productivity, and companyhave a significant part of their areas for dedicated survival rates without subsidies are relatively low.offices (between 9 and 25 of them in one location). •Parquesoft started years ago experiencing with selling contracts to private corporations and subcontractingThere are three main differences of these players with with its entrepreneurs. Nevertheless, the lack ofthe HUB’s value proposition. First, they don’t focus on professional management and dissatisfaction of onesocial entrepreneurs and organizations. Second, they big client in the Telecommunications’ sector almost ledprovide little or no importance to hosting the Parquesoft to go bankrupt. The number ofcommunity of entrepreneurs that occupy their sites. This entrepreneurs hosted dropped dramatically.is reflected in the fact that each entrepreneur there is •Hub Bog has 500 square meters and capacity to host“taking care of its own business” and there are 120 entrepreneurs. It reached a peak of 70 hostedpractically no communitarian activities. Finally, their entrepreneurs in 2011 and on February 2012 had aboutpricing model for office space is based on fixed 36 (30% used capacity). It has strengths in themonthly fees and their price ticket for mobile offices, organization of events (the main current source ofvirtual offices, and meeting rooms is comparatively revenue), but is facing challenges in attracting andhigh. retaining paying entrepreneurs.On the other hand, there is the sub-segment of The key difference of HUB Bogota with this sub-segmentincubators of technology-based micro and small is their focus on technology-based, for profitenterprises. These include Tecnoparque, Parquesoft, companies. Another key difference is the character ofand Hub Bog. Tecnoparque is financed with their spaces: they don’t reflect sustainability or culturalgovernmental resources coming from the National values of the community, and were not designedLearning Service (SENA). Parquesoft is a non-profit through a collaborative process involving itsorganization, and Hub Bog is for profit. users/members. These are two key aspects of HUB Bogota.Different to the first sub-segment, these organizationsdue tend to provide entrepreneurs with support Similarities include, their intent to provide supportservices including mentorship, training, technical services to entrepreneurs, as well as activities toadvise, and connection with potential investors. promote cooperation among them. 29
  30. 30. Comparative analysis of Key Co-Working Spaces in Bogota (part 1/2) Overview of Competition Regus SBS Prime HoldingAddress Cra. 18 con 86A Calle 94 con 11 A Calle 125 con 19For profit? Yes Yes Yes IT companies, Independent workers, IT companies,Profile of hosted entrepreneurs commercial SMEs, sales reps, business commercialand companies representatives, and agents with residence representatives, and others different than Bogota others¿Require subscription? Yes: na No Sí: $170.000 Dedicated offices Yes 9 25Office, Shared offices Yes Yes Yesmeeting, and Virtual offices Yes Yes Yeseventsservices Meeting rooms Yes: na 3 3 Events rooms Yes Maximum 20 people Maximum 40 people Secretary Yes Yes Yes Printing Yes Yes Yes Fax Yes Yes YesShared Messenger Yes Yes Yesservices Photocopy Yes Yes Yes Parking Yes No Yes Surveilance Yes Yes YesFuente: Investigación secundaria, visitas personales y entrevistas del equipo de entrega
  31. 31. Comparative analysis of Key Co-Working Spaces in Bogota (part 2/2) Overview of Competition Regus SBS Prime Holding Dedicated office USD 425 na USD 585Prices of office Shared office USD 295 na nameetingrooms and Virtual office USD 107 to 120 USD 50 naevent rooms’ Meeting room (h) USD 50 USD 25 naprices Events room (h) USD 50 USD 30 na Secretary USD 5 (15 minutes) na na Accountant na na na Printing USD 0.5 per page b/w na na Fax USD 0.5 + cost of call na naPrices ofshared Messenger USD 4 to 6 na naservices Photocopy USD 0.1 per page na na Banding pages USD 3 (1-100 pages) na na Parking USD 125 per month na na Scanning USD 1 (per page) na na Known globally: presence The offer discounts of 5 toMain strengths in 85 countries and 1,000 15% for contracts over Convenient location locations 3 months. Cafeteria inside. Limited availability of Very unpersonal andMain weaknesses spaces due to high doesn’t have a parking High price demand space Fuente: Investigación secundaria, visitas personales y entrevistas del equipo de entrega
  32. 32. The second segment of competitors is comprised by organizations andprograms offering training and support to social entrepreneurs… HUB Bogota’s Feasibility Study > Community PositioningThe second segment of HUB competitors, organizations 6. Centre for Social Innovation and Social Innovationoffering training and support programs to social Fund of the Colombian Agency for Extreme Poverty.entrepreneurs, are all perceived by the HUB team as These two centers have a focus on identifying andpotential partners. The main players in this segment providing funding to social innovations that mayinclude: have a significant impact in those Colombians under extreme poverty conditions and affilitated1.Social Arm of Los Andes University’s Alumni with the Governmental Program Familias en Accion.Association (Alianza Social Uniandina). Their programfocuses on providing mentorship and advise to alumni Different to Alianza Social Uniandina, the HUB won’to f the University that want to become social have a focus on a specific university. It will welcomeentrepreneurs. They are now HUB partners. committed social entrepreneurs from any university or background. Unlike IESO the HUB won’t focus2.Initiative for Social Entrepreneurship of Los Andes exclusively on the academic angle of socialUniversity (Iniciativa de Emprendimientos Sociales - entrepreneurship. The HUB will probably partner withIESO). Their focus is on research, teaching, and opinion IESO to channel relevant training to socialgeneration around social entrepreneurship. entrepreneurs, but will then complement that training with a value proposition oriented to social3.Ashoka Colombia entrepreneurship practice.Highly selective program. It only selects about 2-4Ashoka fellows to support in Colombia per year. Compared to Ashoka and Compartamos con Colombia, the HUB won’t be as selective. The HUB will seek to attract Ashoka Fellows, but will also4.Let’s Share with Colombia (Compartamos con target entrepreneurs in seed and early stages,Colombia). This organization channels pro-bono ideally with the commitment and potential to scale-consulting services from the top firms like McKinsey and up. Likewise, compared to most existingCompany to growth and mature organizations with entrepreneurship programs, the HUB will focus onhigh social impact. They are very selective and don’t social entrepreneurs, either for profit or non-profit,work with early stage entrepreneurs. and not just those exclusively focused on technology-based commercial endeavors.5.Entrepreneurship Programs such as Young People witha Business (Jóvenes con Empresa), Bavaria Finally, the HUB will put as much effort as theEntrepreneurs y Bogota Starts-Up (Bogotá Emprende). Government’s Social Innovation Center and Fund inThese programs focus on supporting for-profit seed and identifying social innovations, but will go beyond inearly stage entrepreneurs. hosting their creation and development, not just in 32 funding existing ones.
  33. 33. … and the third segment is comprised by entrepreneurs’ homes and small offices – 56% work from home and 21% from a dedicated office HUB Bogota’s Feasibility Study > Community Positioning Interviewees 100% Interviewees not dedicated Office use per month (hours) dedicated to social 100% to socialOffice option entrepreneurship entrepreneurship 4o 4o En 1a3 más Sub- En 1a3 más Sub- 19% 19% idea años años total idea años años total TotalI work fromhome 100% 58% 27% 48% 100% 63% 63% 73% 56%I share anoffice 0% 13% 27% 18% 0% 13% 0% 5% 14% 29% 29%I have adedicatedoffice 0% 17% 32% 22% 0% 13% 38% 18% 21%Other option 0% 13% 14% 12% 0% 13% 0% 5% 10% 33% 33%Total 100% 100% 100% 100% 100% 100% 100% 100% 100% Given that 77% of respondents work from home or a dedicated Given that 77% of respondents work from home or a dedicated office, the HUB’s “Co-Working Space Proposition" 19% 19% office, the HUB’s “Co-Working Space Proposition" is a new way of working for most Colombian entrepreneurs is a new way of working for most Colombian entrepreneursSource: Market Perception Research, 2011. Answered questions 73. Reference date: August 27, 2011
  34. 34. In this context, HUB Bogota will focus on becoming a cluster of social entrepreneurship, hosting players in all stages, core, and support areasDevelopment stages of Support & service providers tosocial projects & enterprises Core Outcome & Impact Areas social projects & enterprises Coaching, mentorship, consulting and training Social Enterprise, CSR, and SME Development Social, Community, and Political Development Growth Social Enterprise, CSR, and SME Development Social, Community, and Political Development Environmental and sustainable development service providers Environmental and sustainable development and mature e.g. Uniandes IESO Personal and leadership development Personal and leadership development stages Accelerator and support programs for social entrepreneurs e.g. Ashoka Start-up stage (first 3 years) Impact investors and financial services providers e.g. Bamboo Finance Seed or idea Administrative & support stage service providers e.g. Legal, Accounting, Comms., Mkt Research We understand social entrepreneurship and enterprises as the development of projects and We understand social entrepreneurship and enterprises as the development of projects and organizations that, by design, seek to achieve social and/or environmental outcomes & impacts organizations that, by design, seek to achieve social and/or environmental outcomes & impacts 34
  35. 35. Aiming at gradually building a unique position in the market of earlyand growth stage social entepreneurship, both for and non-profit HUB Bogota’s Feasibility Study > Community Positioning (mission and stage) Mature Stage Growth Stage Early Stage Seed Stage For-profit businesses CSR For-profit social Non-profit social with no CSR businesses entrepreneurship entrepreneurship*Hub Project’s Market Perception Survey, August 2011. Question answered by 61 and omitted 21. f

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