Impact Investing Conference, August 2014...ANDE 3 The Aspen Network of Development Entrepreneurs (ANDE) is a global network of organizations that propel entrepreneurship in emerging

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Impact Investing Conference, August 2014

- About ANDE

- Trends in the SGB Global Sector

- The Brazil Impact Investing Sector

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ANDE

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The Aspen Network of Development Entrepreneurs (ANDE) is a global network of

organizations that propel entrepreneurship in emerging markets. ANDE members

provide critical financial, educational, and business support services to small and

growing businesses (SGBs) based on the conviction that SGBs will create jobs,

stimulate long-term economic growth, and produce environmental and social benefits.

Ultimately, we believe that SGBs can help lift countries out of poverty. ANDE is part of

the Aspen Institute, an educational and policy studies organization.

ANDE Membership: An SGB Ecosystem

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Capacity

Development

Providers

33%

Investors

29%

Corporations and

Corporate

Foundations

10%

Research and

Advisory Service

Providers

9%

Foundations

9%

Academic

Institutions

6%

DFIs and Donor

Agencies

4%

ANDE Members - Global Reach

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65%

36% 51%

13% 72%

12%

32%

17%

36%

1%

59%

6%

Headquartered

in the region

Engaged

in the region

11%

Source: ANDE Member Database, as of 4/3/2014

Regional Chapter

ANDE members in Brazil

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• ICE (Entrepreneurial

Citizenship Institute)

• International Finance

Corporation (IFC)

• Impact HUB

• Instituto Inspirare

• JP Morgan

• LGT Venture Philanthropy

• Monitor Deloitte

• Nestlé

• NESsT

• Pipa

• Quintessa Partners

• Sitawi

• Solidaridad Network

• TechnoServe Inc.

• Village Capital

• Vox Capital

• Walmart

• Aliança Empreendedora

• Amani Institute

• ARTEMISIA

• Bamboo Finance

• BID Network

• Business Call to Action

(BCtA)

• CARE

• Christian Aid

• Citi Foundation

• eBay Foundation

• edge

• Endeavor

• EY

• Fundación AVINA

• Halloran Philanthropies

• LAVCA

• IADB - Multilateral

Investment Fund

ANDE – Activities

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1) Produce and share knowledge

• Map the ecosystem - Brazil impact Investing study

• Sector reports (Housing, Technology and Invention)

• Cases (Walmart Institute and Solidarium)

2) Promote connections

• Sector events

- Technology

- Invention

- Recycling/ Waste Management

- Education, Health

• Chapter meetings:

- Venture Capital, Metrics, Pipeline, Government

- About ANDE



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ANDE study

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Decade of Growth for SGB Intermediaries

10

97

144

0

20

40

60

80

100

120

140

160

2004 - 2008 2009 - 2013

Number of Investment

Vehicles Launched

10 12

0

5

10

15

2004 - 2009 2009 - 2013

Number of ANDE

Member CD orgs

Founded

85% of Investment

Vehicles founded in

past decade

50% of Capacity

Development

Providers founded

in past decade*

*ANDE members only Source: ANDE Research

Fewer Funds, Larger Target Sizes

11

13 13 18

23 30 32 29

48

34

22

$-

$10

$20

$30

$40

$50

$60

$70

$80

0

10

20

30

40

50

60

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

US

D M

illi

on

s

Nu

mb

er

of

Veh

icle

s

Vehicles Launched

(n=262)

Median Target AUM (millions USD)

(n=167)

Regional Focus: More Global Funds

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5% 6% 4% 6%

15%

24%

16%

16% 8%

8% 16%

13%

34% 27%

0%

20%

40%

60%

80%

100%

2004 - 2008

(n=97)

2008 - 2013

(n=144)

Sub-Saharan Africa

South Asia

MENA

Latin America & Caribbean

Global & Multi-Region

Europe & Central Asia

East Asia & Pacific

Source: ANDE Research

Continue to See Low Focus on Seed Stage

13

0

20

40

60

80

100

120

140

160

Seed Start-up Early Growth Mature

Nu

mb

er

of

Invest

men

t V

eh

icle

s

Target Stage

Median

deal size

$500,000

Median

deal size

$150,000

Median

deal size

$1,000,000


N = 223; 100 Investment Vehicles selected more than one stage

But Newer Vehicles Shifting That Trend

14 Source: ANDE Research

N = 149; Only investment vehicles that reported both inception year and stage

1 4 9 4

14

16 24

41

25

30

44 26

5 4 3

0%

20%

40%

60%

80%

100%

2005 - 2007

(n=41)

2008 - 2010

(n=66)

2011- 2013

(n=52)

Perc

en

tag

e o

f V

eh

icle

s

Inception Year

Mature

Expansion/Growth

Early

Start-up

Seed

Easier to Raise Funds than to Deploy

15


N=19, closed-end funds that reported inception year, committed

capital, and total capital deployed to date

48%

51%

39%

13%

2009

(n=4)

2010

(n=2)

2011

(n=10)

2012

(n=3)

Incep

tio

n Y

ear

Proportion of Committed Capital that Has Been Deployed

Brazil

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• Base of the pyramid is a focus

• Need to expand to other geographies

• Identify financial resources for business with social impact

• Better understand governmental contracts

• Develop talents for the sector

- About ANDE



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Brazil Impact Investing Study

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Study criteria:


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22 investors participated in the study

• 20 already making investments

• 2 planning to start in 2014

• 12 international

• 10 national


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Market Size and Investments

• Local market manages approximately $177 million in committed capital as

reported by 8 out of 9 local impact investors

• International investors active in Brazil manage approximately $3 billion in

committed capital

• Since the first investment in 2001, $76.1 million have been allocated to impact

businesses in Brazil

• 68 impact business received investments

• $90 million to $127 million are planned for investment in 2014 by national and

international investors


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Key Sectors and regions

Sectors:

• Financial Inclusion (89%)

• Education (84%)

• Health (63%)

• Renewable energy, housing, waste management, water and sanitation

Regions:

• São Paulo main region

• Increasingly interest in Northeast


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Trends

• Market will continue to grow: 5 local organizations expect to fundraise up to

$150 million in 2014, both in Brazil and abroad

• Risk aversion among investors: 83% of investments in early stage companies

• Access to seed funding is still scarce

• Capital committed to impact investing is strongly related to philanthropic

investors


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Trends

• The sector is mainstreaming

• Improvement on impact measurement

• Investing on talents and other sector intermediaries (incubators/ accelerators)

Official Release

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- Launch Date: August, 29th – Sao Paulo, Brazil

- Access to the report:

www.aspeninstitute.org/ande

www.aspeninstitute.org/andebrazil

- Contact: [email protected]

http://www.aspeninstitute.org/ande

http://www.aspeninstitute.org/ande

http://www.aspeninstitute.org/andebrazil

http://www.aspeninstitute.org/andebrazil

mailto:[email protected]

Obrigada!

Impact Investing Conference, August 2014...ANDE 3 The Aspen Network of Development Entrepreneurs (ANDE) is a global network of organizations that propel entrepreneurship in emerging

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