Workshop Impact InvestingDiane Zandee

Jacques van der HorstLaura Cramer

Contents

• Introduction to impact investing

• The successful way of investing

• Large investors point of view

• Case Waka Waka

• Concluding remarks

Money: barrier to growth

Global Impact Investing Network survey of 158 impact investors

Growth investments

Source: DNB (2016)

Shares Bonds Real estate Other

Investors searching for impact: Social entrepreneurs have ideas!

Source: Social Enterprise Monitor 2013 en 2014

Employability

Economic development abroad

Social cohesion

Education and development

Health and wellbeing

Prevent climate change

Cleaner environment

Improve sharing

Poverty reduction NL

% of answers (multiple answers possible)

Investing in the future of Dutch social enterprises

Workshop Avans HogeschoolSocial Impact Ventures NLLaura Cramer

“Social business is the DNA for a new economic order”

Staffan Nilsson, President EU Economic and Social Committee

Investing in the future of Dutch social enterprises

We believe

In the power of entrepreneurship

to solve social and environmental issues

7

Investing in the future of Dutch social enterprises

Impact investing: impact AND return

8

Traditional Investing

ResponsibleInvesting

SustainableInvesting

Thematic Impact Investing

Impact First Investing

Philanthropy

Market returns

High-impact

Impact Investing

Investments are screened out basedon ESG risk

Focus on ESG practices that (may) enhance financial returns

Focus on solutions for societal challenges that justify below market returns

Seeks financial returns regardless of Environmental,Social or Governance (ESG) factors

Focus on solutions for societal challenges that create healthy returns

Focus on challenges that cannot generate a financial return

Investing in the future of Dutch social enterprises

11McKinsey & Company

Seed Start-upEarly-stage

growth

Later-stage

growth

€1.000.000

€ 500.000

€ 400.000

€ 300.000

€ 200.000

€ 100.000

€ 50.000

€1.000.000+

€ 25.000

Business

Angels

Foundations

Friends & family

VC / PE Funds

BanksFunding need

EUR

Phase

Mostly non-concessionary

Mostly concessionary

Overview of investor types available per phase and investment amount

Source: McKinsey (2016)

Need for capital in combination with support

Investing in the future of Dutch social enterprises

We are

A EUR 40 million venture fund for NL-based social enterprises in the scale-up phase

10

Investing in the future of Dutch social enterprises

How

11

Impact at the core of company &

entrepreneur

Scalable & profitable business model

Impact & financials aligned

Capital

Venture Assistance

1 2 3

Investing in the future of Dutch social enterprises

Taxi Electric:Cleaner city and labor participation

Investing in the future of Dutch social enterprises

Afval Loont:Recycling and labor participation

Investing in the future of Dutch social enterprises

1% Club:Mobilise time & knowledge for do-good projects

Investing in the future of Dutch social enterprises

Getting impact investing from start-up to scale-up

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What is needed

• More (operational) talent to bring ventures to scale

• More venture assistance

• Uniform impact measurement metrics

• Better match making between capital providers and social entrepreneurs

What we can expect

• Specialized impact funds

• Phase

• Impact sector

• Industry/market

• Impact investing main stream

Investing in the future of Dutch social enterprises

Thanks!

Who is the supplier?

Who is the supplier?

Attitude towards AM• till september 2008 (Zembla):

scarcely attention; trust, confidencepassivity

• after september 2008:growing attention; alarmed, unrest

negative screening• last years:

attention still growing; concern for the futureopportunities for positive screening

Grasping the opportunity• stimulate the public debate

• (also in education)

• make impact measurable

• be carefull in choosing the enterprises: no pitiable, tear-jerking projects

Case Waka Waka

Group 1: Waka Waka

- How can you convince the investors to invest in WakaWaka?

Group 2: Investors

- What questions do you investors have for Waka Wakabefore you will decide to invest or not in this company?

Case Waka Waka

Thanks!

Diane Zandee +31629560095 / diane.zandee@finchainconsulting.com

Laura Cramer +31648832467 / laura@socialimpactventures.nl

Jacques van der Horst +316-51460862 / info@jaqq.nl

Any questions?