There is a growing belief that businesses must do more than create value for shareholders. Non-profits and government cannot address current and future societal and environmental challenges without corporate involvement. If you are a startup looking to create value beyond profit, then you will want to learn about Certified B Corporations. This new type of corporation uses the power of business to solve social and environmental challenges. These types of certifications are ideal for raising capital from socially conscious investors. Join us as Joyce Sou, Manager of B Corporations and Social Impact Metrics at the MaRS Centre for Impact Investing, discusses how Social Venture Connection (SVX) is helping capital flow for social impact ventures. Participants will learn about the following: What is impact investing? What is a B Corporation? How does SVX help B Corporations get investment?

1. Social
Impact
Ventures
&
Raising
Capital:
B
Corps
and
the
Social
Venture
Connexion
!
By: Joyce Sou!

2. 2014-04-09 Pg 2

3. Agenda
 Impact
Inves<ng
and
MaRS
CII
 Social
Ventures
–
B
Corpora<ons
 Funds
–
Raising
capital
through
the
SVX
 Ques<ons

4. Background:
Impact
Inves5ng
What
is
impact
inves.ng?
An
impact
investment
is
an
investment
in
a
project,
business,
or
financial
vehicle
with
the
explicit
inten<on
to
create
a
posi<ve
impact
and
generate
a
financial
return.
********
Impact
investors
seek
to
move
beyond
“doing
no
harm,”
and
towards
inten<onally
deploying
capital
in
businesses
and
projects
that
can
provide
solu<ons
to
societal
problems.

5. 5
$5.3B
$100B
$400B
-­‐
$1T
$30B
WORLD
WORLD
CAN
CAN
2012
2022
Key
Sectors:
Clean
technology,
sustainable
agriculture,
affordable
housing,
and
barrier-­‐breaking
enterprises.
Background:
Impact
Inves5ng

7. 7
Background:
MCII
Community
Finance
Solutions
Social
Impact
Bond
Incubator
Venture and
Capital Programs
Education and
Knowledge
Creation
Policy and
Development
Research reports, educating
and engaging prospective
talent, ventures, and
investors, disseminating
knowledge.
Catalyzing funds, connect
investors and ventures and
developing capital initiatives.
Advancing recommendations
of the Task Force, including
legislative reforms & tax regs,
and outcomes-based financing.

9. Greed
is
good.

11. Only
charity
and
government
can
do
good.

12. “[T]here is one and only one
social responsibility of business -
to use it’s resources and engage
in activities designed to increase
its profits...”

13. Maximize
Shareholder
Value

14. Pg 14!
73% of consumers care
about the company, not just the
product when making a
purchasing decision.
<1% of consumers trust
company advertisements or
statements on packaging
80% of Millenials expect to work
for a company that has a positive
social impact

15. Certified B Corporations are a new
type of corporation which uses the
power of business to solve social
and environmental problems.
What is a B Corporation?!
video

16. Pg 16

17. Pg 17!

18. What is a B Corporation?
Pg 18!
Environment
Workers
Governance
Community
Redefining Success

19. Workers: The lowest paid
hourly worker receives 46%
above the living wage
Community: Contributed >5,000
hours of community service
45% of COGS goes towards investing
and supporting small scale suppliers
Donated >5% of profits to charity
Environment:
Offset >50% of emissions with
certified carbon offsets
Pg 19!

20. Pg 20!

21. Pg 21!

22. Pg 22!

23. >990B Corporations
60 Industries
30 Countries
>110 Canadian B Corps

27. Pg 27!

28. Access to Capital – GIIRS/B Analytics
Pg 28!
Invest for impact.

29. Pg 29

30. Maximize
Shareholder
Value

32. We won’t have a new economy without a new type of corporation.
More than just a standard…
Pg 32!
20th Century:
Shareholder Capitalism
21st Century:
Stakeholder Capitalism
Maximize
shareholder value
almost exclusively
Create social
and shareholder value
simultaneously

33. We hold these truths to be self evident:
That we must be the change we seek in the world.
That all business ought to be conducted as if people and
place mattered.
That through their products, practices, and profits,
businesses should aspire to do no harm and benefit all.

34. To do so, requires that we act with the
understanding that we are each dependent upon
another and thus responsible for each other and
future generations.

36. SVX
is
a
new
impact
inves<ng
plaPorm
connec<ng
impact
ventures,
funds,
investors,
and
service
providers
to
catalyze
debt
and
equity
investments
that
generate
social
and/or
environmental
impact
alongside
the
poten<al
for
financial
return.
MaRS
VX,
the
parent
company
for
SVX,
is
an
nonprofit
organiza<on,
incorporated
in
Canada.

37.  Access
to
capital
and
investors
 Raising
capital
is
costly
Problem
A
growing
group
of
social
entrepreneurs
and
impact
investors,
but...
There
is
an
uncoordinated
impact
inves5ng
marketplace.
 Finding
quality
deals
and
co-­‐investors
 Due
diligence
is
costly
and
5me
consuming
Ventures
Investors

38. Impact Investing+!
A
single
access
point
for
impact
ventures
and
investors
Solu5on

39. 39

40. Features & Benefits
How does SVX work?

41. Ventures
What
is
the
target
profile
of
SVX
issuers?
Inclusion
Co-­‐ops
Clean
Technology
Nonprofits
&
Chari5es
Community
Infrastructure
Health
and
Wellness
For-­‐profit
businesses
Sustainable
Food
Educa5on
&
Social
Tech
Loans
I
Bonds
I
Co-­‐op
and
Common
Shares
I
Limited
Partnerships

42. Target Issuers
Impact ventures and funds (<$25M revenues) including nonprofits
(including charities), co-operatives (nonprofits and for-profits), and for-profit
businesses looking for $25K - $10M.
Who are the target ventures and funds?

43. Target Issuers
43
Who are the target ventures and funds?

44. Two
Cohorts
of
Issuers

45. Investors
What
is
the
target
profile
of
SVX
investors?
Founda5ons
Family
Offices
Financial
Ins5tu5ons
Angel
Investors
Venture
Capitalists
HNWIs
Alterna5ve
Financial
Ins5tu5ons
Impact
Funds
Accredited
Investors

46. Pla[orm
 Public
frontend
to
aZract
poten<al
customers
alongside
private,
secure,
password
protected
plaPorm
 Custom
built
by
The
Working
Group
on
Ruby
on
Rails
with
following
func<ons:
 Online
applica5on
and
progress
tracking
with
tool
<ps
to
answer
customer
ques<ons
 Keyword
and
Category
Search
Directory
 Private
Deal
Rooms
with
document
sharing
and
interac<on
 Clean
profile
views
with
feature
plugins
including
YouTube
and
Slideshare
 Full
user
management
(Delete/Approve/Create
users)
and
content
management
 Venture
tools
and
templates
(e.g.
term
sheets,
pro-­‐forma
projec<ons)
46
How
does
the
online
plaAorm
work?

49. Access
Requirements
What
is
the
process
for
accessing
the
SVX?
Governance
&
Management
• Ontario
incorporated
• Strong
governance
structure
• Evidence
of
relevant
exper<se
within
management
and/or
directors
• Disclosure
of
any
current
or
past
legal
ac<ons
against
management
and/or
directors
Impact
• Ontario-­‐focused
impact
• Five
(5)
Key
Performance
Indicators
(IRIS-­‐
based
if
possible)
• GIIRS,
3rd
party
ra<ng
(or
B
Corp),
for
social
purpose
businesses
• Impact
narra<ve
Financials
• Revenue-­‐genera<ng
($50k
-­‐
$25M
annually)
• No<ce
to
Reader
financial
statements
• Pro-­‐forma
projec<ons
• Adequate
current
assets,
fixed
assets,
or
cash
reserves
• Ownership
informa<on,
including
past
and
current
sources
of
capital
Other
• Complete
business
plan
• External,
professional
references
• Auditor/reviewer
&
legal
counsel
contact
informa<on
• Debt
&/or
equity
capital
need
($25k-­‐10M
for
ventures,
$2-­‐50M+
for
funds)
• IP
&
R&D
informa<on
(if
necessary
should
venture
not
meet
revenue
requirements)

50. Four Stages:
Registration, Application, Review and Matching
How
does
SVX
work?
Process