This document summarizes a discussion on impact investment and social finance. It provides background on Vancity Community Capital, an impact investment firm, and discusses key terms in social finance like impact investment, social finance, and challenges and opportunities to better connect social financiers and social enterprises. Ideas are proposed to help impact investors understand social enterprises better through job shadowing, peer reviews, and moving outside financial measures to consider behavioral aspects of investing in social missions.
Fundamentals of Impact Investing - A Finance Matters Workshop - October 2014Finance Matters
The slide deck from Finance Matters' workshop on Fundamentals of Impact Investing held in London in October 2014.
Finance Matters is a London-based social enterprise helping people in finance put sustainability at the heart of their career. Check us out @fncematters, LinkedIn, Facebook or at www.financematters.co.
Accelerating Impact Impact Investing & Innovative Financing for DevelopmentKarim Harji
The concept of innovative financing is a relatively recent addition to the development lexicon. Edward Jackson, a faculty member at the School of Public Policy and Administration at Carleton University, and Karim Harji, a co-founder and partner at Purpose Capital, will introduce the audience to innovative financing and impact investing through their report, Accelerating Impact: Achievements, Challenges and What’s Next in Building the Impact Investing Industry. The AKFC Seminars on Innovative Financing for Development, hosted by Aga Khan Foundation Canada in partnership with Carleton University’s School of Public Policy and Administration.
Inside out finance issue-Indigo Article Page 14-17Loren Treisman
This is the Bertha Centre for Social Innovation's (University of Cape Town, Graduate School of Business) Magazine Inside:Out. This series looks at innovative financing for social enterprises and includes an article by me on pages 14-17 which explores why Indigo Trust is willing to take high risks across a diverse social portfolio.
Social Finance and Impact Investing in CanadaKarim Harji
Presentation at OISE - November 21, 2012
• An overview of the state of social finance and impact investing across Canada
• An analysis of why Canada is well positioned to become a leader globally
• A participatory discussion on the key issues such as:
-- The perceived trade-offs between social impact vs. financial return;
--- How philanthropy can complement social finance;
--- Measurement of social value creation;
--- Legislation and public policy; and
--- Bridging silos between sectors and organizations.
Fundamentals of Impact Investing - A Finance Matters Workshop - October 2014Finance Matters
The slide deck from Finance Matters' workshop on Fundamentals of Impact Investing held in London in October 2014.
Finance Matters is a London-based social enterprise helping people in finance put sustainability at the heart of their career. Check us out @fncematters, LinkedIn, Facebook or at www.financematters.co.
Accelerating Impact Impact Investing & Innovative Financing for DevelopmentKarim Harji
The concept of innovative financing is a relatively recent addition to the development lexicon. Edward Jackson, a faculty member at the School of Public Policy and Administration at Carleton University, and Karim Harji, a co-founder and partner at Purpose Capital, will introduce the audience to innovative financing and impact investing through their report, Accelerating Impact: Achievements, Challenges and What’s Next in Building the Impact Investing Industry. The AKFC Seminars on Innovative Financing for Development, hosted by Aga Khan Foundation Canada in partnership with Carleton University’s School of Public Policy and Administration.
Inside out finance issue-Indigo Article Page 14-17Loren Treisman
This is the Bertha Centre for Social Innovation's (University of Cape Town, Graduate School of Business) Magazine Inside:Out. This series looks at innovative financing for social enterprises and includes an article by me on pages 14-17 which explores why Indigo Trust is willing to take high risks across a diverse social portfolio.
Social Finance and Impact Investing in CanadaKarim Harji
Presentation at OISE - November 21, 2012
• An overview of the state of social finance and impact investing across Canada
• An analysis of why Canada is well positioned to become a leader globally
• A participatory discussion on the key issues such as:
-- The perceived trade-offs between social impact vs. financial return;
--- How philanthropy can complement social finance;
--- Measurement of social value creation;
--- Legislation and public policy; and
--- Bridging silos between sectors and organizations.
Presentation on Impact Investing at the 2nd Annual Social Entrepreneurship Summit at Washington & Lee University's Williams School of Commerce, Economics and Politics.
ODA for Capacity Building in the Social Enterprise- and the SME-Sector in IndiaMartin Vogelsang PhD
Based on my long-standing experience as impact investor in India I would like to suggest that Official Development Assistance (ODA) coming into the country is disbursed more strongly towards capacity building (training, education) and supporting the incubation of viable social enterprises and inclusive businesses catering to the “Base-of-the-Pyramid”. Investing into this area of the Indian economy would not only help alleviate to poverty and at least partly solve some of the grave environmental problems the country is facing. Such an initiative could also help India’s corporate sector become more engaged in creating and scaling innovative solutions in the areas of technology or financial services that could open up new markets for them.
This area demonstrates the entrepreneurial efforts undertaken to change the underprivileged
society of the world which is popularly understood by Parhalad’s Bottom of the Pyramid.
Social enterprises are innovation since some years and these are capable to work with big
issues as satisfaction of business man or organizations. Innovation is actually a high-priced
division of an organization. Innovation is not just breakthrough in space science, satellite
communication, etc. but presenting a value proposition than past; when comes the idea of
society it provides the sustainability to innovation in the future instead of striving to be right
at high cost, it will be suitable to be flexible and plural at a lower cost. Social entrepreneurs
stand at the nexus between development, business and government. They open another
markets for the bottom-of-the-pyramid, innovate programs, empower the people they serve,
multiply resources and demonstrate their tangible effects for government and other bodies to
replicate which reveal how innovation and entrepreneurship at the very heart of
economically sustainable solutions. And, is a best solution for sustainable social development.
The common future can only be achieved with a better understanding of common concerns
and shared responsibilities.
Keywords: Social Entrepreneur, Development, Opportunity
Workshop given at the Willamette Valley Development Officers Annual Conference May 17, 2012.
Helping nonprofits to think strategically using a venture philanthropy mindset
Introduction to entrepreneurship. Topics: Lean Startup Methodology, Product-Market Fit, Market-Size Analysis, Customer Acquisition , Life Time Value and Revenue Streams
Alan Barrell, Entrepreneur in Residence at Judge Business School, spoke in the 'Alternative funding strategies' panel at the Cambridge Rare Disease Summit 2015.
A presentation supported by a research report that focuses on development issues in Africa. The report is themed Innovation and Impact and is presented in three sections, hindsight, foresight and insight
Presentation on Impact Investing at the 2nd Annual Social Entrepreneurship Summit at Washington & Lee University's Williams School of Commerce, Economics and Politics.
ODA for Capacity Building in the Social Enterprise- and the SME-Sector in IndiaMartin Vogelsang PhD
Based on my long-standing experience as impact investor in India I would like to suggest that Official Development Assistance (ODA) coming into the country is disbursed more strongly towards capacity building (training, education) and supporting the incubation of viable social enterprises and inclusive businesses catering to the “Base-of-the-Pyramid”. Investing into this area of the Indian economy would not only help alleviate to poverty and at least partly solve some of the grave environmental problems the country is facing. Such an initiative could also help India’s corporate sector become more engaged in creating and scaling innovative solutions in the areas of technology or financial services that could open up new markets for them.
This area demonstrates the entrepreneurial efforts undertaken to change the underprivileged
society of the world which is popularly understood by Parhalad’s Bottom of the Pyramid.
Social enterprises are innovation since some years and these are capable to work with big
issues as satisfaction of business man or organizations. Innovation is actually a high-priced
division of an organization. Innovation is not just breakthrough in space science, satellite
communication, etc. but presenting a value proposition than past; when comes the idea of
society it provides the sustainability to innovation in the future instead of striving to be right
at high cost, it will be suitable to be flexible and plural at a lower cost. Social entrepreneurs
stand at the nexus between development, business and government. They open another
markets for the bottom-of-the-pyramid, innovate programs, empower the people they serve,
multiply resources and demonstrate their tangible effects for government and other bodies to
replicate which reveal how innovation and entrepreneurship at the very heart of
economically sustainable solutions. And, is a best solution for sustainable social development.
The common future can only be achieved with a better understanding of common concerns
and shared responsibilities.
Keywords: Social Entrepreneur, Development, Opportunity
Workshop given at the Willamette Valley Development Officers Annual Conference May 17, 2012.
Helping nonprofits to think strategically using a venture philanthropy mindset
Introduction to entrepreneurship. Topics: Lean Startup Methodology, Product-Market Fit, Market-Size Analysis, Customer Acquisition , Life Time Value and Revenue Streams
Alan Barrell, Entrepreneur in Residence at Judge Business School, spoke in the 'Alternative funding strategies' panel at the Cambridge Rare Disease Summit 2015.
A presentation supported by a research report that focuses on development issues in Africa. The report is themed Innovation and Impact and is presented in three sections, hindsight, foresight and insight
Social entrepreneurs and social developmentTapasya123
This area demonstrates the entrepreneurial efforts undertaken to change the underprivileged
society of the world which is popularly understood by Parhalad’s Bottom of the Pyramid.
Social enterprises are innovation since some years and these are capable to work with big
issues as satisfaction of business man or organizations. Innovation is actually a high-priced
division of an organization. Innovation is not just breakthrough in space science, satellite
communication, etc. but presenting a value proposition than past; when comes the idea of
society it provides the sustainability to innovation in the future instead of striving to be right
at high cost, it will be suitable to be flexible and plural at a lower cost. Social entrepreneurs
stand at the nexus between development, business and government. They open another
markets for the bottom-of-the-pyramid, innovate programs, empower the people they serve,
multiply resources and demonstrate their tangible effects for government and other bodies to
replicate which reveal how innovation and entrepreneurship at the very heart of
economically sustainable solutions. And, is a best solution for sustainable social development.
The common future can only be achieved with a better understanding of common concerns
and shared responsibilities.
The Netherlands is facing public sector cuts in a similar way to the Uk has already experienced. This presentation was given to a public sector conference in Utrecht focused on \’new financial mechanisms\’ and illustrating innovative models from the UK
Transform Global - A model for a private world banksassbo
Transform Global (TG), previously Transform Capital Management, is a model for a private world bank, also known as a global impact investment bank, investing into funds which have a social, environmental and financial return. TG aims to address critical market failures caused by our current financial system, while tackling the environmental and social symptoms that are a by-product of the system.
Let’s find out the 5 Steps to Building a Social Enterprise:
1: Identify a Social Issue
2: Develop a Sustainable Business Model
3: Build a Strong Network
4: Measure and Communicate Impact
5: Seek Funding and Investment
Similar to Impact investment hub lunch 240511 (20)
1. Impact Investment: A New Asset Class?
That's what JP Morgan calls it
Social Finance, Impact Investment, and
Finance for Social Enterprise
A Conversation
Hub Lunch @ Islington
24 May 2011
2. Vancity Community Capital (“VCC”)
● Born out of a division of Vancity, Canada's largest credit union,
provides growth capital to high impact enterprises
● Vancity's objectives explicitly include improving community well-being,
supporting high social and environmental impact businesses, and
redefining wealth – has over Cdn$15 billion of assets under management
● VCC manages a portfolio of subordinated and structured loans of
around Cdn$45 million – with a further Cdn$25 million available to lend
● VCC launched the Resilient Capital Program in May this year to
invest in high impact opportunities that may feature higher risk or
require more patient capital – raised around Cdn$4 million and aiming to raise
a total of Cdn$10-15 million
● VCC works alongside other divisions and partners of Vancity, such as
Vancity Community Foundation and Vancity Community
Investment, which provide grants and technical assistance – ranging
from business planning to strategic grants to help social enterprises
through various stages of development
5. Impact Investment
Impact investments are investments intended to
create positive impact beyond financial return. They
require the management of social and
environmental performance in addition to financial
risk and return.
JP Morgan/ Rockefeller Foundation
8. Social Finance
Social finance is an approach to managing money
that delivers a social and/or environmental
dividend as well as an economic return.
SiG, Causeway, Volans - Building the Case for Social Finance in Canada
21 August 2009
Sustainable finance with a social or environmental goal.
Tim Draimin, TIDES Canada - 29 May 2007
Leveraging multiple sources of financing to achieve long term,
accountable social impact and economic return.
Al Etmanski, President, PLAN, Partner, Social Innovation Generation (SiG)
9. Social Finance & Impact Investment
Social impact bonds, Big Society Bank, Big Issue Invest – a specialised
provider of finance to social enterprises or trading arms of charities that are finding
business solutions that create social and environmental transformation, Bridges
Ventures – a sustainable growth investor, Microfinance, Kiva, Community
Development Finance Institutions, Credit Unions & Financial Co-ops,
Transform Capital Management – a global impact investment bank
Socially responsible investment, Philanthropy & Philanthrocapitalism,
Patient Capital, UnLtd, UnLtd Big Venture Challenge, NESTA, Young
Foundation, RSF Social Finance – founded as the Rudolf Steiner Foundation,
Nonprofit Finance Fund – Where money meets mission, Renewal Partners –
funding change through investments, grants, and collaboration, Vancity Community
Capital
Some frequently recurring phrases: mission-based, change, social and
environmental performance/ return/ benefits/ dividend, investment,
grants, finance, sustainable, growth, global
10. Challenges
● Gaps in language and terminology used amongst investors,
entrepreneurs, and social purpose business people
● Many professionals working at impact investment firms are from the
conventional investment sector (note: based on personal observation,
not empirical evidence)
● Lack of innovation, creativity, and openness in the impact investment
sector – does not mirror the organisations they seek to finance and
support – Slow to embrace co-design of finance, neither side seeing each other
truly as a partner, attempts to innovate with financial instruments rather than
addressing behaviours or culture of social finance
● Risk of value extraction and exploitation of social enterprises rather
than true capacity building
● Frequent use of terminology such as “fast growth”, “scale”,
“replicable”, which are not necessarily appropriate for social
enterprises
11. Challenges
What other challenges do you see or have you experienced?
Solutions & Opportunities
What are the solutions and opportunities to bridge the gap
between social financiers and the enterprises they want to
support?
Let's open up the conversation...
12. Ideas
● Impact investors and social financiers must look at their own business
model and strategy – Consider co-operative, open-source, and other
unconventional ways of doing things and ask themselves how they could apply those
models
● They should walk a mile in the shoes of their investee companies –
secondments to social enterprises, sit on the Board – and learn their
language, experience their issues first hand
● Invite social enterprises to shadow impact investors or conduct peer
reviews of business models and business plans – so that they can
understand better the investment process, improve transparency
● Impact investors and social financiers need to move out of their
comfort zone – step away from the numbers, examine behavioural
and intuitive aspects of investment in social enterprises – consider non-
financial incentives, measures, resources, and services (the importance of advice,
strong management teams and operational experience, training and continuing
education)
13. Stay in Contact
Bonnie Wong
At work: bonnie_wong@vancity.com or +1 604 877 8284
All the time: bonnie.o.wong@gmail.com
On Twitter: @BonnieOWong
Blog: http://beopenionated.wordpress.com (mainly about
impact investment and social finance, with links to my other
writing)