NESsT

NESsT

(c) NESsT 2003 not for distribution, duplication or quotation without written permission from authors. www.nesst.org

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NESsT Venture FundA philanthropic investment fund for emerging market countries

Bratislava – June, 2004NESsT

www.nesst.org

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The NESsT Venture Fund is the only international philanthropic investment fund dedicated to supporting social enterprise in emerging market countries.

The NESsT Venture Fund provides financial and capacity-building support to a select portfolio of social enterprises intended to further the financial sustainability and further the mission impact of the nonprofit parent organization.

NESsT Venture Fund: Purpose

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NESsT Venture Fund: Investment Strategy

• Identify/ Screen proven or promising nonprofit organizations;

• Help prepare venture team through rigorous feasibility/business planning guidance and support

• Invest in and add value to a portfolio of social enterprises through multi-year financing and capacity- building assistance;

• Measure impact and document the financial and social return on investment of the portfolio;

• Develop a sustainable capitalization strategy for providing on-going support to future entrepreneurs;

• Document and share learnings internationally.

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The NESsT Venture Fund supports social enterprises at different stages of the enterprise development process:

• an “early stage” portfolio of social enterprises requiring rigorous feasibility/business planning support;

• a “later stage” portfolio requiring multi-year financing and capacity- building assistance to start-up or expand a social enterprise;

NESsT Venture Fund: Portfolios

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NESsT Venture Fund: Early Stage Portfolio

2 3Feasibility Study

Business Plan1Pre-Feasibility

Study

1. Pre-Feasibility: NESsT works with selected groups to assess general feasibility of social enterprise idea(s).

2. Feasibility: NESsT works with selected groups to assess full feasibility, organizational and financial readiness for their proposed enterprise.

3. Business Plan: Selected groups receive small “venture planning grants” (approx. US$1500-2500 and NESsT technical assistance to develop detailed business plans.

Business Plan Defense: Groups present and defend their plan to a Business Advisory Circle convened by NESsT.

Early Stage Portfolio

Enterprise enters later stage portfolio

Later Stage Portfolio

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Portfolio

Capital InvestmentsPackage of financing tailored to organization/enterprise needs;

Performance Management

Venture Planning Grants

Organizational Development Grants

NESsT Staff

Capacity-BuildingClose, tailored technical assistance from NESsT and strategic partners

Business Advisory Network

NESsT Entrepreneurs-in-Residence (NESsTERs)

NESsT Investors Circle

Enterprise-specific CapacityGrants (& Loans) Shared learnings

from others in portfolio

Strategic Alliances

NESsT leverages a variety of financial and capacity-building resources to support our later stage portfolio over a multi-year period:

NESsT Venture Fund: Later Stage Portfolio

Technology Support

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Portfolio

NESsT Investors

Circle

Institutional Members

Individual Members

Institutional Members:

Corporations, foundations, and other organizations providing financial and/or in-kind support to NESsT.

Individual Members:

Individuals or groups of individuals providing financial and/or in-kind support to NESsT.

NESsT is building an Investors Circle comprised of two types of funders:

NESsT Investors Circle: Opportunity to Invest

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Vydra(Slovakia)www.vydra.sk

Mission: Preservation of local traditions, culture & environment in rural Microregion, Cierny Hron.

Social Enterprise: With support from NESsT, Vydra has launched a "Tourist Camp” (café, cultural, environmental & recreational events) in the Vydrovská Valley to encourage tourism, create local employment opportunities, and sustain itself.

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The NESsT Vision: Three Levels

3. Organization Level: NESsT envisions effective, high impact nonprofit organizations with sufficient, flexible, and sustainable sources of income.

1. Market Level: NESsT envisions a new marketplace more responsive to needs of local communities and low-income people.

2. Sector Level: NESsT envisions a diverse nonprofit capital market that provides nonprofit organizations with the appropriate types of financing necessary at the various stages of their development.

Market Level

Sectoral Level

Org. Level

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Current NESsT Venture Fund Portfolio Members Later Stage Portfolio

Energy Center Bratislava (Slovakia) http://www.ecb.skMission: Overview: Energy Center Bratislava (ECB) was founded in 1993 to increase the public’s energy awareness – supporting and advocating measures and activities aimed at the efficient use of energy and the utilization of renewable sources of energy. Social Enterprise: ECB provides energy advisory services to households and companies on how to reduce energy consumption. ECB also provides market research and marketing opportunities to companies in the energy efficiency field.

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Mission: Established in 1994 in Olomouc, P-Centrum is a multi-purpose facility that provides treatment and after-treatment to recovering drug addicts and their families.

Social Enterprise: With support from NESsT, P-Centrum has launched a wood-sculpting business focusing on construction of hand-carved benches and multifunctional sculptures for children’s playgrounds, parks, zoos, etc. The enterprise both employs at-risk youth and generates income for P-Centrum’s youth programs.

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Economy & Finance

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