Ecosysteem voor Sociaal OndernemenBrussel – 24 juni, 2013

Important challenges in society should be tackled in an entrepreneurial wayaiming for shared value.

That is combining economic added value with social impact.

Vision: entrepreneurship for society

Ecological

Ethical

Community

Demographics

Poverty

Health and Well-Being

What is a social enterprise?

• Mission-driven: the primary goal is to generate social value (impact) by mitigating a social problem or market failure and/or meeting a social need or challenge

• Market-oriented: pursue goals in an entrepreneurial manner, generating own revenues to sustain themselves

Two key characteristics:

Non-profit with Income generating activities

Social Enterprise

Socially Responsible

Company

Company with CSR activities

Pure for-

profit

Pure non-profit

Social mission motive firstStakeholder accountability

Profit-making motive firstShareholder accountability

• Amnesty International

• Boops & Burps• Fit Class• Tintelijn• Rubies in the

Rubble

• Eneco• Colruyt

• Delhaize

Spectrum of organisations – Social and Profit motive combinations

3

Inspire and creating awareness

ideadevelopment

business plan

social impact

Insure the cost of coaching

Partners& seed

Investment

upscaling

Capacitycoaching

community

4

Social Enterprise

Their needs

Inspire and creating awareness

ideadevelopment

business plan

social impact

Insure the cost of coachingPartners& seed

Investment

upscaling

Capacitycoaching

community

SIASocial Innovation Accelerator

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Social Enterprise

The Ecosystem

• Kapitaliseert de groei vansociale ondernemingen (SE)

• Consultancyin sociale business innovatie

• Verlaagt drempel voor prof. coaching aan SE (verzekert de kost)

• Coaching & Research

Inspire and creating awareness

ideadevelopment

business plan

social impact

Insure the cost of coachingPartners& seed

Investment

upscaling

Capacitycoaching

community

We can be a structural partner

- Research +kenniscentrum- Cocreatie rond maatschappelijke thema’s: 2013-2014 armoede-platform- Haalbaarheidsstudies- Coaching jonge Sociale ondernemers

SIASocial Innovation Accelerator

- Opleiding en coachingmedewerkers-bank over doelgroep sociale ondernemers- Consultancy

- Verkleinen risico haalbaarheidsstudies- Netwerk van ondernemingen die sociale innovatie willen stimuleren

- Versterken eigen vermogen sociale ondernemer

Inspire and creating awareness

ideadevelopment

business plan

social impact

Insure the cost of coachingPartners& seed

Investment

upscaling

Capacitycoaching

community

We need structural partners

• Kapitaliseert de groei vansociale ondernemingen (SE)

• Committed Capital: 11,5 M EUR• Target fund size : 15M EUR (2014)• Target ROI: 4 à 7%

• Verlaagt drempel voor prof. coaching aan SE (verzekert de kost)• Committed Capital: 400K EUR• Target size: 1M EUR (2014)• Opbrengst: 0%

• Coaching & Research• Hefboom: Research: factor 5(4 EUR public funding per 1 EUR privé) Coaching: factor X(betere coaching en hogere instroom voor SIA en SI³ Fund)• BU-plan Opstartkost: investering van € 300.000 gedurende 3 jaar Vanaf 2016 moet kost kunnen gedragen worden door ECO-systeem

SIASocial Innovation Accelerator

Bancaire partner

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Deelname in het ecosysteem: mogelijkheden Financieel

Commitment van 3 en 5 jaar Kapitaalsinvestering: 1,2M EUR Gift: 300K EUR

Kapitaalsinvestering: 300K EUR Gift: 150K EUR

Organisatie € Timing Investerings-horizon Rendement

SI² Fund 1M EUR 2013 5 jaar 4 à 7%

Social Innovation Accelerator 200K EUR 2013 5 jaar 0%

Innovation & Action Lab 3 x 100K EUR 2013 - 2015 NA NA

Organisatie € Timing Investerings-horizon Rendement

SI² Fund 250K EUR 2013 5 jaar 4 à 7%

Social Innovation Accelerator 50K EUR 2013 5 jaar 0%

Innovation & Action Lab 3 x 50K EUR 2013 - 2015 NA NA

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i-propeller vision & mission

• Team of 17 persons and 5 different nationalities

• Specialised in service innovation, business model and strategy development

• Strong experience in open innovation methodologies

• Backgrounds in strategy, finance, marketing and change management

• Active for corporations & government

Directors:

Founders

Toon Diegenant, Johan Moyersoen, Fried Roggen, Marieke Huysentruyt

Investors• Koenraad Debackere, Algemeen Beheerder

KULeuven (KULeuven)

• Jan Lamers, Board Member Triodos Bank, voormalig CEO De Tijd (Triodos Invest)

• Barbara Roose, Senior Investment Manager GIMB / SRIB (BruStart)

• Piet Colruyt

Team :

i-propeller in a nutshell

+60 clients in last 5 years

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Reveal which social trends are most likely to impact your business.Assess your innovation potential. Define which new servicesshould be designed to turn those trends into a business opportunity.

Design a new service that is profitable for you and society.

Strengthen your strategy with social business innovation.

Design and build a network to stimulate social business innovationin your organization or ecosystem.

Strengthen your internal capabilities to develop and implement social business innovations.

Reveal and communicate the impact of your organization on society.

Opportunity Scan

Service design

Strategy

Network design

Capacity building

Impact reporting

i-propeller core focus = consultancy

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• SI² Fund is a social impact investment fund. The fund invests in social enterprises that apply entrepreneurial concepts to achieve social goals.

• SI² Fund aims for both a financial and social return from its investments.

• Social enterprises face a funding gap on account of limited appetite from traditional venture capital providers. SI² Fund adresses this gap.

• SI² Fund is uniquely positioned thanks to its partnership with i-propeller, a leading expert in social entrepreneurship. The Fund’s close tie-in with the incubation and coaching ecosystem of i-propeller provides strong support for deal flow .

• SI² Fund is an open-ended investment fund (exit possibilities after 5 years). The fund has closed an inaugural deal, is developing a promising pipeline and is open to new investors looking for measurable social impact combined with fair financial returns.

Investment fund for social enterprises

Investment Criteria

• Creating social impact by tackling challenges in one or more of six trends: demography, community, poverty, environment, health and well being, ethical goods and services

• Social impact generation as an integrated and measurable part of the business model

• Clear plan to attain financial viability and generate a fair return for investors based on a solid business plan and model

• Strong and committed management team

• Good deal structure with exit potential

SI2 Fund will consider early and development stage ventures with the following characteristics:

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SI² Fund teamBoard of Directors

Fund Management

• Piet Colruyt, Impact Capital (cornerstone investor)• Johan Moyersoen, i-propeller• Stefan Yee, AS Partners, PE group• Elinor de Pret• Marij Colruyt• Steven Serneels• Michaël Bremans, ex-president Ecover Group: Independent director

Maximum 9 members: up to 6 investor representatives + one i-propeller + two independent directors

• Corporate governance• Strategy definition • Final decisions on

investments over 500K

Investment Committee • Fried Roggen

• Piet Colruyt• Stefan Yee • Independent: Michaël Bremans

• Investment review• Final decisions on

investments up to 500K

External Auditor • VMB represented by Alain Bolssens

• Fried Roggen (i-propeller), Fund Manager• Bart Van Aelst, Investment Adviser• Jennifer Marzullo (i-propeller), market strategy• Stefan Yee, supporting Fund Management• Laurent Ledoux, supporting Fund Strategy

Target: 3 FTEs dedicated + i-propeller support

Fund Manager + investor representatives + independent director(s)

• Daily operations• Prepare, execute and

implement investment strategy

• Review of accounts• Determine intrinsic value

(semi-annual)

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Target Fund Size EUR 15,0m (11,5m committed to date)

Investment size

Up to EUR 500K, or maximum 10% of the fund Co-investments with others possible

Significant minority stakes (majority if req’d)

Geographic focus Focus on Belgium & neighboring countries

Investment stage Focus on early stage (non-seed) and development stage

Investment horizon 5-7 years

Investment instruments Equity & equity-linked

Investment approach Pro-active role, with Board representation

Term Open ended, but aimed at exit possibilities after 5 years

Investor exit Dividend, capital decrease, recap, intra-shareholder sale

Conclusion

• Investment opportunity: bridge a funding gap by addressing an unmet need

• Do more with money: measurable social impact combined with fair financial returns

• Be intelligently pioneering: first fund of its kind for its region, but backed with a strong ecosystem of partners to ensure success

• Be part of a new sustainability trend that will shape and benefit future generations

Why Invest?

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Coaching & research

A not for profit organisation (v.z.w. / a.s.b.l.)

Focus Coaching services for social enterprises Research about social enterprises and how to create social impact in an

entrepreneurial way

Leadership Loïc Van Cutsem, general manager

An i-propeller spin-off- The founders of Innovation & Action Lab asbl are the partners of i-propeller- i-propeller is strongly inspired by social enterprises and their talent to find solutions with a strong social impact and a

sound business model- Since the start of i-propeller, the company allocated 15% of its time to free incubation & coaching services for social

enterprises- The company initiated various research projects on social entrepreneurship and innovation what has allowed to

strengthen its knowledge and methodologies- The goal of spinning off the incubation services and research activities into a separate structure, is to allocate more

dedicate focus and an ambitious growth model for the incubation & coaching and research activities.

Coaching: increasing the speed to market

Social Innovation ScanSocial Innovation Business AssessmentSocial Innovation Coaching

Level of Support

Low

Medium

High

The Innovation & Action Lab offers services to meet the needs of the social entrepreneurs taking into account prior work completed, business acumen of entrepreneur and desired professional advice

More than 100 social entrepreneurs have been coached by i-propeller prior to

launching the lab as a separate structure.

Research: action oriented

The Lab is a nexus of academic, private sector, public sector and civil society collaboration.

Gathering intelligence on: social entrepreneurs (access to data on over 2000 SEs) how to create social impact in an entrepreneurial way

Initiating fresh academic research projects since 2008 with leading business schools and network organisations of social entrepreneurs and social innovation in general.

SIASocial Innovation Accelerator

Verlaagt de drempel tot professionele coaching CVBA opgericht: februari 2013 Kapitalisatie:

22K EUR Eigen Vermogen bij oprichting 400K EUR trekkingsrecht op renteloze lening Doelstelling EV: 1M in 2014

Leden van de CVBA Oprichters: personen

vanuit de bedrijven die het initiatief namen voor de Sociale Innovatiefabriek Toekomstige leden: organisaties en personen

die de club willen vervoegen en haar doelstellingen onderschrijven

Doel Verzekeringsfonds: de kost van coaching traject voor sociale ondernemers wordt verzekerd Inspireren: bedrijven en personen inspireren over sociale business innovatie

Van waar komen de voorstellen tot verzekeren van coaching trajecten Vanuit het Innovation & Action Lab Overige actoren die binnen de criteria van SIA willen werken Vanuit de sociale innovatiefabriek

SIASocial Innovation Accelerator

Oprichters (personen)

Jan van den Nieuwenhuijzen (CEO & lid van de RvB)

Piet Colruyt (Voorzitter RvB)

Renate Degrave (lid van de RvB)

Geert Palmers

Laurent Ledoux

Christophe Degrez

Hanne Van Waeyenberge

Pieter Vandekerckhove

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Een organisatie van bedrijven voor bedrijvenopgericht door managers

Initiële leden (bedrijven)

Tessenderlo Group Eneco België 3E

Telenet Fifth Play (Niko Group) Joker

Triodos Bank Urban Product PE Group

Impact Capital City Live Blixt

Zappware Shortcut – change designers

SIASocial Innovation Accelerator

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The Ecosystem leverages

Other organisations, projects and cooperations have been set upthanks to the leadership and example set

by the organisations in the ecosystem

BENISI

Inspire and creating awareness

ideadevelopment

business plan

social impact

Insure the cost of coachingPartners& seed

Investment

upscaling

Capacitycoaching

community

27

Social Enterprise

2013 - 2016:12M EUR

2013 - 2016:1M EUR

ECi-propeller EU consortium BENISI

Social Innovation ParkShanghai

SIASocial Innovation Accelerator

Stimuleert sociaal ondernemerschap & sociale innovatie

• Een v.z.w.• ‘Lichte Structuur’ met geoormerkte IWT middelen: meer dan 12M EUR voor acties

in de periode 2013 – 2016

• Doel– Sociaal ondernemerschap en sociale innovatie ondersteunen

om het hoofd te bieden aan belangrijke maatschappelijke uitdagingen in Vlaanderen.

– De fabriek dient te zorgen voor een doorbraak van sociale innovatie,complementair aan technologische innovatie, in Vlaanderen.

• Doelgroep - Sociale ondernemers, middenveld en bedrijven- … die op zoek gaan naar nieuwe aanpakken om sociale impact te realiseren…- hierbij ondersteund door kennisinstellingen en overheidspartners.

Initiatiefnemers: bedrijven en civil society

Bedrijven: Tessenderlo Group Eneco België 3E Fifth Play Joker Blixt Urban Product City-Live Triodos Bank Telenet Impact Capital PE Group i-propeller Zappware Shortcut – change designers

Organisaties: • ACW• FOV • BBLV• Minderhedenforum (Forum voor Etnisch-culturele

Minderheden) • Gezinsbond • VSGF (Soc. mutualiteiten en socio-culturele

verenigingen) • Netwerk Armoede (Netwerk van Verenigingen

waar armen het woord nemen)

Raad van Bestuur

1. Jan van den Nieuwenhuijzen (Social Innovation Accelerator)

4. Frederic Vanhauwaert (Netwerk Armoede)

7. Overheid 1

2. Vincent De Dobbeleer (Eneco)

5. Danny Jacobs (Bond Beter Leefmilieu)

8. Overheid 2

3. Hanne Van Waeyenberge (In der minne)

6. Ann Demeulemeester (Verenigde Verenigingen)

9. Overheid 3

REACH: jaarlijks minstens 5.000 actoren bereiken

ENGAGE: jaarlijks minstens 2.100 actoren laten participeren aan de

activiteiten

ACTION: jaarlijks 256 actoren aanzetten tot actie (individuele of collectieve)

om tot een effectieve sociale innovatieve realisatie te komen

NURTURE: jaarlijks 36 actoren begeleiden tot het realiseren van een

haalbaarheidsstudie en 18 actoren om een effectief steunbaar innovatietraject op te zetten.

Van bewustmaking

tot concrete realisatie

Resultaatgerichte aanpak

China’s largest physical platformfor Social Entrepreneurship and Social Innovation

China – Europe exchange of knowledge

• The Social Innovation Park in Shanghai (“The Nest”) aims to support, promote and incubate social enterprises and social innovation

• 23,000m² situated in Shanghai’s Huangpu District• Operated by NPI, a local not-for-profit organization serving the development of the

social sector in China. • i-propeller has been supporting and learning from NPI since 2012• On-site workshops, lectures, joint projects and monthly on-line meetings, focus on:

– the ecosystem for social entrepreneurship (incl. creation of a Lab and an investment fund)– designing the services and business model to support social entrepreneurship

Upscalling of 300 social innovations in Europe

BENISI

BENISI

• BENISI: Building European Network for Incubation of Social Innovation • FP7 – Coordination and Support Action (CSA) • Budget : 1M Euro• Duration: 36 months (March 2013 – March 2016)• Lead partner: i-propeller• Pan-European consortium

Approach:1. Reach across different types of social innovations2. Flexible framework allowing different types of scaling3. Development of a dedicated infrastructure for knowledge sharing4. Open network structure for diverse stakeholders to participate (SIAN)

BENISIAccess to Europe’s leading social enterprises & social innovations