The Global Exchange for Social Investment. Dr. Maritta Koch-Weser

Transcription

1 The Global Exchange for Social Investment Dr. Maritta Koch-Weser

2 WHO?

3 About GEXSI FROM AID TO MARKET THE GLOBAL EXCHANGE FOR SOCIAL INVESTMENT CEO Maritta Koch-Weser Senior Advisor Albrecht Graf von Hardenberg Head of Berlin Office Andreas Renner Head of UK Operations Christine Purdy The Global Exchange for Social Investment (GEXSI) operates worldwide from a European base with offices in London and Berlin. GEXSI began operations in January Since 2007, it is a registered UK charity (No ) and a not-for-profit company (No ). A for-profit entity GEXSI LLP (No. OC ) was founded in 2006 to provide market-based services. GEXSI has strong links and standing cooperative agreements with a range of international and national partner organisations, development agencies and networks of partners from various sectors. GEXSI was originally launched in 2001 as an initiative of the Klaus & Hilde Schwab Foundation for Social Entrepreneurship, in close cooperation with Deutsche Bank AG, Foursome Investments, Open Society Institute, Bain&Company as well as BMZ and gtz. In 2004 it became an independent institution.

4 From Aid to Market Social businesses need to move up MARKET Commercial Investments Degree of self-reliance AID Grant Funding GEXSI focus Civil Voluntary Organizations and Micro-Entrepreneurs often depend on grant funding 10-50k Hybrid social organizations require investments at below-market conditions Social businesses with solid business model and track record are valid for commercial investments 50k-500k 500k-2m TIME

5 Servicing Social Entrepreneurs

6 From Philanthropic Support to Commercial Investment focus: low-income regions around the world Social entrepreneurs who want to become self-sustaining look for start-up assistance from donors or investors. GEXSI facilitates access to technical expertise, markets, and finance GEXSI focus: business models that have social, environmental and economic impact, and clear potential for scaling up or replication. THE GLOBAL EXCHANGE FOR SOCIAL INVESTMENT LINKS CHARITABLE DONORS, SOCIAL ENTREPRENEURS AND SOCIAL INVESTORS IN FUNDING EXCEPTIONAL ECONOMIC, ECOLOGICAL AND SOCIAL PROJECTS FOR SUSTAINABLE DEVELOPMENT IN LOW-INCOME REGIONS AROUND THE WORLD

7 For Social Entrepreneurs GEXSI: Provides technical expertise in business planning and investment structuring Locates financing (debt or equity) that meets the needs of the enterprise in accordance with its business development stage arranging for below-market or fullfledged commercial investments Facilitates networking, mentorship and exchanges of information and expertise GEXSI PROVIDES EXPERTISE AND FINANCING TAILORED TO THE NEEDS OF EACH SOCIAL ENTREPRENEUR

8 The middle finance gap Access to finance Many evolving social enterprises experience a financing gap: their financial needs exceed microcredit capacities, but do not reach the levels of commercial financing. Many social businesses do not aim at financial returns which attract venture capital, nor do they have sufficient collateral to access local banks. GEXSI mobilises a blend of philanthropic funds and commercial financing, tailored to the specific needs of social enterprises. GEXSI MOBILISES THE CAPITAL AND EXPERTISE NEEDED BY SOCIAL ENTREPRENEURS TO MOVE FROM AID TO MARKET

9 Tandem Approach Einen effizienteren Markt schaffen + Konkrete Programme unterstützen

10 Tandem Approach Beispiel effizienterer Markt: Bottom-of-the Pyramid Fund Social Stock Exchange

11 1. Bottom of the Pyramid (BoP Fund) Rotating Fund supporting early-stage business development Capitalized by Grant Funds obtained through various forms of fundraising Financing Micro Equity Loans - Guarantees

12 Social Stock Exchange The Global Exchange for Social Investment

13 2 Bertelsmann Sozialbörse The Global Exchange for Social Investment Finanzierungen zwischen Philanthropie und Markt Die Sozialbörse vermittelt verschiedene Formen von Kapital, von verlorenen Zuschüssen zu Unternehmensbeteiligungen, nach dem Prinzip: so marktwirtschaftlich wie möglich, so philanthropisch wie nötig. Pilotstadium, Machbarkeitsphase Verlorener Zuschuss an gemeinnützige Organisation (als seed finance) Frühe Implementation: Aussicht, dass zumindest die ursprüngliche Investitionssumme im Laufe der Zeit zurückgezahlt werden kann Philanthropische Investition (Rückzahlung in einen Spenden-Fonds, mit dem weitere Start-ups finanziert werden) Erfolgreicher Spieler am Markt: wiederholbar, skalierbar, hohe Rendite Wachstumskapital bereitgestellt über den Kapitalmarkt - separates Listing für social purpose businesses an der Börse Erwachsen werden : Fähigkeit, die Investitionssumme zurückzuzahlen plus eine kleine Rendite Social Venture Capital mit keinen oder geringen positiven Ertragserwartungen ( blended value )

14 2 Bertelsmann Sozialbörse The Global Exchange for Social Investment Innovative Bieter-Prozesse für Sozialunternehmen Beispiel: Auktionierung von Kofinanzierung Financing needed: 100k for x% shares of the company Grant-only bids Growing Market Investor bids k 90k 80k 70k 10k 20k 30k 100k Investors: GRANT MARKET Finanzierung so marktorientiert wie möglich, so philanthropisch wie nötig

15 Tandem Approach Beispiel Konkrete Programme Rainforest Marketing Energy Poverty ERM Fund

16 Rain Forest Marketing The Global Exchange for Social Investment

17 Rainforest Marketing: 5x Value added Challenge: CO2 Emissions from Forests & Agriculture: 20-30% of global total one of the answers: Better Markets for rainforest products 1. Forest Communities cooperation 2. Local marketing & value adding Facility/ coop Refinement Conservation Packaging Energy Trading 3. pre-purchase of production Supply & demand mgt 4 Green Certification 5 Wholesale Retail Brands (oils, cosmetics, juices) Hotels, Restaurants supermarkets

18 Fighting Energy Poverty The Global Exchange for Social Investment

19 Fighting Energy Poverty GEXSI Bottom-of-the-Pyramid Fund- targets rural communities/off-grid Specific Products Jatropha Solar Biofuel Etc. Specific outcomes Lamps household/student level CO2-free Cooking Charging stations for Mobile Phones Fax TV & Radio School computer

20 ERM & GEXSI Low Carbon Fund

21 ERM & GEXSI Low Carbon Fund A FUND 1 ERM Foundation ERM Pro-Bono in-kind First group of projects 2 Other Investors Commercial Philantropic Voluntary Carbon footprint off-sets CDM + Carbon Care A SERVICE Carbon Offset Projects: Pipeline Development & Management coaching tracking -reporting

22 Services to Investors?

23 Philanthropic Organizations Philanthropic organisations can make a real difference by providing early-stage social entrepreneurs with soft start-up financing for business development. This may take the form of grants, or of debt or equity at below-market conditions. For philanthropic investors, GEXSI: Identifies promising enterprises GEXSI HELPS PHILANTHROPIC ORGANISATIONS INVEST IN CHANGE FOR GOOD Searches for investment opportunities in accordance with specific criteria set out by the commissioning philanthropic organisation Leverages social investment donations by recycling funds in the charitable GEXSI Bottom-of-the-Pyramid Fund Facilitates close monitoring and reporting Facilitates cooperation between funded projects and sponsoring philanthropic organisations

24 Social Investors For social investors private financiers, venture capitalists, SRI funds, foundations or investment advisors GEXSI: Identifies and screens investment opportunities in low-income regions worldwide Identifies regional, sectoral or social investment choices in response to investor preferences Facilitates cooperation in pro-poor business development and investments, and offers associated services Monitors and evaluates investments and compiles regular updates on the development of projects GEXSI INVESTMENTS HAVE IMPACT BEYOND FINANCIAL GAIN

25 Contact GEXSI London 1A Birkenhead Street London WC1H 8BA United Kingdom Tel. +44 (0) Fax +44 (0) GEXSI Berlin Palais am Festungsgraben Am Festungsgraben Berlin, Germany Tel. +49 (0) Fax +49 (0)