Post on 21-Jun-2015
Melissa Richer
melissa@aylluinitiative.org
Brazil • New York
the ayllu initiativeputting social enterprise on the map
INFORMATION is our product. We believe the field of social enterprises operating in BOP markets can only mature with information. Information is needed for maturity, scaling impact, and reaching millions more people.
DEFINITION: We focus on social enterprises in BOP markets that are mission-driven (aim to solve a root cause of poverty) and on track to break-even (sustained through revenue).
CollectWe track the most BOP social enterprises in the world (we also track their supporters).
We get to know them, and they submit data & information every 6 months.
AnalyzeWe analyze it according to what clients want to know.
ShareWe distribute it in a customized format that is easy to digest.
VisionSpring sells reading
glasses to the poor on3 continents
Mandalla helps small
farmers succeedin Brazil
What We Do
Why We Do It (The Opportunity)
Social Enterprise Demand
73% of social enterprises want better information.
Funder/InvestorDemand
92% of funders would pay for better information.
“I want to know how I fit into the global picture and what I can learn from my peers.” - Anand Shah, Sarvajal Water
“It’s time to move beyond anecdotes to collective data. I want benchmarks and context.” – Kelly Michel, Vox Capital
Results from Ayllu survey of 32 social enterprises
and 25 ecosystem
actors
Scarce• Little information is available and it is quickly outdated and rarely updated.
Unreliable
• Available information lacks consistency and comparability, and is hard to quantify.• Due diligence is expensive and difficult; most information is anecdotal.
Inaccessible• It is fragmented by theme and market. • It is not well-organized and it is hard to find. • It is very often undocumented.
Information is a missing link.
SURVEY
Collect
Funders/Investors
Social Enterprises
Academia Corporations
How We Do It
ConnectivityBusiness Models
Best PracticesTrendsImpact
Ecosystem• social enterprises• funders• companies• regulation• nonprofits• MFIs• etc.
Business • business model• impact metrics• projections/goals met• financials• challenges• innovations• etc.
Analyze
Share
BetterInformation
BetterDecisions
= Scaling Impact(Millions of $USD saved)
=
BenchmarksHistorical DataCase Studies
What We Produce
Analyze
Sarvajal has a water purification machine, but it is too expensive for the entrepreneurs to purchase upfront. As a result Sarvajal has to assume the debt because it can’t find an investor to purchase and lease back its technology.
Financing Challenge
SELCO’s customers can’t afford a 15% down payment on electricity. SELCO made a deal with big banks to guarantee the customer’s loan. This strategy is something Sarvajalmay consider adopting instead of operating leases.
Solutions Map ExampleFinancing Solution
REPORTINGWe interviewed 32
social enterprises in 17countries. Here is a
sample of the analysis.
How We Make Money
Sliding ScaleFree Fee-basedSliding Scale
ReportsiuMAPPlatform to
interact with data & ‘solution maps’
of challenges & innovations.
Sector reports, including an
Annual Report
On-demand data, due diligence,
maps, &advisory services.
ConsultingMembershipPremium access
to iuMAP & customized information
provided by Ayllu
Some clientscan pay a lot.
Social Enterprises
Corporations &Large Funders Funders &
UniversitiesAnd they subsidize
clients who can only pay a little.
Products
Share
0
1000
2000
3000
4000
5000
6000
# Tracked
# Surveyed
How We’ll Scale
Triple insize by
December
By 2013, we aim for
our database to grow
10x
We aim to survey every social enterprise
(& track every ecosystem actor)
3x
# BOP Social Enterprises
How do we build our database?
SPONSORS & CLIENTS
We map by industry & market ecosystem to get
statistically significant sample sizes.
These maps are paid forin 2 ways:
Sponsors & Clients
For example, an energy map could be sponsored by an
energy company. Or Ayllu could be hired by an
investor to do a map of energy.
In both cases Ayllu shares findings on iuMAP.
How We Fit into the Global Landscape
GIIRS
IRIS
Ratings for
Funders
MIX
Market
Bloomberg
& Gartner
Ayllu is working with GIIRS to align our surveys. We
hope to share information and encourage social
enterprises to get GIIRS rated.
Standard
Metrics
We’re incorporating IRIS metrics into our surveys and
are encouraging social enterprises to adopt them. We
will provide feedback to IRIS on how social enterprises
are responding to IRIS metrics.
Microfinance
Sector
Ayllu will play a similar role to MIX Market for the social
enterprise sector, although we will provide different
information products and advisory services.
Financial &
Technology
Sectors
Like Bloomberg, Ayllu will customize information from
its database to users’ needs. Like Gartner, Ayllu will be
a hub for independent contractors worldwide, who can
use our database for consulting projects and reports.8
Source Focus Differentiators
Who We Are
Selected Advisers• Scott LeFevre
International Youth Foundation• Rodrigo Brito
Aliança Empreendedora• Jason Fairbourne
Microfranchise Solutions• Eric Leenson
Instituto Ethos & Progressive Asset Mgmt
• Francisco NogueraNext Billion
• Kelly MichelArtemisia & Vox Capital
• Greg Van KirkCE Solutions
• Morgan SimonSocial Venture Network
Team42 years total work experience on 5 continents in the private,
public, and social sectors
Full-Time• Melissa Richer (Founder)• Nate Heller (COO)• Melanie Quall (Intern)
Volunteers ( 40 hrs/week)• Monica (Analyst)• Evan, Daryl, Dexter (Map)• Curtis (Database)• Shital, Tayo (Next Billion)• Evan F. (Accounting)
We built a global foundation and arenow ready to bring Ayllu to local markets
What We’ve Accomplished
PublishedPartnerships Finalist
Methodologyfor collection, analysis, and distribution.
Database• 370 enterprises• 57 countries•210 ecosystem actors
iuMAP’s launchwith Next Billion had visitors from 78 countries in first month.
“Investing with good information isgood business. Investing with bad
information is risky business.”- Morgan Simon, Social Venture Network
“A map is highly demanded and its value for deal flow and due diligence is tremendous.”
- Graham Macmillan, Citibank Foundation
“We have our heads down, trying toget the right operational strategy. Maybe someone else has already
discovered a similar strategy and we don't know about it.”
- Peter Eliassen, VisionSpring
I know my peers, but it’s hard to keep up with their rate of innovation. How can I
learn from their latest successes?- John Keane, Solar Aid
FUNDERS SOCIAL ENTERPRISES
Why Ayllu Matters (in their words)
“If we could get 80% of market data from a third party, and it was reliable,
we would make 33% more investments.”
- Ross Baird, First Light Ventures
“Measuring scale and impact at the network level...is a more accurate measure of the true scale of social
change and a better way for investors to gauge the return on their social investment.” - McKinsey Consulting
I love this! Game changer.- Mike
iuMAP TESTIMONIAL
This is going to be an amazing resource for our sector - it's time we mapped out all of our collaborative social enterprise efforts
across the developing world and shared our knowledge and connections!
- Nilima Achwal, William Davidson Institute