TBLI LATIN AMERICA 2015 - Diego Luzuriaga - Workshop Sustainability Fund Strategies

SURVEY ON IMPACT INVESTING

 We will go through 5 statements about impact investing

 Please choose one of the following answers by raising your hand :

1 2 3 4 5 Strongly Agree

Strongly Disagree

STATEMENT 1

In relation to a potential investment / financing, your work with an impact entrepreneur starts at the moment of the negotiation

1 2 3 4 5 Strongly Agree

Strongly Disagree

Your work begins much earlier, many entrepreneurs require a great deal of help to become “investment-able” (walking along)

STATEMENT 2

Results-wise, the entrepreneur’s track record is more important than the quality of the business plan (market, product, execution)

1 2 3 4 5 Strongly Agree

Strongly Disagree

Track record helps, but is not a sufficient condition for success, whereas a good business plan with the appropriate execution may be

STATEMENT 3

Product-wise, the flexibility of the financing/investment product pays off much more than the simplicity of a single product

1 2 3 4 5 Strongly Agree

Strongly Disagree

By far, flexibility has proven to be a key factor for success. Financing requirements are highly diverse and should be adapted to each case

STATEMENT 4

Even considering the nature of TBL projects, investment funds should keep strong legal provisions in the contracts to protect their investments

1 2 3 4 5 Strongly Agree

Strongly Disagree

Contracts are made for rainy days. The entrepreneur’s goodwill is not enough; when the moment comes, you need to be protected

STATEMENT 5

Investors should treat their investments in TBL projects as any other investment

1 2 3 4 5 Strongly Agree

Strongly Disagree

Investors should become involved in projects for two reasons: to help survive and scale the projects and to LEARN

KEY CONCLUSIONS

 Be very flexible in the financing conditions, but protect your investment with actionable legal provisions

 Social entrepreneurs are neither better nor worse than other

entrepreneurs

 You will need to dedicate a great deal of time in helping the

entrepreneur to become investment-able

 You will need to walk along the entrepreneur

 Be humble to learn, smart to add value and daring to take the risk

EQUITAS TRUST FUND

EQUITAS DEALFLOW SOURCES