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  1. 1. NESsT Venture Fund A philanthropic investment fund for emerging market countries Bratislava – June, 2004 NESsT
  2. 2. The NESsT Venture Fund is the only international philanthropic investment fund dedicated to supporting social enterprise in emerging market countries. The NESsT Venture Fund provides financial and capacity-building support to a select portfolio of social enterprises intended to further the financial sustainability and further the mission impact of the nonprofit parent organization. NESsT Venture Fund: Purpose
  3. 3. NESsT Venture Fund: Investment Strategy <ul><li>Identify/ Screen proven or promising nonprofit organizations; </li></ul><ul><li>Help prepare venture team through rigorous feasibility/business planning guidance and support </li></ul><ul><li>Invest in and add value to a portfolio of social enterprises through multi-year financing and capacity- building assistance; </li></ul><ul><li>Measure impact and document the financial and social return on investment of the portfolio; </li></ul><ul><li>Develop a sustainable capitalization strategy for providing on-going support to future entrepreneurs; </li></ul><ul><li>Document and share learnings internationally. </li></ul>
  4. 4. <ul><li>The NESsT Venture Fund supports social enterprises at different stages of the enterprise development process: </li></ul><ul><li>an “early stage” portfolio of social enterprises requiring rigorous feasibility/business planning support; </li></ul><ul><li>a “later stage” portfolio requiring multi-year financing and capacity- building assistance to start-up or expand a social enterprise; </li></ul>NESsT Venture Fund: Portfolios
  5. 5. NESsT Venture Fund: Early Stage Portfolio 2 3 Feasibility Study Business Plan 1 Pre-Feasibility Study 1. Pre-Feasibility: NESsT works with selected groups to assess general feasibility of social enterprise idea(s). 2. Feasibility: NESsT works with selected groups to assess full feasibility, organizational and financial readiness for their proposed enterprise. 3. Business Plan: Selected groups receive small “venture planning grants” (approx. US$1500-2500 and NESsT technical assistance to develop detailed business plans. Business Plan Defense: Groups present and defend their plan to a Business Advisory Circle convened by NESsT. Early Stage Portfolio Enterprise enters later stage portfolio Later Stage Portfolio
  6. 6. Portfolio Capital Investments Package of financing tailored to organization/enterprise needs; Performance Management Venture Planning Grants Organizational Development Grants NESsT Staff Capacity-Building Close, tailored technical assistance from NESsT and strategic partners Business Advisory Network NESsT Entrepreneurs- in-Residence (NESsTERs) NESsT Investors Circle Enterprise-specific Capacity Grants (& Loans) Shared learnings from others in portfolio Strategic Alliances NESsT leverages a variety of financial and capacity-building resources to support our later stage portfolio over a multi-year period: NESsT Venture Fund: Later Stage Portfolio Technology Support
  7. 7. Portfolio NESsT Investors Circle Institutional Members Individual Members Institutional Members: Corporations, foundations, and other organizations providing financial and/or in-kind support to NESsT. Individual Members: Individuals or groups of individuals providing financial and/or in-kind support to NESsT. NESsT is building an Investors Circle comprised of two types of funders: NESsT Investors Circle: Opportunity to Invest
  8. 8. Later Stage Portfolio Vydra (Slovakia) Mission: Preservation of local traditions, culture & environment in rural Microregion, Cierny Hron. Social Enterprise: With support from NESsT, Vydra has launched a &quot;Tourist Camp” (café, cultural, environmental & recreational events) in the Vydrovská Valley to encourage tourism, create local employment opportunities, and sustain itself.
  9. 9. The NESsT Vision: Three Levels 3. Organization Level: NESsT envisions effective, high impact nonprofit organizations with sufficient, flexible, and sustainable sources of income. 1. Market Level: NESsT envisions a new marketplace more responsive to needs of local communities and low-income people. 2. Sector Level: NESsT envisions a diverse nonprofit capital market that provides nonprofit organizations with the appropriate types of financing necessary at the various stages of their development. Market Level Sectoral Level Org. Level
  10. 10. Current NESsT Venture Fund Portfolio Members Later Stage Portfolio Energy Center Bratislava (Slovakia) Mission : Overview: Energy Center Bratislava (ECB) was founded in 1993 to increase the public’s energy awareness – supporting and advocating measures and activities aimed at the efficient use of energy and the utilization of renewable sources of energy. Social Enterprise: ECB provides energy advisory services to households and companies on how to reduce energy consumption. ECB also provides market research and marketing opportunities to companies in the energy efficiency field.
  11. 11. Later Stage Portfolio Mission : Established in 1994 in Olomouc, P-Centrum is a multi-purpose facility that provides treatment and after-treatment to recovering drug addicts and their families. Social Enterprise: With support from NESsT, P-Centrum has launched a wood-sculpting business focusing on construction of hand-carved benches and multifunctional sculptures for children’s playgrounds, parks, zoos, etc. The enterprise both employs at-risk youth and generates income for P-Centrum’s youth programs.