Published on August 18, 2009
Financing social enterpriseS
Humera Fasihuddin & Jennifer Keller Jackson, NCIIA
AI2V Sustainable Vision, August 2009, Cambridge, MA
financing options for SOCIAL ENTERPRISES $ Net Profit Net Loss T Value revenue Customer Funding (Advanced orders, Microfinance, Retainers, Consulting, Company Profit) Self, FFF, Competition, Strategic for profit funders SBIR, STTR, Gov’t Angel Investors (VentureWell)* Venture Capital* PRI non-profit funders NCIIA Univ. Discretionary Self, FFF, Competition, Strategic Gates Foundations Gov’t Grants to Univ.
what matters to investors Financial People self, NCIIA Impact angel Market Technology venture capital debt 25% 50% 75% 100%
impact investors :: for profit (sampling) these categories are not fixed early/seed angel venture capital acumen fund gray ghost ventures commons capital venture well investor’s circle boston harbor angels (each city has them) kiva.org rice, oxford, GSVC b-plan competitions SBIR/STTR grants Impact investing :: investment that generates social and environmental value as well as financial return (source: rockefeller foundation)
impact loans or grants :: non profit (sampling) these categories are not fixed early/seed grants expansion foundations (scale) nciia university discretionary alumni NGOs gov’t grants (NSF, NIH, AID) gates foundation clinton global initiative schwab foundation skoll foundation annenberg foundation shell foundation good capital echoing green some foundations Program Related Investments (PRIs) :: investments made by foundations that involve the potential return of capital. PRIs include financing methods commonly associated with banks or other private investors, such as loans, loan guarantees, and even equity investments in nonprofits or in commercial ventures for charitable purposes. (source: foundation center)
food for thought :: spend time finding investors vs ‘just do it’ An increasing breed of ‘Impact Investors’ are looking for social enterprises (see video) SocCap Conference: http://www.socialbrite.org/tag/social-enterprise/ You can spend your time thinking, planning & fine-tuning… OR you can start demonstrating traction (see video) KIVA, Premal Shah, Founder: http://www.alternativechannel.tv/ communication-durable/videos/Social-Edge/Premal-Shah-Kiva-X-interviews/ 1640/;jsessionid=9A9DF868C7E08D193FCE04A7C77AB42D
Thank you Humera Fasihuddin & Jennifer Keller Jackson, NCIIA AI2V Sustainable Vision, August 2009, Cambridge, MA
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