2. Social Investing & Tunisia
Social/Impact investing unlocks more capital for companies, funds and other vehicles that generate positive social
and/or environmental outcomes
Venture philanthropy (VP) takes concepts and techniques from venture capital finance and high technology business
management and applies them to achieving philanthropic and development goals.
Social investing and VP are growing trends considering the ineffiencies of aids and donations: the number of funds
engaged in impact investing has grown quickly in the last five years, and a 2009 report from the Monitor Group, a
research firm, estimated the impact investing industry could grow from its present $50 billion or so in assets to $500
billion in assets within the next decade. This capital may be in a range of forms including equity, debt, working capital
lines of credit, and loan guarantees.
There is now an opportunity to bring social and venture philanthropy investments to Tunisia.
The Diaspora can play an important role by investing in social funds to support their home country
Social Return
meeting Financial
social needs in Return
education, meeting
health, access market
to finance etc. requirements
3. What sort of fund?
The money raised (from donors, social investors, foundations,
development banks) to establish the fund will not be donated but invested
in order to actively achieve social and environmental goals
The fund can invest directly in social entrepreneurs with high impact on
their communities (option 1) and/or can be used as a guarantee for loans
to these entrepreneurs (option 2) as exposed in the following slides
Social/Impact Social Positive Growth and
Investing Entrepreneurs impact development
4. Option 1: Guarantee Fund
Wealthy Individuals
Guarantee for Micofinance
loans insititution:
ENDA
Development
organizations
Social
International Social Investment
Investment Fund Fund
Intermediary fund
Leveraging
Tunisian expats/
crowd sourcing Invested in Financial Markets
(ex: 33needs.com,
Microplace)
5. Option 2: Direct Investment
Wealthy Individuals
Seed
Development Social Funds
organizations Investment
Fund
International Social
Investment Fund S&ME International
fund ex: Maghreb
Tuninvest Merchant
Bank
Intermediary fund
Leveraging
Partners/fund managers for
Tunisian expats/
“risky” social enterprises
crowd sourcing
(ex: 33needs.com,
Microplace)
6. How to select social entrepreneurs?
To achieve “impact through finance”, the fund will target social entrepreneurs
with high impact on society and environment, through competitions,
acceleration programs, direct applications, regional networks, and incubators.
Below are some representative examples of social entrepreneurs (fictional):
Rached is starting Dev-Maghreb to
Ahmed needs funds to start scaling
offer development, consulting and
up his Zitlamp, a prototype that
financial assistance to associations
converts waste from olive oil
in Tunisia, Algeria and Marocco. The
factories into a powerful source of
services of his for-profit company
clean energy.
also include training and partnership
building with development
organisation in US, Asia and Europe.
Alia is the owner of Artisanes , a Jamila is requesting financial
company that manufactures and support to establish Transparency
exports hand crafted bags and Desk, the first online advisory firm
jewelry , with “fair trade” in Tunisia that is dedicated to
certification, exclusively employing corruption fighting and bribery
women from disadvantaged areas, reporting.
from where the Tunisian revolution
started.
7. What to do with the returns?
As explained, investments will meet specific financial requirements.
Returns might be sub-market but they will exist. We thought about 3 ways
to handle returns. Option 2 and 3 would improve the social mission of the
fund:
Option 1: Back to the limited partners;
Investments Option 2: Reinvested;
Option 3: Given as grants to capacity building.
8. Reaching the Tunisian Diaspora
This fund can be financed in a large part by enthusiastic and engaged Tunisian
expats , who are spread accross Europe and North America.
An effective web platform would be the best way to reach them!
Crowdsourcing would allow to gather « small » participations from a large
number of Tunisians abroad (like Kiva.org, Microplace, 33needs.com)
Crowdsourcing would be one of the main innovations of the fund.
Serious partners dealing with the Diaspora would allow an effective
promotion
10. Various incentives, Common Fund
Tunisi[n @ro[^
Tunisi[n @ro[^
We assume that an established PE firm will
Fun^ M[n[g_r
accept to assist in managing the fund for the
following reasons: The Diaspora will be interested in investing in
-Positive impact on its reputation which will the private sector development of Tunisia
allow the firm to raise more funds for other instead of donating. They will appreciate being
investments; reached through social media and web
-It will allow the manager to build platforms.
relationships with more entrepreneurs and
capture future deals .
So]i[l Entr_pr_n_ur
Growing number of international investors
are seeking funds that exclusively deal with
The entrepreneurs are seeking for relevant
Inv_stor
high social impact entrepreneurs.
funds that have the expertise and the network
Venture Philanthropists are willing to
to leverage their social impact and their
support international entrepreneurs that are
innovative ideas.
not attractive for “ordinary” funds: early
stage, risky idea, small market etc.
11. Join the project!
If you wish to know more and/or want to get involved, please contact:
Hatem Mahbouli
Tounesna Fund Project Manager
hm289@georgetown.edu
www.hatem-mahbouli.com
Hatem Mahbouli is currently pursuing an MBA at Georgetown
University, in Washington, DC. He has been involved in several
projects to develop impact investing and Social VC with Ashoka,
Grassroots Business Fund, 33needs.com and GrayGhost Ventures .
Hatem has also a Master’s degree in Telecom Engineering and had
worked for 3 years in Accenture, Paris Office.
12. General Overview
Guarantee for
Wealthy Individuals micro-credits
MFI
Ex: ENDA Social business
Financial return
competitions
Development
organizations Social
Networks
Investment
Fund
International Social Applications
Investment Fund
Social return
PE and Social
VC firms Banks Entrepreneurship
Intermediary fund
Leveraging Tunisian Center/hub
expats crowd
sourcing Development
Partners/fund managers for Service Firms
(ex: 33needs.com,
risky social enterprises
microplace)
SOURCING
FUNDRAISING
