Dr.Bozesan on Economic Empowerment of Women Global Summit of Women Kuala Lumpur2013

© 2013 AQAL Capital. Strictly Confidential. For qualified investors only.
11
© 2013 AQAL Capital. Strictly Confidential. For qualified investors only
Dr. Mariana Bozesan
Club of Rome Full International Member
President & Founder, AQAL Investing
Partner, AQAL Capital
June 2013, Kuala Lumpur
Pitching to Investors: Financing
Your Business for Growth
An Integrated Approach

© 2012 AQAL Investing. All rights reserved.
Dr. Mariana Bozesan
• Masters Degree in Computer Science
– Studied at Stanford University and Karlsruhe Institute of
Technology
• Doctorate, Ph.D. in Psychology, ITP Palo Alto California
• Private Equity Investor:
– 18 Years of high-tech, bio-tech, & clean-tech investing
• Serial Entrepreneur: founded 4 companies
• Venture Philanthropist: Supporting > 38 NGOs
My MOTTO: PARITY OF PEOPLE, PLANET, PROFIT, with
PASSION, and PURPOSE
2

3
Outcomes Today
1. Why understanding the global context in which
you operate is crucial for your success?
2. Why your business must be an integrally
informed business to succeed?
3. Why understanding capital will help you attract
it to make your dream come true?
4. Why you are the biggest investor in your
business and why you are the most important
person in your life?
3

© 2012 Integral INVESTING. All rights reserved.© 2013 AQAL Capital. Strictly Confidential
Lehman, Fukushima, Madoff, Libor, Clim
ate Change, Debt Crisis…

… lead to wealth owners’ sinking
confidence in institutional investors*
*Source: BCG Report, Regaining Lost Ground: Resurgent markets and new opportunities. Becerra et al.2010.

>= 10% of High Net-Worth Individuals
want sustainability in both financial
terms and impact, but cannot get it

…. because innovative financial
products that can fulfill their needs are
missing at large scale

© 2012 Integral INVESTING. All rights reserved.
Thus, many HNWI are bypassing institutions
• Seeking alternatives to traditional fund products,
often sobered by weaker than expected past
product performance
• Wealth owners are self-organizing:
–AVIVA Corporate Sustainability Coalition ($2 trillion)
–International Integrated Reporting Committee (IIRC)
–International Stock Exchange Initiative
–Sustainable Capitalism Manifesto – Al Gore
–The Giving Pledge, GIIN, incl. self-organizing family
offices, TONIIC, PYMWYMIC, AQAL Investing, etc.
*Source: J. P. Morgan & GIIN Report: Insight into the Impact Investment Market. December 14, 2011
Market drivers

9
Traditional investing is challenged*
9
Market drivers
• Financial crisis lead to fear and uncertainty
– Falling revenue and margins
– Massive capital migration
– Frustrated wealth owners losing trust in their asset managers
– Alternative and customized investing are on the rise
• Traditional investing often focused on short-term profit
maximization at the expense of long-term health of global
community, culture, environment, ethics, and overall human
happiness
• Traditional investment metrics often missed
sustainable, time-based businesses and responsible
investment opportunities
• Many traditional asset managers failed to develop a core
competency in alternative investing opportunities including
impact investing (SRI/RI/ESG) Profit
TRADITIONAL
INVESTING
Profit Metrics
e.g.
WALL STREET
BERKSHIRE-
HATHAWAY
KKR
SEQUOIA CAPITAL
*Source: Mulcahy, D. & Weeks, B. & Bradley, H. S., (2012, May). We have met the enemy …. And he is us: Lessons learned from twenty years
of the Kauffman Foundation’s investments in venture capital funds and the triumph of hope over experience. Kauffman Foundation Research

10

Impact Investing is growing but is
fragmented

12
Impact Investing is fragmented in terms of
motives and approach
Two types of Investors*
• Financial (Profit) First Investors
– Pursue the optimization of financial
returns before having an impact floor
– Investors “are not willing to accept
lower than market returns as a cost to
optimizing social or environmental
goods, although they still make a
positive impact”
• Impact (People/Planet) First Investors
– Seek to optimize social and
environmental impact with a financial
floor
– For greater impact, investors are willing
to accept lower than market financial
returns.
IMPACT
INVESTING
Sustainability Metrics:
ESG
Triple Bottom Line
Profit
People
Planet
e.g.
GRAMEEN BANK
TRIODOS BANK
GLS BANK
BANK SARASIN
Market drivers
*Definition after (Eurosif, 2010, p. 7)

13
Global Sustainable Investing (SRI/RI) is growing*
• Global Sustainable Investments
using some kind of ESG criteria
reached US$ 13.6 trillion (=21.8
% of total AUM in 2012) with
– Most common strategy being
Negative/exclusionary
screening, US$ 8.3 trillion AuM
– Norm-based screening, US$ 3.0
trillion AUM mostly Europe (65% of
known SRI AuM)
– Positive/best-in-class screening 1.0
trillion AuM, mostly US
– Assets utilizing ESG integration are
at US$ 6.2 trillion
Market drivers
*Source: The Global Sustainable Investment Alliance (GSIA)
Report 2012, http://gsiareview2012.gsi-alliance.org
• Impact Investing theme
investments are still
fragmented and
– Comparatively small at US$
89.0 billion
• Sustainability theme
investments
– Are also comparatively small
at USD 83.0 billion

The Integration
between Traditional Investing and
Sustainable Impact Investing is needed

15

16
Integral Metrics
Planet
People
Profit
Ethics, Ego, Emot
ions &
Consciousness
Behavior
ExteriorInterior
IndividualCollective
Culture
&
Morals
INTEGRAL INVESTING
AQAL Investing, AQAL CAPITAL, Natural
Investing
Integrating Traditional and Impact Investing
Profit
TRADITIONAL
INVESTING
Profit Metrics
e.g.
TRADITIONAL
WALL STREET
BANKS
AND
VENTURE CAPITAL
FIRMS
IMPACT
INVESTING
Profit
People
Planet
Sustainability Metrics
ESG, IRIS, SAM
Triple Bottom Line
e.g.
GRAMEEN BANK
LGT VENTURE
PHILANTHROPY
Integral Investing is based on Ken Wilber’s Integral theory that is widely applied in 35 disciplines including
science, politics, economics, education, medicine, and business; Ken Wilber is endorsed by Nobel Prize laureate Al Gore, former US President Bill
Clinton, former Secretary of State Hillary Rodham Clinton, and is also used i.e. at McKinsey and Company.
Source: Wilber, K. (2000). A theory of everything: An integral vision for business, politics, science, and spirituality. Boston: Shambhala.
Strategy

Your best bet in financing your
business are
Integral Impact Investors

18
Outcomes Today
18

What business are you in?

© 2011 Dr. Bozesan. All rights reserved.
SOCIAL
ENVIRONMENTAL
PROFIT
EGO
VALUES
NEEDS
EMOTIONS
CONSCIOUSNESS
Ethical
BEHAVIOR
ExteriorInterior
CULTURE&
MORALS
PROFIT
TRADITIONAL
BUSINESS
SOCIAL
BUSINESS
INTEGRALLY INFORMED
BUSINESSESS
Whole Foods, Patagonia, REI
Evolution of Business
SOCIAL
ENVIRONMENTAL
ENRON
WALL STREET
BP
MONSANTO
PHILLIP MORRIS
GILLETTE
McKinsey & Co.
GRAMEEN BANK
PHINEO
LGT VENTURE
PHILANTHROPY
UBS GLOBAL
PHILANTHROPY
SKOLL GLOBAL
THREATS FUND

Are you creating a
valuable, sustainable, and responsible
business that is also financially
successful?

22
e.g. Whole Foods:
+40%
Higher ROI than FoEs
over 10 years
(1800% shareholder
value 1995–2006)
Sample: 8.0x
higher ROI than market
average (S&P 500) over
10 years; and -
3.1x
higher than GGCs
3.0x
higher ROI than
market average
(S&P 500) over
15 years
GOOD TO GREAT COMPANIES
(“GGC”s) - 2002
•Nucor; Kimberly-Clark
•Kroger; Walgreens
•Wells Fargo; Gillette
ESG & INTEGRALLY
ACTING BUSINESSES
•The Container Store; REI
•Whole Foods; Trader
Joe’s; Patagonia; DM
•Stoneyfield Farms
FIRMS OF ENDEARMENT
(“FoE”s) - 2007
•Patagonia; Amazon
•Southwest Airlines
•IKEA; BMW; eBay
•Google; AVEDA
*Source: Sisodia, R., Sheth, J., Wolfe, D.B. (2007). New Jersey: Wharton School, p. 16
Evidence: Risk reduction & inclusive sustainability
already visible with ESG & integrally acting companies
Evidence
Results of the ongoing Shift to Conscious Capitalism

© 2010 AQAL INVESTING. All rights reserved.
Outcomes Today
3. Why understanding capital will help you attract it
to make your dream come true?
23

To empower yourself financially you
must understand sources of capital
how it works, and how to get it

2525
Strategy
GOVERNMENT CAPITAL Debt, Equity, Grants
PUBLIC-PRIVATE PARTENRSHIPS
German Kreditanstalt für Wiederaufbau (KfW), European Investment Fund, USAID
ExteriorInterior
PLANET
PEOPLE
PROFIT
ETHICS
EGO
EMOTIONS
CONSCIOUSNESS
BEHAVIOR
CULTURE&
MORALS
INTEGRAL CAPITAL
Generation, Giving Pledge, Capital Missions
Company, Natural Investing
Integral capital
regular - government - philanthropic - donations
PROFIT
TRADITIONAL
CAPITAL
Debt & Equity
WALL STREET
GOLDMAN SACHS
JP MORGAN
KLEINER PERKINS
PHILANTHROPIC
CAPITAL
Donations
PEOPLE
PLANET
BERTELSMANN
ROCKEFELLER
FOUNDATIONS

26
TARGETFINANCIALRETURN
TARGET SOCIAL, ENVIRONMENTAL, ETHICAL, CULTURAL, & HAPPINESS IMPACT
PROFIT FLOOR
IMPACTFLOOR
FINANCIAL FIRST
INVESTORS
Optimize financial
returns with an
impact floor
IMPACT FIRST
INVESTORS
Optimize social and
environmental impact
with a financial floor
Philanthropy
Making Money
INTEGRAL INVESTING
Risk-adjusted optimal
financial return and
premium impact returns
Strategy
Integral Investors care about the 6Ps: Parity of
People, Planet, Profit, Passion and Purpose

But, how to convince investors to
invest in your business?

28
The Elevator Pitch
• Be concise, <250 words, 90 seconds
• Explain the problem you solve
• Describe the benefits of your product/service
• Make it easy to understand
• Grab attention
• Qualify the prospective (integral?) investor
• Show your passion: People invest in YOU!!!!
• End with an action plan
• You want them to listen to YOU, not to invest
(yet) in your company !!!!!

29
A Good Fundraising Presentation
• Use simple pictures, diagrams, and graphs
• Be specific
• 20 minutes
• Build bullet points - 30 point font and Arial
• No fancy animations
• No clutter
• Put your corporate logo on every page
• Think different
• Be a mensch – simply be YOU

30
The Ten Slide Presentation
• Slide 1: Title: What does your company do?
• Slide 2: Problem: What problem are you solving?
• Slide 3: Solution: How do you solve this problem?
• Slide 4: Biz model: What is your business model?
–How do you make money?
–What is your social, cultural, environmental impact?
–How do you distribute your goods/service?
–How do you create value?

31
The Ten Slide Presentation (cond.)
• Slide 5: The Magic: What makes your company
better than the others?
–Technology?
–Intellectual Property (IP)? # of patents?
–People?
–Where‟s the magic?
–NEVER share your “secret sauce” without an NDA

32
• Slides 1-5: get their attention by telling the
investor why to invest in your business
• Slides 6-10: now that you have their
attention, tell them why you will succeed

33
• Slide 6: Marketing and Sales:
–How do you reach your customer and close sales in a
reasonable time and on a tight budget?
• Slide 7: Competition:
–Who are your competitors and why are you better?
• Slide 8: Management Team: Why you?
• Slide 9: Financial Projections and Key ESG Metrics:
–The promises you make to your investors
• Slide 10: Milestones: status, timeline, use of funds

34
Key Advise
• Tell an exciting story. People invest in YOU
• Your customers are suffering terribly in the world
as it is today
• They desperately want the world/current
business situation to change for the better.
• “Better” means that _________________.
• But, something terrible is preventing this
change…
• But, there you come ….. With the solution

35
Key Advice (continued)
• A HAPPY ENDING!
– Your company has the magic solution
– Life will get better in the world
– Your customers will buy your solution because they have
to have it
– They will buy lots of it
– They will pay lots of money for it
• PS: This will happen quickly, on budget, and then
there will be an juicy exit/ a liquidity event….

36
Storytelling techniques that work
• Good analogies powerfully connect your concept to a
concept that the listener is familiar with
…it‟s a Yahoo! for your town…
…it‟s an IPOD for non-contextual data…
…it’s like the FAX machine …..
…just like digital cameras are replacing traditional
silver halide chemistry, this technology is the revolution
in printing substrates…

© 2011 by Dr. Mariana Bozesan. All rights reserved.
Storytelling Techniques
• Tell your personal story of pain and suffering
that led you to found your company.
• Move the story along in an interesting way
• Explain why you„re the right woman for the job

For an investor, an investment
decision is all about managing
RISK

43
Q & A: Addressing Concerns
• Potential Risks:
–Technology risk
–IP-related risk
–product risk
–market risk
–people risk, the competition, financing risk, barriers
to entry, regulatory risk, environmental
concerns, political risk, liquidity concerns…
• You MUST to have the answers

44
The 11th Slide
• The Offer:
– How much are you raising? How much of this amount is spoken for?
– Do you have a valuation in mind? How flexible are you?
– Do you have a lead investor yet?
– What is your timetable for this financing?
• How will you use the funds?
• What are the milestones? Where will the company be when
this money runs out?
• What are the next steps?
• GIVE YOUR CONTACT INFORMATION

45
What Investors Are Looking For?
• Management team: experienced, driven, ambitious
• Market attractiveness: big, in pain, adoptable, rich
• Competition: weak, unable to adapt, missing the market, do
they look more like potential acquirers?
• Technology/Product: unique, patentable
• Forecasting results: clear understanding of the business, clear
business model, sensible relationship between
milestones, new hires and additional capital
requirements, path to liquidity
• Making a difference and having an impact!

Outcomes Today
3. How to attract and where to look for capital to
make your dream come true?
4. Why you are the biggest investor in your
business and why you are the most important
person in your life?
46

Measuring Success: Keeping the Promise of
Millennium Development Goals
Sustainable Development
Clean Water
Population and Resources
Democratization
Long-term
Perspectives
Global Convergence
of IT
Rich/Poor Gap
Health IssuesCapacity to Decide
Peace and Conflict
Status of Women
Transnational
Organized Crime
Energy
Science and Technology
Global Ethics 1
215
314
4
5
6
7
89
10
11
12
13
Source: Millennium Project of WFUNA, www.millennium-project.org

What is missing?

The interior aspects
are missing

Source: “Heart Disease and Stroke Statistics—2005 Update”, American Heart Association;
“United States Cancer Statistics—2002 Incidence and Mortality”, CDC and the National Cancer Institute
Some interior challenges
1 in 2 adults are dying of
cardiovascular disease 1 in 3 people are
dying of cancer
Obesityis one of the most
significant public health challenges
of this century: 2 in 3 adults in the
industrial world are overweight
or obese
1 in 3 children in developed
countries are overweight
Diabetes is one of
the fastest growing
diseases of this century
Copyright 2010 |

Divorce
Average rate in
the West 50%*
There Is More
Social Isolation
Depression
7 in 100 people, 10% treated
1 man 2 women
Addictions
Shopping: 1 in 20 suffers from shopping
addiction in the US; 30% of Austrians are
endangered
Violence
WHO: Leading public health problem
Cost to victims in the US 10% of GDP
Compulsive Disorders
Online gaming: 10% of 40M Chinese teenagers;
8.5% US teenagers
Source: Sieglitz, Sen, Fitoussi, (2009) “Report by the Commission on the
Measurement of Economic Performance and Social Progress”

We only have a
consciousness crisis today

How are you doing as a human
being?

56
Summary
1. Evolution is on our side
• Thinking globally and acting locally is crucial for your success
2. The future of business is integrally informed
• Implement the 6Ps and you will be wildly successful
3. Attract integral impact investors and you will
succeed
• Remember: You are the biggest investor in your business
4. You are the most important person in your life
• Take good care of yourself
• Have fun
56

5757
© 2013 AQAL Capital. Strictly Confidential. For qualified investors only
THANK YOU!
Dr. Mariana Bozesan
Mariana@Bozesan.com

Dr.Bozesan on Economic Empowerment of Women Global Summit of Women Kuala Lumpur2013

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