Heart and the Blended Value Proposition <ul><li>04 June 2009 </li></ul>
INTRODUCTION | Today’s discussion <ul><li>Introduction </li></ul><ul><li>The Heart space from a SE perspective </li></ul><...
INTRODUCTION | The Heart Space Social   Value Financial Value Corporates NGOs
INTRODUCTION | The Heart Space Financial Value Social Value Social Value Financial Value High High Low Low Social Capital ...
INTRODUCTION | The Heart Space TRADITIONAL MODEL Cause Donor Public Donations:  R17 billion in 2007 CSI R4.3 billion Outco...
INTRODUCTION | The Heart Space Donor Social   Enterprise Redirect a portion of charitable contributions to Social Enterpri...
INTRODUCTION | The Heart Space Social   Value Financial Value NGOs Corporates Social Enterprise Do-gooder, whole wheat san...
INTRODUCTION | Blended Value Economic Value Social Value Social Value Economic Value High High Low Low Maximized  Social &...
INTRODUCTION | Blended Value Seed Funding Start Up Funding Secondary Funding Mainstream Funding Traditional phases of Entr...
INTRODUCTION | Blended Value The social enterprise spectrum: philanthropy to commerce – Harvard business school
What is Heart? <ul><li>04 June 2009 </li></ul>
WHAT IS HEART | Intro Heart, transforming quality of life by creating, incubating  and establishing social enterprises tha...
WHAT IS HEART | Intro It is our vision and vocation to bring about  social transformation  by creating  sustainable social...
WHAT IS HEART | Fund Management 1. Originate Heart Seed Fund  <ul><li>Features: </li></ul><ul><li>Money Back Plus </li></u...
WHAT IS HEART | Fund Management 1. Originate 2 .  Incubate Heart Seed Fund  Heart Venture Fund  <ul><li>Features: </li></u...
WHAT IS HEART | Fund Management 1. Originate 2 .  Incubate 3. Capacitate Heart Seed Fund  Heart Venture Fund  Heart Capita...
WHAT IS HEART | Incubation Social   Value Financial Value 1. Originate 2 .  Incubate 3. Activate 4. Replicate
WHAT IS HEART | Consulting Intervention <ul><li>Social Enterprise development </li></ul><ul><li>Leader brand strategy  </l...
WHAT IS HEART | Advisory Cause –Related Funds  Heart Venture Clubs Engaged Philanthropy  Venture Philanthropy  Charitable ...
Case Studies <ul><li>04 June 2009 </li></ul>
CASE STUDIES | Second Harvest Second Harvest Farmers plough about 20% of their crops back into the ground because the vege...
CASE STUDIES | Wines with Heart Every month more than 50 of South Africa’s leading wine farms donate their products to Cha...
CASE STUDIES | Wines with Heart THANK YOU!!
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Heart and Blended Value

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An edited presentation to GIBS (Gordon Institute of Business Science on Heart's model of social enterprise incubation and blended value proposition funds.

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Heart and Blended Value

  1. 1. Heart and the Blended Value Proposition <ul><li>04 June 2009 </li></ul>
  2. 2. INTRODUCTION | Today’s discussion <ul><li>Introduction </li></ul><ul><li>The Heart space from a SE perspective </li></ul><ul><li>Blended value </li></ul><ul><li>What is Heart </li></ul><ul><li>Fund Management </li></ul><ul><li>Incubation </li></ul><ul><li>Consulting </li></ul><ul><li>Advisory </li></ul><ul><li>Activation </li></ul><ul><li>Case Studies </li></ul><ul><li>Questions </li></ul>
  3. 3. INTRODUCTION | The Heart Space Social Value Financial Value Corporates NGOs
  4. 4. INTRODUCTION | The Heart Space Financial Value Social Value Social Value Financial Value High High Low Low Social Capital Investments (Social Returns) Financial Investments ( Numeric returns) TRADITIONAL MODEL
  5. 5. INTRODUCTION | The Heart Space TRADITIONAL MODEL Cause Donor Public Donations: R17 billion in 2007 CSI R4.3 billion Outcome: Maintenance Donors give money Charities spend it & come back for more Never Ending Cycle
  6. 6. INTRODUCTION | The Heart Space Donor Social Enterprise Redirect a portion of charitable contributions to Social Enterprise Outcome: Sustainability Donors invest money Funding problem eliminated permanently Cause HEART MODEL
  7. 7. INTRODUCTION | The Heart Space Social Value Financial Value NGOs Corporates Social Enterprise Do-gooder, whole wheat sandal, hippy, bunny huggers Money grabbing, bottom line junky, capitalist, evil doers A gap in the market and a market in the gap HEART MODEL
  8. 8. INTRODUCTION | Blended Value Economic Value Social Value Social Value Economic Value High High Low Low Maximized Social & Financial Returns
  9. 9. INTRODUCTION | Blended Value Seed Funding Start Up Funding Secondary Funding Mainstream Funding Traditional phases of Entrepreneurship Traditional phases of Social Entrepreneurship ?
  10. 10. INTRODUCTION | Blended Value The social enterprise spectrum: philanthropy to commerce – Harvard business school
  11. 11. What is Heart? <ul><li>04 June 2009 </li></ul>
  12. 12. WHAT IS HEART | Intro Heart, transforming quality of life by creating, incubating and establishing social enterprises that work long term.
  13. 13. WHAT IS HEART | Intro It is our vision and vocation to bring about social transformation by creating sustainable social enterprises market-based solutions to social problems We are the nexus between social entrepreneurs needing capital and support to develop their social enterprises, and social investors seeking financial and social returns .
  14. 14. WHAT IS HEART | Fund Management 1. Originate Heart Seed Fund <ul><li>Features: </li></ul><ul><li>Money Back Plus </li></ul><ul><li>2 Year deferred loan capital </li></ul><ul><li>2 year investment term for 50 investors maximum (purchased in lots) </li></ul><ul><li>R20 000 per lot </li></ul><ul><li>R1 million cap </li></ul><ul><li>Employed to establish market readiness of 6 SEs (maximum) = 135K per project </li></ul><ul><li>Venture Funds repay loan </li></ul>
  15. 15. WHAT IS HEART | Fund Management 1. Originate 2 . Incubate Heart Seed Fund Heart Venture Fund <ul><li>Features: </li></ul><ul><li>Money Back Plus </li></ul><ul><li>3 Year deferred loan capital </li></ul><ul><li>4 year investment term for 50 investors maximum (purchased in lots) </li></ul><ul><li>R50 000 per lot per annum for 2 years </li></ul><ul><li>R5 million cap </li></ul><ul><li>Employed to incubate 8 SEs (minimum) </li></ul><ul><li>Heart Capital Fund repays loan </li></ul>
  16. 16. WHAT IS HEART | Fund Management 1. Originate 2 . Incubate 3. Capacitate Heart Seed Fund Heart Venture Fund Heart Capital Fund <ul><li>Features: </li></ul><ul><li>Money Back Plus </li></ul><ul><li>3 Year deferred loan capital </li></ul><ul><li>7 year investment term for 200 investors </li></ul><ul><li>R50 000 per lot per annum for 3 years </li></ul><ul><li>R30 million cap </li></ul><ul><li>Employed to capacitate 8 SEs (maximum) for 3 years </li></ul><ul><li>SEs repay loan </li></ul>
  17. 17. WHAT IS HEART | Incubation Social Value Financial Value 1. Originate 2 . Incubate 3. Activate 4. Replicate
  18. 18. WHAT IS HEART | Consulting Intervention <ul><li>Social Enterprise development </li></ul><ul><li>Leader brand strategy </li></ul><ul><li>CSI strategy, training, outsourcing </li></ul><ul><li>Staff volunteering programmes </li></ul><ul><li>Transformation strategy alignment and benchmark tracking </li></ul><ul><li>Social communications strategy </li></ul>Pam Golding Properties Media24 Lewis Group Smit Marine Bio Oil Earthchild Clothing Frika Platypus Productions
  19. 19. WHAT IS HEART | Advisory Cause –Related Funds Heart Venture Clubs Engaged Philanthropy Venture Philanthropy Charitable Contributions Fund, Heart Seed Fund; Heart Venture Fund; Heart Capital Fund Charity Wines Venture Club; FoodTent Venture Club; Adrenalize Venture Club, etc
  20. 20. Case Studies <ul><li>04 June 2009 </li></ul>
  21. 21. CASE STUDIES | Second Harvest Second Harvest Farmers plough about 20% of their crops back into the ground because the vegetables are not market quality. We approach farmers to let us harvest this produce – a second harvest. These vegetables are cooked into nutritious stews, which are packaged into 1,2kg plastic bags and frozen. 1 bag feeds 8 - 12 children Sponsors: Lewis Roll Out: Based in Langa & Bellville – replicable model Sustainability: R8 per packet Projected Income: 30 000 packets per month = R240,000
  22. 22. CASE STUDIES | Wines with Heart Every month more than 50 of South Africa’s leading wine farms donate their products to Charity Wines. These wines are packaged into a Mystery Box and sold to consumers for R250.  Proceeds from sales are invested into NGOs with a Fetal Alcohol Syndrome or Severe Learning Disability focus. Our goal is to eliminate their need to fund raise within 3 years. Sponsors: KWV, Distell + 52 wine farms Roll Out: Based in Stellenbosch, provides national delivery Sustainability: R250 per box
  23. 23. CASE STUDIES | Wines with Heart THANK YOU!!

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