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SunFunder World IA Day 2015 Seattle

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Sameer is the Co-Founder and Chief Design Officer of SunFunder. He will talk about how design and information plays a key role in the functioning of their business. He will talk about the information challenges of formalizing this unstructured ecosystem that spans different geographies, populations, solar technologies, business models, politics, regulations and price points. He will also talk about the challenges of extracting reliable information and working in the absence of information due to the low technology, high human capital nature of many of these businesses. Also learn about the new taxonomies they use to help normalize risk assessments across the portfolio and adapting to the dynamic needs and opportunities of the sector. He will also talk about how a simplified vocabulary, simplified design of the technology systems helps SunFunder scale it’s own operations.

And finally he will also talk about story telling, including the qualitative impact of these investments, along with the measurable social and environmental impact that investors care about. When everything comes together, investors are happy that their money was used to bring about measurable, positive change in the world, while earning them a financial return; and at the same time thousands of people around the world end up with reliable access to electricity and lighting and become a part of the emerging solar energy revolution and all the cascading benefits it brings.

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SunFunder World IA Day 2015 Seattle

  1. 1. Bringing off-grid Solar to Emerging Markets SunFunder Sameer Halai Chief Design Officer @sameerhalai @sunfunder #sunfunder #WIADseattle #WIADsea15
  2. 2. The Off-grid Solar Market How SunFunder Works Business Strategy Risk Mitigation Storytelling
  3. 3. 2.5B with insufficient ELECTRICITY 600M with cellphones NO CHARGING
  4. 4. THE POOREST FIFTH OF THE WORLD PAY ONE-FIFTH OF THE WORLD’S LIGHTING BILL — BUT RECEIVES ONLY .1 PERCENT OF THE LIGHTING BENEFITS
  5. 5. DIESEL & KEROSENE DOMINATE
  6. 6. ABOUT 1.5 MILLION PEOPLE DIE OF INDOOR KEROSENE POLLUTION EVERY YEAR, IN ADDITION TO THOSE WHO DIE FROM BURNS IN FIRES EFFECTS ON HEALTH
  7. 7. BARRIERS TO INFORMATION ACCESS
  8. 8. BARRIERS TO SAFETY AND SECURITY
  9. 9. BARRIERS TO COMMERCE
  10. 10. BARRIERS TO EDUCATION
  11. 11. CELL-PHONES ARE EVERYTHING
  12. 12. CELL-PHONES ARE EVERYTHING
  13. 13. KEROSENE COSTS 25 PERCENT OF A FAMILY’S INCOME. $2-$10 A MONTH — $36 BILLION A YEAR
  14. 14. CELL PHONE CHARGING COSTS $2-$6 A MONTH (10-20% of income)
  15. 15. IMMEDIATELY ADDRESSABLE COMMERCIAL & INDUSTRIAL DIESEL IS $50B
  16. 16. BETTER: BRIGHTER 10 lumens100 lumens
  17. 17. BETTER: CHEAPER
  18. 18. BETTER: RELIABLE
  19. 19. BETTER: LIFE CHANGING
  20. 20. BARRIER: CAPITAL INTENSIVE
  21. 21. BARRIER: PAYBACK TIME 1yr to 3yrs
  22. 22. BARRIER: TOO RISKY FOR BANKS
  23. 23. BARRIER: HARD TO SCALE WITH MICROFINANCE ALONE
  24. 24. The Off-grid Solar Market How SunFunder Works Strategy Risk Mitigation Storytelling
  25. 25. TRENDS: ENERGY DEMANDS ARE INCREASING
  26. 26. TREND: HUGE UNMET CAPITAL NEEDS
  27. 27. TREND: SOLAR ENERGY IS GETTING CHEAPER
  28. 28. economics are compelling moral urgency is profound the development benefits are enormous potential leverage is game changing CARL POPE, YALE
  29. 29. Fundraising & Lending DISTRIBUTORS INSTALLERS MICRO-GRID COMPANIES COMMERCIAL SUPPLIERS (Example) ANGEL INVESTORS / HNIs IMPACT INVESTORS / FAMILY FUNDS / FOUNDATIONS GOVERNMENT / DFIs CAPITAL MKTs / PENSION FUNDS / ENDOWMENTS CROWDFUNDING Investors Borrowers
  30. 30. Equity Debt Solar Empowerment Fund Grants Investors
  31. 31. Distributors/ Suppliers Installers/ PAYG Customers Microgrids/ Commercial In Progress In Progress
  32. 32. Experienced, Passionate Team Ryan Levinson Founder & CEO Audrey Desiderato Co-Founder & COO Sameer Halai Co-Founder & Chief Design Officer Alycia Kellman Chief Counsel & Head of Debt Funds Andrea Griffin VP, Portfolio Cindy Nawilis Director, Investor Relations & Operations U S A T A N Z A N I A Baraka Megiroo Financial Analyst Joshua Kabugo Credit Associate Abbas Mohamed Credit Committee Gabriel Williams Lead Developer
  33. 33. DISTRIBUTORS $33,000 loan 6 month tenor 300 solar systems financed 1,500 lives impacted $58,500 in energy cost savings/yr 96,600 kg CO2 avoided/yr
  34. 34. $200,000 loan 24 month tenor 340 systems financed 3,111 lives impacted $78,880 in energy cost savings/yr 54,340 kg CO2 avoided/yr INSTALLERS
  35. 35. MICRO-GRID COMPANIES $30,000 loan 36 month tenor 50 microgrids financed 6,250 lives impacted $27,932 in energy cost savings/yr 169,000 kg CO2 avoided/yr
  36. 36. COMMERCIAL (example) $660,000 loan 24 month tenor 30 10-kWh systems financed 300 lives impacted $72,825 in energy cost savings/yr 42,600 kg CO2 avoided/yr
  37. 37. SUPPLIER $100,000 loan 1-year tenor 6,000 solar lights financed 30,000 lives impacted $12,000 in energy cost savings/yr 7,500 kg CO2 avoided/yr
  38. 38. $12.5m lending portfolio by 2015 Q4 $20m $18m $16m $14m $12m $10m $8m $6m $4m $2m $0m Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2014 2015 2016 $50k funded $0.5m Solar Notes I Closed $0.5m Angel Round Closed $12.5m funded $2m Series A Closed $1.2m Solar Notes II Closed $20m funded, profitable
  39. 39. The Off-grid Solar Market How SunFunder Works Strategy Risk Mitigation Storytelling
  40. 40. Customer Segments DISTRIBUTORS INSTALLERS MICRO-GRID COMPANIES COMMERCIAL SUPPLIERS 2013 $360k (example)
  41. 41. Customer Segments DISTRIBUTORS INSTALLERS MICRO-GRID COMPANIES COMMERCIAL SUPPLIERS 2013 $360k 2014 $1.4m (example)
  42. 42. Customer Segments DISTRIBUTORS INSTALLERS MICRO-GRID COMPANIES COMMERCIAL SUPPLIERS 2013 $360k 2014 $1.4m 2015 $12.5m (example)
  43. 43. Customer Segments DISTRIBUTORS INSTALLERS MICRO-GRID & COMMERCIAL SUPPLIERS 2013 $360k 2014 $1.4m 2015 $12.5m (example)
  44. 44. Customer Segments DISTRIBUTORS INSTALLERS MICRO-GRID & COMMERCIAL SUPPLIERS 2017 $50m 2013 $360k 2014 $1.4m 2015 $12.5m (example)
  45. 45. Investor Segments UNACCREDITED INVESTORS (crowdfunding) ANGEL INVESTORS / HNIs IMPACT INVESTMENT GROUPS / FAMILY FUNDS / FOUNDATIONS GOVERNMENT / DFIs CAPITAL MKTs / PENSION FUNDS / ENDOWMENTS / SOVEREIGN WEALTH FUNDS 2013 $360k
  46. 46. Investor Segments UNACCREDITED INVESTORS (crowdfunding) ANGEL INVESTORS / HNIs IMPACT INVESTMENT GROUPS / FAMILY FUNDS / FOUNDATIONS GOVERNMENT / DFIs CAPITAL MKTs / PENSION FUNDS / ENDOWMENTS / SOVEREIGN WEALTH FUNDS 2013 $360k 2014 $1.5m
  47. 47. Investor Segments UNACCREDITED INVESTORS (crowdfunding) ANGEL INVESTORS / HNIs IMPACT INVESTMENT GROUPS / FAMILY FUNDS / FOUNDATIONS GOVERNMENT / DFIs CAPITAL MKTs / PENSION FUNDS / ENDOWMENTS / SOVEREIGN WEALTH FUNDS 2013 $360k 2014 $1.5m 2015 $15m
  48. 48. Investor Segments UNACCREDITED INVESTORS (crowdfunding) ANGEL INVESTORS / HNIs IMPACT INVESTMENT GROUPS / FAMILY FUNDS / FOUNDATIONS GOVERNMENT / DFIs CAPITAL MKTs / PENSION FUNDS / ENDOWMENTS / SOVEREIGN WEALTH FUNDS 2013 $360k 2014 $1.5m 2015 $15m 2017 $100m :(
  49. 49. Geographies KENYA 2013 TANZANIA UGANDA ZAMBIA ASIA
  50. 50. Geographies 2013 2014 KENYA TANZANIA UGANDA ZAMBIA ASIA
  51. 51. Geographies 2013 2014 2015 KENYA TANZANIA UGANDA ZAMBIA ASIA
  52. 52. Geographies 2013 2014 2015 2017 KENYA TANZANIA UGANDA ZAMBIA ASIA
  53. 53. Financing Types Inventory 2013 Term Construction Project
  54. 54. Financing Types Inventory 2013 2014 Term Construction Project
  55. 55. Financing Types Inventory 2013 2014 2015 Term Construction Project
  56. 56. Financing Types Inventory 2013 2014 2015 2017 Term Construction Project
  57. 57. The Off-grid Solar Market How SunFunder Works Strategy Risk Mitigation Storytelling
  58. 58. Solar Empowerment Fund ?% ?yr DEBT $?M SunFunder
  59. 59. Solar Empowerment Fund ?% ?yr SENIOR DEBT (protected by first loss layer) ?% ?yr JUNIOR DEBT $?M ?% ?yr SENIOR DEBT (protected by first loss layer) ?% ?yr JUNIOR DEBT $?M ?% ?yr DEBT $?M SunFunder
  60. 60. Solar Empowerment Fund ?% ?yr SENIOR DEBT (protected by first loss layer) ?% ?yr JUNIOR DEBT $?M ?% ?yr SENIOR DEBT (protected by first loss layer) ?% ?yr JUNIOR DEBT $?M ?% ?yr DEBT $?M ?% ?yr SENIOR DEBT ?% ?yr JUNIOR DEBT $?M SunFunder ?% ?yr DEBT $?M
  61. 61. SUNFUNDER TOTAL PORTFOLIO FY12-To Date $1.75M total across 15 customers and 39 solar project loans Installer $?? 35.22% of portfolio $?? avg loan size ??% avg interest rate C&I $?? 0% of portfolio $?? avg loan size ??% avg interest rate Supplier $?? 14.1% of portfolio $?? avg loan size ??% avg interest rate Distributors $?? 49% of portfolio $?? avg loan size ??% avg interest rate Micro-Grid $?? 1.7% of portfolio $?? avg loan size ??% avg interest rate Kenya $?? 42.4% of portfolio $?? avg loan size ??% avg interest rate Tanzania $?? 19.8% of portfolio $??avg loan size ??% avg interest rate Uganda $?? 33.2% of portfolio $?? avg loan size ??% avg interest rate Asia $?? 1.9% of portfolio $?? avg loan size ??% avg interest rate Inventory $?? 57.7% of portfolio $?? avg loan size ??% avg interest rate Construction $?? 0% of portfolio $?? avg loan size ??% avg interest rate Term $?? 42.27% of portfolio $?? avg loan size ??% avg interest rate DIVERSIFICATION 15 customers 5 customer segments 5 geographies 3 loan products Zambia $?? 2.7% of portfolio $?? avg loan size ??% avg interest rate IMPACT 228k ppl impacted 3.3M kg CO2 avoided annually $2.8M Energy cost savings annually 12 Active Customers 12.4 Avg Loan Term (mo.) 0% Portfolio At Risk - 14 days 0% Portfolio At Risk - 30 days 0% Portfolio Watch List $1.3m Outstanding Balance PORTFOLIO AT RISK OVERVIEW
  62. 62. The Off-grid Solar Market How SunFunder Works Strategy Risk Mitigation Storytelling
  63. 63. Aerial Photography
  64. 64. Sameer Halai Chief Design Officer @sameerhalai @sunfunder #sunfunder #WIADseattle #WIADsea15 SunFunder Bringing off-grid Solar to Emerging Markets

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