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Day3_SideEvent_Edoardo Cavallo


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Presentation at the 5th Global Science Conference on Climate-Smart Agriculture.

Title: Business Model Inspiration and Ideas for Scaling CSA
Speaker: Edoardo Cavallo

Published in: Science
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Day3_SideEvent_Edoardo Cavallo

  1. 1. Business Model Inspiration and Ideas for Scaling CSA Edoardo Cavallo Investment Officer - Mirova Natural Capital CSA 2019, Side event, Bali, October 10
  2. 2. Roadblocks to CSA financing? Small ticket sizes lead to high transaction costs Innovative approaches with lack of track record and subject to agri-related risks
  3. 3. Approaching CSA from a business angle
  4. 4. Navigating the business lexicon Unit Economics: “direct revenues and costs associated with a particular business model expressed on a per unit basis” • Incremental Cashflow Analysis: (cash inflow from new business model – cash outflow from new business model) – (cash inflow status quo – cash outflow status quo) • Value of Time: a dollar today is better than a dollar tomorrow -> especially relevant in CSA interventions where benefits may be relevant only over a long time-horizon
  5. 5. Project finance analysis
  6. 6. Navigating the business lexicon (iii) Total Available Market aka “Your vision” Serviceable Available Market aka “Get your investors excited” Serviceable Obtainable Market aka “Scalability vs Replicability Limitation”
  7. 7. Navigating the business lexicon (iii) Term Sheet: how much money do you need, which instrument and at which condition (horizon, interest rate) • Equity: long-term but requires giving up ownership • Debt: short, medium or long-term but usually requires proven business models and collateral