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Investing with Purpose Practice & Experience

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Investing with Purpose Practice & Experience

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  1. Investing with PurposePractice & Experience Richard Biggs, D3Jubilee April 16th, 2013

  2. What is a Social Enterprise?

  3. What is a Social Enterprise?

  4. What is a Social Enterprise?

  5. What is a Social Enterprise?

  6. What is a Social Enterprise? • Many definitions • For Profit / Non-profit

  7. What is a Social Enterprise? • Many definitions • For Profit / Non-profit • Local / Global

  8. What is a Social Enterprise? • Many definitions • For Profit / Non-profit • Local / Global • Impact Intrinsic/Extrinsic

  9. What is a Social Enterprise? • Many definitions • For Profit / Non-profit • Local / Global • Impact Intrinsic/Extrinsic • In Common:

  10. What is a Social Enterprise? • Many definitions • For Profit / Non-profit • Local / Global • Impact Intrinsic/Extrinsic • In Common: • Seek improvement for the Most Vulnerable

  11. What is a Social Enterprise? • Many definitions • For Profit / Non-profit • Local / Global • Impact Intrinsic/Extrinsic • In Common: • Seek improvement for the Most Vulnerable • Innovative

  12. What is a Social Enterprise? • Many definitions • For Profit / Non-profit • Local / Global • Impact Intrinsic/Extrinsic • In Common: • Seek improvement for the Most Vulnerable • Innovative • Market-based Solutions

  13. Why is Vulnerability important?

  14. Why is Vulnerability important? • Exposure to external shocks

  15. Why is Vulnerability important? • Exposure to external shocks • Financial crisis/misfortune • Education fees • Critical illness • Death

  16. Why is Vulnerability important? • Exposure to external shocks • Financial crisis/misfortune • Education fees • Critical illness • Death • Environmental crisis • Natural Disaster • Famine • etc

  17. Why is Vulnerability important? • Exposure to external shocks • Financial crisis/misfortune • Education fees • Critical illness • Death • Environmental crisis • Natural Disaster • Famine • etc The Bible Isaiah 58:6-7 Is not this the kind of fasting I have chosen: to loose the chains of injustice and untie the cords of the yoke, to set the oppressed free and break every yoke? Is it not to share your food with the hungry and to provide the poor wanderer with shelter - when you see the naked, to clothe them, and not to turn away from your own flesh and blood?

  18. Why is Innovation important?

  19. Why is Innovation important? • Philanthropy vs Corporations

  20. Why is Innovation important? • Philanthropy vs Corporations

  21. Why is Innovation important? • Philanthropy vs Corporations

  22. Why is Innovation important? • Philanthropy vs Corporations

  23. Why is Innovation important? • Philanthropy vs Corporations

  24. Why is Innovation important? • Philanthropy vs Corporations

  25. Why is Innovation important? • Philanthropy vs Corporations

  26. Why is Innovation important? • Philanthropy vs Corporations • Social Entrepreneurs need to find Market-based solutions to situations where Customers may be Unable to Pay, and secure funding from Non-Traditional sources

  27. What is a Social Enterprise? • A For-profit company that creates social impact which is intrinsic to the business model Impact-focused SE Miracle Company Social Impact Profit-focused SE Profit

  28. Financing Social Enterprises

  29. Financing Social Enterprises • For companies to grow, they need Capital • IMPACT INVESTING

  30. Financing Social Enterprises • For companies to grow, they need Capital • IMPACT INVESTING Impact Investing is the process of actively placing capital in businesses and funds that generate social and/or environmental good and at least return nominal principal to the investor. (Monitor Institute)

  31. Financing Social Enterprises • For companies to grow, they need Capital • IMPACT INVESTING Impact Investing is the process of actively placing capital in businesses and funds that generate social and/or environmental good and at least return nominal principal to the investor. (Monitor Institute) Principles of Investment Warren Buffett’s rule #1: Don’t lose money. #2: Don’t forget rule #1. Impact

  32. Financing Social Enterprises • For companies to grow, they need Capital • CAPITAL FLOWS

  33. Financing Social Enterprises • For companies to grow, they need Capital • CAPITAL FLOWS Investors

  34. Financing Social Enterprises • For companies to grow, they need Capital • CAPITAL FLOWS Investors Entrepreneurs

  35. Financing Social Enterprises • For companies to grow, they need Capital • CAPITAL FLOWS Investors Entrepreneurs CAPITAL

  36. Financing Social Enterprises • Many Barriers to Capital Flow Investors Entrepreneurs CAPITAL

  37. Financing Social Enterprises • Many Barriers to Capital Flow Scale Investors Entrepreneurs CAPITAL

  38. Financing Social Enterprises • Many Barriers to Capital Flow Scale Sophistication Investors Entrepreneurs CAPITAL

  39. Financing Social Enterprises • Many Barriers to Capital Flow Scale Sophistication Investors Entrepreneurs CAPITAL Commitment to Profit

  40. Financing Social Enterprises • Many Barriers to Capital Flow Scale Sophistication Investors Entrepreneurs CAPITAL Commitment to Profit Financial Viability

  41. Financing Social Enterprises • Many Barriers to Capital Flow Governance Scale Sophistication Investors Entrepreneurs CAPITAL Commitment to Profit Financial Viability

  42. Financing Social Enterprises • Many Barriers to Capital Flow Governance Scale Sophistication Investors Entrepreneurs CAPITAL etc Commitment to Profit Financial Viability Commitment to Impact

  43. Financing Social Enterprises • Need to Remove Barriers Governance Scale Sophistication Investors Entrepreneurs CAPITAL etc Commitment to Profit Financial Viability Commitment to Impact

  44. Financing Social Enterprises • For Impact Investing to become a sustainable channel for funding social enterprises…

  45. Financing Social Enterprises • For Impact Investing to become a sustainable channel for funding social enterprises… Barriers to Capital Flows must be removed

  46. Financing Social Enterprises • For Impact Investing to become a sustainable channel for funding social enterprises… Barriers to Capital Flows must be removed HOW?

  47. Financing Social Enterprises • Investing is about TRUST

  48. Financing Social Enterprises • Investing is about TRUST • Trust involves RISK

  49. Financing Social Enterprises • Investing is about TRUST • Trust involves RISK • Risk is about UNCERTAINTY

  50. Financing Social Enterprises • Investing is about TRUST • Trust involves RISK • Risk is about UNCERTAINTY • Uncertainty can be overcome with INFORMATION