Equilibrium Consulting Sumira Jayabalan Lindsay Sullivan Annika Lewis Julia Godolphin
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Transcript of Equilibrium Consulting Sumira Jayabalan Lindsay Sullivan Annika Lewis Julia Godolphin
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Equilibrium Consulting Sumira Jayabalan Lindsay Sullivan Annika Lewis Julia Godolphin
AGORAPARTNERSHIPS
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Agenda
Opportunity
P-Bills
Fund the Future
Financial Analysis
Implementation
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Current Strategy
Opportunity P-Bills Fund the Future Finances Implementation
Agora Partnerships
Intermediary connecting early
stage entrepreneurs & investors
Impact entrepreneurs
The Accelerator Program
High growth potential
entrepreneurs
Goal: to be self-sustaining
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Financial Situation
Opportunity P-Bills Fund the Future Finances Implementation
81% of revenue from
private contribution
Accelerator program entirely
dependant on grants
Investments in entrepreneurs not accessible
to retail investors
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Decision Criteria
Opportunity P-Bills Fund the Future Finances Implementation
Generates revenue streams
Adheres to Agora strategy
Increases awareness of
impact investing
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Opportunity Statement
Opportunity P-Bills Fund the Future Finances Implementation
By introducing P-Bills for retail investors and the “Fund the Future” student fundraising challenge, Agora Partnerships will increase
both access to and awareness of impact investing, and will be able to cover 72-80% of the costs of the Accelerator program by 2015.
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P-Bills
Opportunity P-Bills Fund the Future Finances Implementation
Short term, moderate risk, zero coupon investments
People, Planet, Profits
What are P-Bills?
P-Bill Objectives• Introduce lower net
worth investors to impact investing
• Generate internal revenue
Investor Incentive• Financial & social
returns• Selects Accelerator
entrepreneur
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P-Bills
Opportunity P-Bills Fund the Future Finances Implementation
What are P-Bills?
Loan Terms 1 year $500 18% interest rate
6-9% to Agora
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Fund the Future
Opportunity P-Bills Fund the Future Finances Implementation
Fundraising challenge
Involve students &
leverage their skills
Increase awareness & raise funds
+ =
Competition between 10 schools; MBA mentors
Raise as much as you can while generating positive social impact
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Fund the Future
Opportunity P-Bills Fund the Future Finances Implementation
Fundraising challenge
Involve students &
leverage their skills
Increase awareness & raise funds
+ =
Gain experience in impact investing industry
Winner receives equity stake in the entrepreneur
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Leveraging Technology
Website
Search Engine
Advertising
Fund the Future Campaign
Retail Investors
Internet Advertising
Social Media
Innovative Media
Facebook, Twitter, YouTube
Blogs
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P-Bill Funding Implications
Opportunity P-Bills Fund the Future Finances Implementation
Able to generate all financing through P-Bills by 2015
Decrease in new firms to ensure sufficient retail investment
P-Bill Sales Projection:CAGR of 30.2% until 2020
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Self-Sustaining Initiative
Opportunity P-Bills Fund the Future Finances Implementation
Accelerator Program can be 72-80% Internally Financed by 2015
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Implementation
Opportunity P-Bills Fund the Future Finances Implementation
SHORT TERM(Present-End of 2011)
MEDIUM TERM(2012-2014)
LONG TERM(2015+)
1. Pursue relationship with Pay-pal and begin offering P-Bills
2. Assign MBAs to Schools
3. Beginning of ‘Fund the Future’ campaign 4. Limited expansion of the accelerator program
5. Customizing terms of P-Bills6. Exploring emerging investment opportunities
7. Consider integration of accelerator companies with developed business partners
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Opportunity Statement
By introducing P-Bills for retail investors and the “Fund the Future” student fundraising challenge, Agora Partnerships will increase
both access to and awareness of impact investing, and will be able to cover 72-80% of the costs of the Accelerator program by 2015.
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Question & AnswerOpportunity Back-UpAlternativesDecision Matrix
Detailed ImplementationShort term Implementation Medium term ImplementationLong term Implementation
Recommendation SupportNew P-Bills Web InterfaceNew Fund the Future InterfaceP-Bill CertificateWhat do retail investors get out of a P-Bill?Retail Investor ProfileP-Bill Sample AdDetails of the “Fund the Future” ChallengeWho is targeted with the Fund the Future student fundraising challenge?
Further Financial AnalysisIndustry ComparisonsLong Term RevenuesAccelerator funding NeedsP-Bill Funding Implications
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Summary
• Introducing impact investing to retail investors• Generate revenue
P-Bills
• Fundraising competition• Raising money and awareness
“Fund the Future” Student Challenge
• Ability to finance entrepreneurs exclusively through retail investors
• Primarily internal financing for accelerator program
Financial Results
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Alternatives
1. Adjust focus: Loans Agora makes own investments
2. Donation focus: Singular revenue stream Benchmark KIVA
3. Further leveraging student partnerships Dual focus: Investments (P-bills) +
Fundraising (Fund the Future)
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Decision Matrix
Generates revenue streams
Adheres to Agora Strategy
Increases Awareness
Adjust Focus: Agora making own
investments (Loans)
++ -- ++
Donation Focus: Singular Revenue
Stream
+ - +
Further leveraging student
partnerships
++ ++ +++
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Fund the Future Logistics
1 MBA per Accelerator company MBA assigned to each school selects team of 2
undergraduates Competition lasts 4 months
Criteria for Winner1. Raises the most funds2. Demonstrates positive social impact of fundraising activities3. Effectively uses social media to fundraise + communicate
message
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COMPANY PROFILES
LEARN MORE ABOUT P-BILLS
INVEST TODAY
FUND THE FUTUREP-BILLS
P-BILLS
Retail Investors all over the world are empowering entrepreneurs in developing countries, one investment at a time.
LEARN MORE >>
FUND THE FUTUREP-BILLS
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FUND THE FUTURE
FUND THE FUTURE
Undergraduate students raising capital for entrepreneurs in Central America through ways that will positively impact their communities.
LEARN MORE >>
TRACKING PROGRESS
SOCIAL IMPACT
FINANCIAL IMPACT
TEAM MEMBERS
INITIATIVE GOALS
BUSINESS IDEAS
FUND THE FUTUREP-BILLS
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Simple Investing With Flexibility
Option 1:12% to Investor
6% to Agora
Option 2:11% to Investor
7% to Agora
Option 3:10% to Investor
8% to Agora
Option 4:9% to Investor9% to Agora
Maximizing Personal Return Maximizing Social Impact
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P-Bill Certificate
500
500500
P-BILL - People, Planet, Profit
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Value PropositionP-Bill Investor
An Impac
t Invest
orFacilitating change and empowering developing
communities
Financial (5-8%) and Social Returns
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Student Profile
Demographic•Doing an Undergraduate degree•MBA•18-25
Geographic• North America/Europe
Behavioral• Access to a non-profit network• Job opportunities• Experience in working with emerging
businesses in developing economies
Psychographic•Entrepreneurial focus•Creative/Innovative•Background in education which
supports this cause
Undergraduate Students
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Investor Profile
Demographic• Small amount of
money to invest• Low-Medium
disposable income
Geographic• North American
Market
Behavioral• Desire financial
and social return
Psychographic• Using own
money to invest
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Intra-Industry Comparisons:Debt Investment Growth
No discernable pattern in trajectory of debt investments
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Long Term Revenues
Sensitivity analysis:
Industry Growth
Forecast:$400B-$1T
industry size by 2020
Base Case: CAGR of 30.20%
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Accelerator Funding Needs
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P-Bill Funding Implications (Full)
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Implementation: Short Term
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
MBA Mentor Selection Process
MBA Presentation of Challenge
Website Re-design
Team Application/Selection Period
Set up relationship with pay-palStart Selling of P-Bills
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Implementation: Medium Term
1. Start Fund the Future Student Challenge Fundraising by students – Feb-May 2012
2. Limited Expansion of Accelerator program 17,17,18 - # of additional companies in
2012,2013,2014 respectively Looking at all of Central America
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Implementation: Long Term
1. Customizing terms of P-Bills Adjust duration, return, and face value to
suit individual investor needs2. Exploring emerging investment opportunities
Evaluate structure of impact investing class Actively participate in market
3. Consider integration of accelerator companies with developed business partners
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Sample P-Bill Ad
Why buy a T-Bill when you can invest in a P-Bill?
People. Planet. Profit.
Learn more at agorapartnerships.org