Social Investment Partners

Venture Philanthropy in Japan

Fragmented SPO Market in Japan

Among 50,000 SPOs, most are struggling in small scale

Few SPOs that maintain sustainability to maximize social

impact

Existing supporting organizations focus on early stage, in small

amount, usually for a single year.

CSR focuses on specific sector or field of assistance. Individual

probono is based on volunteers at

ado-hoc

1

Business scale

10M

50M

20M

Small number of large scale businesses

Medium scale businesses with the potential to grow

Large number of small scale non-profit organizations

200-300M

No. of organizations

Distribution of the business scale and quantity of SPOs in Japan

SIP VP Model

Existing Intermediaries

Strong Demand for Long-term

Financial and Managerial Support with Governance

2

Who we are?

VP organization founded in 2012, by seven business sector veterans with average more than 20 years of experience in venture capital,

private equity, corporate finance and management

Manage JVPF (Japan Venture Philanthropy Fund) in the amount of 150M yen with Nippon Foundation. Donors are business professionals,

business owners, corporates. Nippon Foundation commit 1:1 matching

Focus on development stage. SPOs with proof of concept to expand social impact

Probono commitment: invested more than 1,000 hours in aggregation

Bain & Co: strategy consulting

Clifford Chance: legal counsel

VOX Global Japan: communication consulting

One international accounting firm joining this year

3

Thorough DD to identify and measure social impact utilizing TOC and Logic Model. Main selection criteria is:

Innovative approach and solution to social issues

Measurable social impact and its scalability

Sustainability of operation

Management team

Mold business plan with potential investees to design support plan:

Long term financial support with various instruments and milestones

Long term managerial support with road maps with governance

Portfolios:

NPO After-School (2013): Achieved 3-year business plan by one year ahead. Number of schools and beneficiaries has grown by 3 times.

Started operation at public schools based on their best practice at

private ones. Revenue has grown from 40M yen to 200M yen.

Teach For Japan (2014)

What we do?

APRIL 21, 2015

Social Impact Partners aims to change peoples lives for the better through financial, human and intellectual support for Hong Kongs social purpose organizations, using the venture philanthropy approach.

Our Vision

Geography: Hong Kong

Sectors of Interest: Primarily in education, youth, employability

Size of investment: HKD 1 3 million

Investment period: Periodic disbursement over 3 to 5 years vs. performance indicators

Stage: Early-mid stage organization in process of scaling

Investment Strategy

Scale up proven programs/ enterprises addressing critical social issues

Prove concept of VP against the liability of newness in Asia

Objectives

HKD 15 million raised

Vehicles for both grants and social investments established

Strategic partners across key operational functions

Reviewed 40 deals with 3 in due diligence and 1 approved for investment

Progress to Date

Focusing on providing non-financial support is critical to the Social Impact Partners model and to helping organizations become strong, more robust and sustainable

Can be sourced from investors, paid consultants and pro bono resources

Developing Resources

Strategic Partners

Pre-launch market profiling

Sources of deal flow:

Foundations

Social investors

Consultants

Industry groups (HKCSS, HKFx. TWF, etc.)

Need:

To articulate the benefits of an engaged funder relationship

To provide high level of early stage. pre-application support

Generating Deal Flow

Assessing Impact

Key Question for SPOs:

What outcome i.e. social change, are you striving to achieve?

Deal flow

Development of network

Capital deployment

Co-investments

Portfolio health

Quarterly KPI Reporting

APRIL 21, 2015