Investing in impact startups - Democenter€¦ · Investing in impact startups [email protected]...
Transcript of Investing in impact startups - Democenter€¦ · Investing in impact startups [email protected]...
Investing in impact startups
[email protected] www.socialfare.org SocialFare @SocialFareCSI
Impact investing
©SocialFare®
Impact investing = social return + financial return
©SocialFare® 3
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
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
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
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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
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Impact investing is also developing in Italy and it is estimated that the potential market for 2020 will be € 2.8 billion
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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.
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Example
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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 »
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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
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…Ehnaces financial return
+140%
from IPO
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Measurement of impact investment
International
private equity
report example
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Finance an impact project
©SocialFare®
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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)
©SocialFare® 17
Different structures for different projects
• Associazione
• Coop
• Srl impresa sociale
• Srl innovativa ad vocazione sociale
• Srl
• Srl + coop
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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..)
Class exercise
©SocialFare®
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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?
Impact venture capital
©SocialFare®
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
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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
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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
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Centro Medico Santagostino
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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
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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
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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
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The survey shows that impact investing has profitable returns
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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 $
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Our VC - SocialFare Seed
©SocialFare®
In 2013 the first center of private social innovation in Italy was established
In 2016 SocialFare enhances its acceleration program
Three ways to
accelerate a startup
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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
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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
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What we offer?
Up to 100K€ in
cash seed funding
4 month full-time
acceleration
Network 50+
investor & mentor
Free desk at
Rinascimenti Sociali
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Where we invest in
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SocialFare acceleration programme
Selection 2-3 weeks
Call 2 months
Acceleration 4 months
Investor Day 1 day
ste
ps
Monitoring & Evaluation
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Our portfolio
©SocialFare®
Our investments
Public administration
trasparency
Women
safety
Culture
& art
Quality
of work
Ethical fashion Cultural heritage Services to families
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A Social Impact
Fashion and Lifestyle
Accessories Company
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Social Challenges
Dependance on Aid
Clinical Depression
68.5 Million
Forcibly displaced
people worldwide
25.4 Million Refugees
Source: UNHCR
The Social Problem
#lifestylecollection
The Products Luxury Fashion and Lifestyle Accessories
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The Products Luxury Fashion and Lifestyle Accessories
#resortcollection
Brand awareness - Influencers
Paris
Gstaad
Geneva
Gallipoli
Oman
London
Qatar
Bethlehem
Saint Tropez
Dubai
Distribution Offl ine
Exercise
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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)
Investing in impact startups
[email protected] www.socialfare.org SocialFare @SocialFareCSI