1 / 11

Financing Alternatives: OACFDC Annual Conference June 1, 2004

Financing Alternatives: OACFDC Annual Conference June 1, 2004. Our Mission. Invest in businesses that create employment in economically challenged communities Help these organizations to gain scale and exist without subsidies

Mia_John
Télécharger la présentation

Financing Alternatives: OACFDC Annual Conference June 1, 2004

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Financing Alternatives: OACFDC Annual ConferenceJune 1, 2004

  2. Our Mission • Invest in businesses that create employment in economically challenged communities • Help these organizations to gain scale and exist without subsidies • Help these organizations provide improved social outcomes and financial self sufficiency for the individuals they employ • Become a catalyst for encouraging other innovative approaches to solving important social issues

  3. Our Vision Create a network of businesses that are . . . • Financially self sufficient • Growth oriented • Significant in size • Achieving improved social outcomes

  4. What We Bring to the Table • Management team has 30 years of combined experience in the private sector • Founder has extensive experience as entrepreneur and CEO • Partnership with strategy consulting firm The Monitor Group • Business Experience / Expertise • Extensive social enterprise research in Canada and the US • Hands-on social enterprise experience • Hands-on experience with Social Return on Investment framework • Social Enterprise Expertise • Variety of financing alternatives offered • Backed by C$10MM in initial funding by the founder • Relationships with regional co-funders • Appropriate Capital

  5. Financing Alternatives • Provided through funding partnerships • Grants are generally in the C$20K to C$100K range • Provided only to enterprises acting with a ‘qualified donee’ • Grants • Loans are generally in the C$50k to C$200k range • Interest rates will be assessed based on the risk profile of the business and the value-added support required • Businesses must pass due diligence and SCP will take an ongoing governance role • Loans • Mostly subordinated debt with “sweeteners” (e.g. royalties) • Desired rates of return are assessed based on risk profile and value-added support required • Businesses must pass due diligence and SCP will take an ongoing governance role • Near Equity

  6. Our Current Status • Began actively seeking investments in 2002 • Looking to invest approx. C$10,000,000 over 10 years • Reviewed over 200 business plans from across the country • Total investments to date of approximately C$1MM • Provided financing for 8 businesses

  7. Portfolio Sample: Inner City Renovations (ICR) • Start-up home renovations company in Winnipeg Manitoba • Joint venture of several nonprofit housing corporations • Renovates run-down housing in the inner city – a niche market • Employs low-income inner city residents, mostly Aboriginal Canadians • Goal is to become employee owned over time Description SCP Investment • $200,000 in equity and loans • Co-invested with local funder (Community Ownership Solutions) • Funded start-up costs and working capital SCP Value Added • Support strategy, financial planning, HR and marketing functions • Advise on the creation of social support infrastructure and measurement • Take a leadership role on the Board of Directors

  8. Current Results • Employs low income individuals from inner-city Winnipeg • Employs up to 25 full time staff 2/3 of whom are target employees • Majority of employees are aboriginal • Social worker hired to assist with issues unrelated to the job • Laying groundwork for future employee ownership • Social Mission • 2003 business revenue of approx. C$1MM • Expect break-even in year 3 • Professional management has been added and skills re-aligned • Financial Mission • Revenue generating partnerships with nonprofit housing corps. • Leverage social mission to secure other inner city contracts

  9. Our Next Steps • Learn by doing: • Complete 5 - 10 more deals over the course of the next 2 years • Test different models: • Test franchising concept • Invest in for-profit and non-profit enterprises • Scale our portfolio companies: • We have invested in businesses that are conducive to growth • We see opportunities to expand into new markets • We see opportunities to expand within current markets

  10. What We are Looking For in a Business Plan • Modest Profit Potential • Through strong business principles not through subsidies • While meeting financing obligations • Strong Growth Potential • We are looking to create dozens of jobs in each of our portfolio companies • Balanced Financial and Social Missions • The business must draw the majority of its employees from an economically challenged community • Where necessary, the business should provide for the social needs of its employees

  11. Contact Information Post: 205 Richmond Street West, Suite 601 Toronto, Ontario Canada M5V 1V3 Phone: (416) 646-1871 ext. 106 Online: sean@socialcapitalpartners.ca www.socialcapitalpartners.ca

More Related