Investing in impact startups - Democenter€¦ · Investing in impact startups [email protected]...

55
Investing in impact startups [email protected] www.socialfare.org SocialFare @SocialFareCSI

Transcript of Investing in impact startups - Democenter€¦ · Investing in impact startups [email protected]...

Page 1: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Investing in impact startups

[email protected] www.socialfare.org SocialFare @SocialFareCSI

Page 2: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Impact investing

©SocialFare®

Page 3: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Impact investing = social return + financial return

©SocialFare® 3

Page 4: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Investing to develop new models

Public sector

NOT SUFFICIENT for

cuts needed

IMPACT INVESTING

New solutions and

business models

Private sector

It is not a solution

for everyone

©SocialFare® 4

Page 5: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Social value generates financial value

For users

For communities

New models

The recognition of this great value

produced for the community will

also increase the economic value

of our companies.

New jobs Improving

the quality of services

More equitable

distribution of value

among all social actors

Economic growth

SOCIAL

IMPACT…

…CREATE

ECONOMIC

VALUE

©SocialFare® 5

Page 6: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Impact investing = 36Mld$ managed assets in the world

Impact investing Assets under management, by sector, Mld $

Fonte: Global Impact Investing Network, 2016

• $ 36 billion managed according to the philosophy of impact investing in 2015

• Large institutional investors, BlackRock, Goldman Sachs, Bain Capital etc have launched funds or impact investing divisions

• The G8, the UN and also the European Union are promoting the impact invesing under various forms

©SocialFare® 6

Page 7: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Strictly impact investing market in Italy in 2018

Strictly Impact €210,5 milioni

Impact €1,5 miliardi

Almost Impact €6,5 miliardi

210,5

MLN

©SocialFare® 7

Page 8: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Impact investing is also developing in Italy and it is estimated that the potential market for 2020 will be € 2.8 billion

8

Page 9: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

60+ Impact investors in Italy

• Agenzia per la Coesione Territoriale

• Anonimo

• Avanzi

• Banca Prossima

• Banca Popolare Etica

• Banco BPM

• BCC

• BNL

• Cassa Depositi e Prestiti

• Compagnia di San Paolo

• Equiter s.p.a.

• Etica SGR

• Etimos

• Finde s.p.a

• Finlombarda

• Fondazione Accenture

•Fondazione con il sud

•Fondazione CRC

•Fondazione Cariplo

•Fondazione Lang Italia

•Fondazione per l’Italia Sociale

•Fondazione Social Venture Giordano dell’amore

•Fondazione Sviluppo e Crescita (CRT)

•Fondazione Vodafone

•Garnell

•Genera s.p.a.

•Generali Italia s.p.a.

•Giorgiana Norarbartolo PFC

•Hermes Capital

•lmpact Alliance Fund

•ImpactHub Milano s.r.I.

• Invitalia

• Lendlease

• MainStreet Partners

• Make a cube3

• Oltre venture

• Opes Fund

• Pierri Philantropy Advisory s.r.l.

• Rancilio Cube s.r.l.

• Sefea

• Sella SGR

• SocialFare Seed

• Société Générale

• UBI Banca

• Unicredit

• Unipol Sai Assicurazioni S.p.a.

©SocialFare® 9

Page 10: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Example

©SocialFare® 10

Page 11: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Example: Brunello Cuccinelli

« The constant attention given by Brunello Cucinelli to the territory and to all

the individuals working for the company are the basis of long-term

development. The model of sustainable and polite growth supports and

supports the positioning recognized to the brand in the high end of luxury »

©SocialFare® 11

Page 12: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Social value…

• The company pays its employees twenty percent more than the Italian average of wages in the manufacturing industry

• His employees finish the job at half past five and do not send work emails overtime

• Created the "Scuola dei mestieri", where subjects such as "mending and rowing", "cutting and packaging", "tailoring and masonry" are taught.

• Cuccinelli finances several cultural and restoration projects Construction of various parks

©SocialFare® 12

Page 13: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

…Ehnaces financial return

+140%

from IPO

13

Page 14: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Measurement of impact investment

International

private equity

report example

©SocialFare® 14

Page 15: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Finance an impact project

©SocialFare®

Page 16: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

©SocialFare® 16

How to finance an impact project?

• Grant (foundation and institutionals)

• Donations (private)

• Debt (banche etiche o convenzionali)

• Equity (fondi impact)

• Crowdfunding (equity, debit, donation and reward base)

Page 17: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

©SocialFare® 17

Different structures for different projects

• Associazione

• Coop

• Srl impresa sociale

• Srl innovativa ad vocazione sociale

• Srl

• Srl + coop

Page 18: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

©SocialFare® 18

How to coose?

• Impact profit vs no profit

• Few founders vs more founders

• High growth vs slow growth

• 20-30+ y/o founders vs 40+

• Search for exit vs build and hold

• New or existing company (eg Coop..)

Page 19: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Class exercise

©SocialFare®

Page 20: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

©SocialFare® 20

Exercice: understanding the best structure for you

• Write dow who you are:

• New or existing?

• How many founders?

• How many people involved?

• Search for profit or low/no profit

• What impact?

• Looking to grow turnover double digit every year?

• Full time work or part-time?

• Other significant details?

Page 21: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Impact venture capital

©SocialFare®

Page 22: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Why venture capital and impact investing together?

In recent years new venture capital funds were

born, investing in start-ups or in young

companies that are economically sustainable

and which face the goal of creating a positive

social impact

©SocialFare® 22

Page 23: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Oltre Venture

• In 2006 born Oltre venture, the first Social Venture Capital in Italy

• Over I has raised € 8m from 21 rich investors and has in 17 companies in different sectors: Microfinance, Temporary Social Housing, Healthcare...

• In 2015, Oltre II was established with € 23m with investments for families, the elderly, young people and children

©SocialFare® 23

Page 24: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Centro Medico Santagostino

• Offer quality health services at affordable prices

• Founded at the end of 2009, the CMS is a chain of clinics that provide the main medical services

• 8 open medical centers (7 in Milan and 1 in Bologna); +120,000 patients served since 2009 to date

• It achieved economic sustainability at the end of 2014

©SocialFare® 24

Page 25: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Centro Medico Santagostino

©SocialFare® 25

Page 26: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Permicro

• In 2007, PerMicro was founded, the first microcredit company in Italy

• It provides loans to non-bankable people allowing them to become bankable

• From 2007 to today + € 82 million disbursed, 4,000 jobs created

• It achieved economic sustainability at the end of 2014 and is considered a successful business model in Europe

©SocialFare® 26

Page 27: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Toniic: the first global community of impact investors

It was founded in 2010 in San Francisco and is a community that collects:

• Individuals, family offices, foundations, funds

• 160 members representing more than 360 investors in 22 countries

• www.toniic.com

©SocialFare® 27

Page 28: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

T100-2016 Launch Report

• Report on 51 impact investing portfolio

• Three different types of investors (HNWI, Family Office, Foundation) with portfolios from 1 million to +100 million dollars

• Portfolios dedicated to different themes Impact: Education, Health, Community Development, Sustainable Agriculture, Environment, Cross Sectoral, Poverty, Financial System, Other

• Investor's domicile: 61% US, 24% EU, 10% Africa, 5% Asia

©SocialFare® 28

Page 29: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

The survey shows that impact investing has profitable returns

29

Page 30: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Example: Kim Jordan founded New Belgium Brewery

• Kim Jordan founded New Belgium Brewery

• Society: environmental protection and creation of a work environment that respects and protects workers as much as

possible

• The company was sold to company employees thanks to a stock

option program. Kim wanted to share the company's success with

his employees

• Part of the profits were used to create a 15 M $ impact investing

foundation

• Kim has today an estimated assets of 225 M $

©SocialFare® 30

Page 31: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Our VC - SocialFare Seed

©SocialFare®

Page 32: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

In 2013 the first center of private social innovation in Italy was established

Page 33: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

In 2016 SocialFare enhances its acceleration program

Three ways to

accelerate a startup

©SocialFare® 33

Page 34: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

2018: launch of SocialFare Seed fund

• SocialFare launched SocialFare Seed at the end of 2017

• First seed impact venture capital in Italy

• 100K€/startup average seed

• 6 private private investors

• SocialFare seed is not only capital but also a big network to open new sales channels for the starutps

©SocialFare® 34

Page 35: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

What are we looking for?

Strongly

motivated and

dedicated full-

time teams

Innovative and

scalable

business

impact models

Start-ups able

to grow

nationally and

internationally

©SocialFare® 35

Page 36: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

What we offer?

Up to 100K€ in

cash seed funding

4 month full-time

acceleration

Network 50+

investor & mentor

Free desk at

Rinascimenti Sociali

©SocialFare® 36

Page 37: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Where we invest in

©SocialFare® 37

Page 38: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

SocialFare acceleration programme

Selection 2-3 weeks

Call 2 months

Acceleration 4 months

Investor Day 1 day

ste

ps

Monitoring & Evaluation

©SocialFare® 38

Page 39: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Our portfolio

©SocialFare®

Page 40: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Our investments

Public administration

trasparency

Women

safety

Culture

& art

Quality

of work

Ethical fashion Cultural heritage Services to families

©SocialFare® 40

Page 41: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

A Social Impact

Fashion and Lifestyle

Accessories Company

41

Page 42: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Social Challenges

Dependance on Aid

Clinical Depression

68.5 Million

Forcibly displaced

people worldwide

25.4 Million Refugees

Source: UNHCR

The Social Problem

Page 43: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

#lifestylecollection

The Products Luxury Fashion and Lifestyle Accessories

43

Page 44: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

The Products Luxury Fashion and Lifestyle Accessories

#resortcollection

Page 45: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Brand awareness - Influencers

Page 46: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Paris

Gstaad

Geneva

Gallipoli

Oman

London

Qatar

Bethlehem

Saint Tropez

Dubai

Distribution Offl ine

Page 47: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that
Page 48: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that
Page 49: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that
Page 50: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that
Page 51: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that
Page 52: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that
Page 53: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Exercise

©SocialFare® 53

Page 54: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

©SocialFare® 54

How to finance an impact project?

• Grant (fondazioni)

• Donations (private e istituzioni)

• Debt (banche etiche o convenzionali)

• Equity (fondi impact)

• Crowdfunding (equity, debit, donation and reward base)

Page 55: Investing in impact startups - Democenter€¦ · Investing in impact startups info@socialfare.org SocialFare @SocialFareCSI . Impact investing ©SocialFare® ... of clinics that

Investing in impact startups

[email protected] www.socialfare.org SocialFare @SocialFareCSI