Presentation at the 5th Global Science Conference on Climate-Smart Agriculture. Title: Business Model Inspiration and Ideas for Scaling CSA Speaker: Edoardo Cavallo

1. Business Model Inspiration
and Ideas for Scaling CSA
Edoardo Cavallo
Investment Officer - Mirova Natural Capital
CSA 2019, Side event, Bali, October 10

2. Roadblocks to CSA financing?
Small ticket sizes lead to high
transaction costs
Innovative approaches with lack of track
record and subject to agri-related risks

3. https://cgspace.cgiar.org/bitstream/handle/10568/49606/LINK_Methodology.pdf
Approaching CSA from a business angle

4. Navigating the business lexicon
Unit Economics: “direct revenues and costs associated with a particular
business model expressed on a per unit basis”
• Incremental Cashflow Analysis: (cash inflow from new business
model – cash outflow from new business model) – (cash inflow status
quo – cash outflow status quo)
• Value of Time: a dollar today is better than a dollar tomorrow ->
especially relevant in CSA interventions where benefits may be relevant
only over a long time-horizon

5. https://upload.wikimedia.org/wikipedia/commons/8/83/Cash_Flow_Model_in_Project_Portfolio_Management_Simulation_SimulTrain%28R%29.jpg
Project finance analysis

6. Navigating the business lexicon (iii)
Total Available Market aka “Your vision”
Serviceable Available Market aka “Get
your investors excited”
Serviceable Obtainable Market aka
“Scalability vs Replicability Limitation”

7. Navigating the business lexicon (iii)
Term Sheet: how much money do you need, which instrument and at
which condition (horizon, interest rate)
• Equity: long-term but requires giving up ownership
• Debt: short, medium or long-term but usually requires proven business
models and collateral