EVPA Research Project
on Impact Strategies Kick-off, 13th March 2018
09:00 – 09.30
WELCOME!
RESEARCH PROJECT | EVPA TEAM
ALESSIA GIANONCELLI
Research Manager
EVPA
PRISCILLA BOIARDI
Knowledge Centre and Policy Director
EVPA
GIANLUCA GAGGIOTTI
Research Intern
EVPA
AGENDA FOR TODAY
09:00-09:30 Welcome, registrations and coffee
09:30-10:00 Introduction to EVPA Research
10:00-10:30 Introduction of the Expert Group
10:30-12:00 Presentation and discussion of EVPA Initial Framework
12:00-13:00 Lunch
13:00-13:30 Presentation of the working groups
13:30-15:00 Break-out discussion in working groups
15:00-15:30 Coffee break
15:30-16:30 Plenary discussion: working groups report back to the plenary
16:30-16:45 Conclusions and next steps
16:45-17:00 Evaluation forms | end of meeting
09:30 – 10.00
INTRODUCTION TO EVPA RESEARCH
DEFINITIONS (1/2)
Venture Philanthropy is a high
engagement and long term
approach to generating societal
impact through
three core practices:
• Tailored financing
• Organisational Support
• Impact measurement and management
DEFINITIONS (2/2)
Venture Philanthropy Organisation/Social Investor – VPO/SI or
VP/SI organisation
An organisation that supports social purpose organisations through grant, debt, equity or hybrid
financial instruments, by providing a range of organisational support and measuring and managing
impact. VPO/SIs include, for example, investment funds, foundations, financial institutions, social
finance intermediaries.
Social Purpose Organisation – SPO
An organisation that operates with the primary aim of achieving measurable social and
environmental impact. Social purpose organisations include charities, non-profit organisations and
social enterprises.
EVPA RESEARCH | OUR LIBRARY AND WHAT’S NEXT
VP/SI industry Key players Best practices
Recently
published
2018
Online data visualisation tool
2016
“The State of VP/SI in
Europe| The EVPA Survey
2015/2016”
More formats to disseminate the 5th IS:
2015
“Corporate
social impact
strategies –
New paths
for
collaborative
growth”
2014
“Social
Impact
Strategies
for Banks”
2017
“Financing for Social
Impact | The Key Role
of Tailored Financing
and Hybrid Finance”
Videos to disseminate the research:
Success Stories
(new website & leaflets)
“VP/SI in Central
Eastern Europe –
Case Studies”
“Impact Management
Principles”
2016
“VP in a Nutshell –
Case Studies and
Good Practices”
Upcoming
initiatives
2018
New 6th EVPA Industry Survey
Update of the dynamic tool (more stats, new
data from IS2018)
2018
One report on PPC
2researches on Corporates
1research on Foundations
2018
New research on Impact Strategies
VP in a Nutshell II (incl. leaflet on TF)
Success Stories Campaign II
New edition of
“Venture Philanthropy
and Social
Impact
Investment –
A practical guide”
EVPA RESEARCH | BEST PRACTICES (1/2)
“A Practical Guide to Measuring and
Managing Impact” (II edition, 2015)
“Impact Measurement in Practice – In-depth
Case Studies” (2016)
“Impact Management Principles” (2017)
Work with GECES and GSG
“A Practical Guide to Adding Value through
non-financial support” (2015)
Collection of practical tools VPO/SIs can use
(available on our website)
“Financing for Social Impact | The Key Role
of Tailored Financing and Hybrid Finance”
(2017)
EVPA RESEARCH | BEST PRACTICES (2/2)
10:00 – 10:30
INTRODUCTION OF THE EXPERT GROUP
EXPERT GROUP | COMPOSITION
• Invited 35 experts (practitioners, academics, consultants) to
participate, 27 confirmed to date.
• Each expert will be assigned to a smaller working group (WG),
aiming for a balanced mix.
• Assignment given to each working group based on three
thematic areas.
EXPERT GROUP | PRESENTATION
• Who are you and where do you work?
• Why are you interested in this research project?
• What is your link to the topic?
10:30 – 12:00
EVPA INITIAL FRAMEWORK
1. Gather Knowledge
Jan –March 2018
2. Engage an Expert Group
Feb –March 2018
3. Kick-off meeting in Brussels
13 March 2018
4. Webinar Series
April 2018
5. 1st Draft Manual
Summer 2018
6. 2nd experts gathering
September 2018
7. Final Draft Manual
September 2018
8. Launch
29-30 Nov at EVPA AC Warsaw
+ Comms & disseminat.
December 2018 + 2019
TIMELINE
EVPA RESEARCH ON IMPACT STRATEGIES | THE PLAN (1/2)
EVPA RESEARCH ON IMPACT STRATEGIES | THE PLAN (2/2)
OBJECTIVES
• Provide EVPA members and the VP/SI sector in general with an in-depth understanding of
VP/SI impact strategies. How do we classify the VP/SI space?
• Develop an in-depth understanding of the role of different VP/SI practitioners with diverse
impact strategies in the VP/SI ecosystem.
• Develop a mapping of EVPA members and VP/SI organisations in general on their impact
strategies, overcoming the distinctions based on legal structure and financial return targets. How
are you engaged as an investor? How serious are you about impact?
• Develop a hands-on manual to help VP/SI organisations develop individual impact strategies
based on sound impact/financial risk/return considerations.
IMPACT STRATEGY
An impact strategy represents the way in which a VP/SI organisation codifies its
own VP/SI activity, both in terms of its position towards impact and vis-à-vis its
financial return objectives.
A PRELIMINARY DEFINITION
PRELIMINARY THEORETICAL FRAMEWORK
0. Starting point: spectra in the VP/SI space
1. VPO/SI’s strategy and goals
2. SPOs / investments
3. Matching matrix
0. Starting point: spectra in the VP/SI space
EVPA SPECTRUM | CLASSIFY THE VP/SI SPACE
BRIDGES VENTURE SPECTRUM (2015)
UK NAB SPECTRUM (2017)
~ Towards a categorisation of impact strategies ~
The valuation process
Choosing the VP/SI organisation’s impact strategy
EVPA VALUATION PROCESS
EVPA BROAD STRATEGIES
VPO/SI only accepts social return, generating financial return is not possible
VPO/SI prioritizes social return, but can also accept financial return
VPO/SI considers social and financial return on equal footing
VPO/SI prioritizes financial return, but also seeks social return
1. VPO/SI’s strategy and goals
Area Summary Questions to be answered
#1
VPO/SI STRATEGY
AND GOALS
Investment strategy/financial and impact
goals/motivations of the VPO/SI to cluster
VP/SI practitioners in the sector. Develop
impact strategies/define the role of capital to
go beyond the dichotomy impact/financial
returns.
How to go beyond the dichotomy impact/financial returns?
What other factors need to be considered? How to include
considerations around investors’ motivations?
How does a complete mapping of the investment strategies
of VPO/SIs look like? Can we incorporate both impact and
financial risk/return considerations into such mapping?
Are there other ways to look at VP/SI practitioners?
What are the constraints that can limit the VPO/SI in its
choice of the best impact strategy?
THEMATIC AREA #1 | QUESTIONS TO BE ANSWERED
EXISTING WORK (1/4)
Source: Tideline (2016),Navigating Impact Investing. The opportunity in impact classes
A social investor may prefer to invest primarly in pioneering efforts that develop new and untested
business models, or alternatively in scaling proven, impactful solutions in more mature markets.
EXISTING WORK (2/4)
Source: Karl H. Ricther (2017) for the OECD
EXISTING WORK (3/4)
Source: NPC and KL Felicitas Foundation (2015), “Investing For Impact: Practical Tools, Lessons, and
Results”, Plum Lomax, Abigail Rotheroe, Peter Harrison-Evans
FACTORING IN THE INVESTOR’S CONTRIBUTION
o Signal that impact matters (values alignment)
o Engage actively
o Grow new or undersupplied capital markets
o Provide flexible capital
EXISTING WORK (4/4)
Source: The Impact Management Project (2017)
2. SPOs / investments
Area Summary Questions to be answered
#2
SPOs / TYPE OF
INVESTMENTS
Identify different clustering options of
SPOs/investment, including business models,
types of beneficiaries, market characteristics,
asset classes, etc.
Can we develop a mapping of investment options?
What are the characteristics of the SPOs to take into account
to map the different investment options? E.g.:
impact goals
beneficiaries targeted
market in which SPOs operate
type of capital needed
type of non-financial support needed
stage of development
business model
legal structure
etc.
THEMATIC AREA #2 | QUESTIONS TO BE ANSWERED
DEFINE THE SPO’s BUSINESS MODEL
Ask the following
question:
“Does a market
(public or private)
exist for the SPO’s
products/services
or activities?”
Source: Gianoncelli, A. and Boiardi, P. (2017), “Financing for Social Impact”. EVPA.
EXISTING WORK (1/4)
Source: Tideline (2016)
Source: The Impact Management Project (2017)
EXISTING WORK (2/4)
EXISTING WORK (3/4)
Source: Tideline (2016)
Source: Karl H. Ricther (2017) for the OECD
EXISTING WORK (4/4)
3. Matching matrix
Area Summary Questions to be answered
#3
MATCHING MATRIX
Combine the VPO/SI’s strategy with
clustering of investments; incorporate the
three core practices of the VP approach (i.e.
tailored financing, impact measurement and
management; non-financial support) into the
matrix .
How can we best combine the VPOs’ strategies with the
SPOs’ clustering?
Can we develop a matrix in which we help investors choose
how to provide tailored financing, non-financial support
and impact measurement & management to their
investees?
THEMATIC AREA #3 | QUESTIONS TO BE ANSWERED
MATCHING THE VPO/SI’s MOTIVATIONS WITH THE SPO’s NEEDS
Source: Gianoncelli, A. and Boiardi, P. (2017), “Financing for Social Impact”. EVPA.
Source: Tideline (2016)
EXISTING WORK (1/6)
Source: Karl H. Richter for the OECD(2017)
EXISTING WORK (2/6)
Source: The Impact Management Project (2017)
EXISTING WORK (3/6)
Source: GIIN (2017)
EXISTING WORK (4/6)
Each theme includes different strategies based on common ways that investors
contribute to social or environmental impacts. The strategies are designed to be
combinable – select one or draw from multiple.
EXISTING WORK (5/6)
Source: https://navigatingimpact.thegiin.org
EXISTING WORK (6/6)
A NEW MATRIX | NEXT STEPS
Tailored Financing Non-financial support
Impact Measurement and Management
COMMON ASPECTS AND LIMITS
COMMON ASPECTS AND LIMITS
• Putting the focus on social impact.
• Helping VP/SI practitioners better allocate their resources according to their
motivations and goals.
• Going beyond the dichotomy and the trade-off between social impact and
financial returns.
• Helping social investors and investment managers to align on potential investors.
• Helping VPO/SIs to match their goals with the goals of SPOs.
• Helping VP/SI practitioners in co-investing.
/!\ However, clustering might hinder innovation in the VP/SI sector
Q&A: PRELIMINARY EXPERTS FEEDBACK
16:30 – 16:45
CONCLUSIONS AND NEXT STEPS
CONCLUSIONS | CLOSING REMARKS
• Closing remarks
• Any additional questions?
1. Gather Knowledge
Jan –March 2018
2. Engage an Expert Group
Feb –March 2018
3. Kick-off meeting in Brussels
13 March 2018
4. Webinar Series
April 2018
5. 1st Draft Manual
Summer 2018
6. 2nd experts gathering
September 2018
7. Final Draft Manual
September 2018
8. Launch
29-30 Nov at EVPA AC Warsaw
+ Comms & disseminat.
December 2018 + 2019
TIMELINE
RESEARCH ON IMPACT STRATEGIES | NEXT STEPS (1/2)
• Organisation of three webinars on:
Wednesday, 18th April 2018 at 15:00-17:00 CEST
Monday, 23rd April 2018 at 15:00-17:00 CEST
Wednesday, 25th April 2018 at 15:00-17:00 CEST
All experts should attend and discuss at every webinar!
RESEARCH ON IMPACT STRATEGIES | NEXT STEPS (2/2)
16:45 – 17.00
EVALUATION FORMS
EVPA KNOWLEDGE CENTRE IS
KINDLY SUPPORTED BY:
THANKS TO OUR SPONSPORS
RUE ROYALE 94 1000 BRUSSELS T +32 2 513 21 31 EVPA.EU.COM [email protected] european-venture-philanthropy-association @_EVPA_