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DIALOGUES ON SOCIAL ENTERPRISE

ANDY'S FILE CABINET
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WARNING:   Use these materials at your own risk.  They contain Andy's personal writings and observations on the subject of emerging and alternative market (e.g., social enterprise) investing.   Most were produced during the period 2002-2007, when Andy served as Chairman of the Advisory Board of the Venture Finance Institute of Claremont Graduate University.

#1 - VENTURE CAPITAL FINANCING IN EMERGING MARKETS, Focus On Mexico

On September 26-27, 2002, the Venture Finance Institute (VFI) of the Claremont Graduate University (CGU) and the Peter F. Drucker Graduate School of Management conducted a conference on how U.S.-style venture financing can be used to stimulate financial independence and sustained economic growth in developing countries, with a focus on Mexico.   The following paper,  prepared by Andy and distributed to participants prior to attending the workshop, reviewed the state of knowledge regarding investing in risky assets and served as the academic justification for creating a venture capital fund in Mexico to invest in early stage ventures of innovative Mexican entrepreneurs.

#2 - FREEDOM FUND USA PROSPECTUS

On January 14-15, 2005, a second major VFI sponsored workshop took place at the Peter F. Drucker/Masatoshi  Ito Graduate School of Management on the subject of adapting the U.S. venture capital model of private equity investing to finance income-producing ventures of nonprofit organizations.  This paper, prepared by Andy with input from other VFI advisory board members,  postulated the creation of a venture fund to finance the rapid expansion of both for-profit and non-profit social enterprises.

#3 - VENTURE CAPITAL INVESTING IN NON-PROFIT SOCIAL ENTERPRISES

Separately Attached Excel File Fig.1-4

Is it possible to design an economic investment model that can stimulate significant flows of private equity financing into the nonprofit social enterprise sector by allowing return-oriented investors to procure financial claims that produce risk-return levels similar to those of for-profit venture capital funds?  Yes, argues Andy and co-author Dr. RIchard Smith.  Using revenue rights in a fund or investment instrument that is structured to have two investment traunches, it is possible to produce financial claims that have risk levels that are similar to those of for-profit venture capital funds.

#4 - SOCIAL ENTERPRISE ACADEMY POWERPOINT PRESENTATION

Social Enterprise Investment Criteria

Powerpoint Presentation Guidelines

Business Plan Executive Summary Outline

The Social Enterprise Academy brings scalable social enterprises to market through a competitive evaluation process and by facilitating innovative partnerships between non-profit organizations which are expert at doing good with for-profit businesses which specialize in creating sustainable enterprises.  This is the first powerpoint presentation prepared on the Academy, presented to a select group of Social Enterprise Institute members who wanted to rapidly grow their social enterprises.  It is accompanied by the Academy's published investment criteria, presentation guidelines, and business plan outline requirements. 

#5 - ADDING VALUE BY DOING GOOD

Andy didn't write this article, but wishes he had.  It argues that there is a causal link between doing good and doing well.  Successful private equity and venture capital manager, Schuyler ("Sky") Lance, Founder of Tanglewood Capital, LLC, explains how corporations around the world are discovering that doing good can be a powerful catalyst for doing well.  The idea that doing good can result in enhanced financial performance has the potential of transforming how millions of people may wish to invest in the future.


STANFORD SOCIAL INNOVATION REVIEW Articles
Please click on the article you wish to read (these articles are free):

THE FUNDING GAP

Three experienced social enterprise funders provide a comprehensive overview of the types of business structures, investors, and strategies that currently characterize the landscape of social enterprise investing - along with suggestions for how social entrepreneurs should move forward to solve the sector's "funding gap."

A NEW ERA FOR BUSINESS

More and more business leaders recognize that their company’s future is increasingly intertwined with the needs and demands of society.  In this article, McKinsey & Company consultants provide a model for incorporating sociopolitical issues into the strategic decision-making process.

THE POWER OF STRATEGIC MISSION INVESTING

To bring about real change, foundations need to make strategic mission investments that complement their grantmaking and leverage market forces.

COMPETING FOR A CHANGE

How Ashoka's Changemakers’ “collaborative competitions” harness the wisdom of crowds to solve social problems.

CREATING HIGH IMPACT NONPROFITS

This is a study of 12 high-impact nonprofits showing that real social change happens when organizations go outside their own walls and find creative ways to enlist the help of others.

HOW NONPROFITS GET REALLY BIG

Since 1970, more than 200,000 nonprofits have opened in the U.S., but only 144 have reached $50 million in annual revenue.   This article explains how they did it.

CULTIVATE YOUR ECOSYSTEM

Borrowing insights from the field of ecology, the authors offer an ecosystems framework to help social entrepreneurs create long-lasting and significant social change.