impact investing in israel g8 taskforce plenary july 9 th, 2015 yaron neudorfer ceo, social finance...
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Impact Investing in IsraelG8 Taskforce Plenary
July 9th, 2015
Yaron NeudorferCEO, Social Finance Israel yaron@socialfinance.org.il July 2015
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ISRAEL
Jews 75%
Arabs 21%
Others 4% During 2014
8.3 million people 176,000 children born 23,000 immigrants arrived
Projection to 2020 9 Million people ~50% of the population will be either
Israeli Arabs or Ultra-Orthodox Jews
GDP $40k per capita (raised from $19 K 10 years ago)
Unemployment Rate 5.4%(down from 6.2% in 2013)
An innovation driven economy 140 scientists, technicians, and engineers
per 10,000 employees – the highest rate per capita in the world.
Israeli tech startup exit amounts increased by 980% over the past five years to a record $9.2 billion in 2014.
GINI Index 0.42(Level of post-tax-and-transfer inequality)
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Key initiatives in Israel began to emerge in recent years, but only now starting to take form and gain traction – conditions align with recommendations from the G8 taskforce, but guidance and a steering body is needed .
First impact fund, with matching investment from
government, focused on the Israeli Arab sector
Establishment of a social-financial intermediary
A surge in accelerators with social goals
2 Impact funds, with matching investment from
government, focused on social enterprises tackling
unemployment
2011 2013 2014 2015
Expected 2015/2016 Launch of 4 social impact
bonds
Creation of an Israeli wholesaler of impact capital (Big Society Capital model) – funded with unclaimed assets ($65M)
Establishment of a Venture impact fund in Israel
Social Impact Investing in Israel
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An Israeli government initiative to establish and operate Social “Entrepreneurship” funds, to invest in social businesses creating employment for populations facing high unemployment.
Goals Implementation Impact investment: opening the path for cross sector
collaboration, philanthropy & investors Developing the social business sector Exploring new solutions for employment of
disadvantaged population
2015: Two funds - $7 m each Investment period: 4 Years Partners: Government, Philanthropy, Investors (about
1/3 each) Comprehensive impact assessment analysis
Yozma Funds
Philanthropy Investors
Gov. incentives to corporate
First lossTax Credit
Social Business
CapitalCapital
Yozma Social Funds
$14 M. for social businesses tackling unemployment
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A surge of entrepreneurial programmes managed by non-profits, offering potential investments in tech-for-good start-ups and social enterprises.
8200- tech for impact
Tech for Good
High-techIn the Arab sector
Business to tackle disabilities
Social business
Social enterprises in the Israeli Arab
sector
Bedouin entrepreneurship
Innovation in peripheral areas
Social entrepreneurship in Jerusalem
Grass Roots – Forming Accelerators With Social Goals
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Reducing Dropout
Rates (Higher
education)
Tackling Type 2
Diabetes
Improving K-12 Maths
Ultra-Orthodox Male
Employment
Arab Financial Empowerment
Child Care
Reducing Recidivism
SFI has developed innovative models to tackle pressing social issues, and will launch two SiBs in the next few months.
Final StageAgreements and Financing
Development StageIn-depth Research & Coalition Building
Early StageInitial Feasibility
Launch
Social Finance Israel
~$10 M. in SIB’s this year
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The two SiBs approaching launch have been presented to the G8 Taskforce, bringing innovation through unique models developed for the Israeli market – both models built for scaling up immediately, to include additional outcome payers
Reducing the incidence of Type 2 Diabetes in high-risk pre-diabetics
Reducing Dropout Rates from Higher Education (Computer Science & engineering)
Outcome Payer
H.M.Os and the National Insurance Institute
Universities and colleges
Scale Intervention in up to 2,250 high-risk pre-diabeticsCost: $5.4m
Working with two institutions, 550 students with high-risk of dropping out Cost: $2.1m
Innovation • Financing of prevention of healthcare problems , blending of economic and health outcomes
• Multiple outcome payers pooling resources across different phases of the disease to address a common challenge
• An integrated, personalized intervention, supplemented with latest technology
• Non-governmental outcome payers • Economic model based on cashable
increases in revenues. • Creating employment opportunities for
intervention graduates
Launch November 2015 October 2015
Social Finance Israel
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THANK YOU
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