This document discusses investment and funding for social enterprises. It emphasizes the importance of understanding the stages of growth for a social enterprise and matching funding to the appropriate stage. The stages include the seed round for initial product development, startup rounds when accessing initial markets, growth rounds to scale operations, and scale-up rounds for profitability and large-scale impact. Examples of funding models are provided, including venture philanthropy funds, equity funds, loan funds, and crowd-funding platforms. The document also discusses hybrid value chain models and case studies of social enterprises that have successfully scaled their impact.

1. Investment & Funding for
SUNIT 14.7.12 @ ANIS
Social Enterprises

2. sunit shrestha

3. know oneself
know the landscape
build relationship

4. know oneself

5. startup is a mindset
startup finance is not about techniques
it’s about the movement of a dragon

6. Chen Rong 1244

10. qualities of a dragon ?

11. flow
flexibility
resilient
reaching for heaven

12. dragon = asian model for growth

13. startup financing is all about growth

14. seek & understand your inner dragon

15. J - Curve
image from Zurück zu Web 2.0: A Strategy Guide

16. milestone1 milestone2 milestone3 milestone4
product/service access to profitability scalability
development market
image from Zurück zu Web 2.0: A Strategy Guid

17. growth path / staircase
different revenue/cost at each stage milestone4
impact4
different funding round scalability
milestone3
impact3 scale-up - round 4
profitability
milestone2
impact2 growth - round 3
OPTIONS:
access to a
market b
milestone1 c
impact1 startup - round 2 ...
product/service
development
seed - round 1

18. scale-up
growth
startup
seed

19. adaptive
options

20. sustainable agriculture company
milestone4
xxxxx
year3-4 xxx
x
milestone3
2000 families
distribution channels
year2 growth - round 3
projected revenue: 10M
milestone2 investment need: 2M
100 families option1:
fertilizer factory building organic rice
startup - round 2 production network
year1 projected revenue: 2M
milestone1 investment need: 1.5M
1 community
pilot organic fertilizer option2:
seed - round 1 grassroots affordable
projected revenue: 250k retail chain
investment need: 300k

21. yours? ??
milestone4
impact4
scalability
??
milestone3
impact3 scale-up - round 4
profitability
??
milestone2
impact2 growth - round 3
access to
?? market
milestone1
impact1 startup - round 2
product/service
development
seed - round 1

22. RULE-OF-THUMB
try not to initially give out more than 40%
you need control of direction
if you need more investment in the future,
you will need to give out more.

23. know the landscape

24. Spectrum of social organization types
NGO with
NGO / Social Firms with Normal
revenue
Non-profit Enterprise strong CSR firms
activities
Social benefits only Profit only

25. Spectrum of social investment
Socially
Venture Impact Normal
Philanthropy responsible
philanthropy investment investment
investment
Social benefits first Profit first

26. Models and cases
Venture Philanthropy Funds
Impetus
SVP Tokyo / SV-HK
WTF, SEEDS
Equity funds
Acumen Fund
Avishkkaar
Bamboo Finance
Loan funds
Roots Capital
Eyes Fund
MDLF
Crowd-funding Platforms
GlobalGiving.com Kiva.org

27. Hybrid Value-chain (HVC)
SE /
BIZ HVC NGO
Scalability Access/innovation

28. Low-income Housing
• Coleramica + Kairos = Viste Tu Casa
(12M USD, 28,000 families)
• Mortgage + Developers + CSO = HVCs
(7,500 homes/apartments; 100M USD)
Health
• Aravind + Dutsche Bank = 15M Eyes Fund
• Grameen + Danone = Yogurt for low-income
Others
• Amanco + SEs = Drip-irrigation systems
(56M a year)
• Grameen + Telenor = Grameen Phone
(27 million subscribers)

29. build relationship beyond the money

30. for more info & community
social enterprise network
asia (sena)
www.senetwork.asia
twitter @sunit
facebook.com/sunit.shrestha
sunit@changefusion.org