making the market: social venture fund

1

In the beginning there was…….

2

Which led to…….

3

Portfolio One

•$10mm in developing market enterprises;

•GMC Exempt Entity (Operating Foundation)

•Greatly exceeded financial, social expectations

•Eight investments in 38 months;

•Six have secured a 2nd round of financing;

•Four do not appear to have a need to raise additional capital over the next 12 months;

•No write-offs

4

Problem: 1.6 billion people light with kerosene

•Annual cost of $38 billion;

•1.5 tons of carbon dust per lamp every 5 years;

•Toxic fumes;

•Thousands burned & maimed in fires.

5

Solution: Rechargeable LED Lamps•100X greater duration than fluorescent•Optional solar charger;•Mini-power station;•Seven month payback from kerosene savings;•11% increased productivity;•Partnering with MFI’s•Sales: > $1.2 million*Bonus* - Extra 1.4 hrs homework per child/lamp.

6

Problem: Microentrepreneurs lack pricing info, internet access

Solution: Cell phone access to market info, buyers & suppliers

•Bangladeshi farmers now gross 40% more;

•Service is free due to the increased SMS text traffic.

7

Drive-by wifi and supply chain

8

Remittances by cell phone without a bank account

9

Co-Investors Include:

The Barred Rock Fund

Omidyar Network

UPSGarage Technology Ventures

Draper Fisher Jurvetson

10

Portfolio Two

•$35mm for profit fund;•Fiduciary investor (DOEN)•Focused on emerging market mobile phone technology;•Hired the former CFO T-Mobile to lead fund management;•70% focus in India; one of the few ways to participate in the booming economy;

– 6.4% projected GDP growth;– largest middle class in the world;– 440,000,000 mobile phones in use

•$30mm raised to date;•Open to select investors.

11

GGV Social Investments Holdings LLC

(USA)

Member

Custodial Agreement

Global Investment Manager Agreement

Gray Ghost-DOENCooperatief, UA

(Netherlands)

DOEN Participaties BV(Netherlands)

SonaltenVentures Ltd

(Cyprus)[FVCI]

Indian Investment Portfolio

Other CountriesInvestment Portfolio

GGV Equity Plan LLC

(USA)

GGV Social Investments Holdings LLC

(USA)

FVCI Custodian

Investment Manager for Netherlands Fund & its

Cyprus Subsidiary

WWV/Management & Operations LLC

(USA)

Investment Manager

MemberMember

Sub-Advisor Agreement

Third PartyProvider(India)

ATCCorporate Services Provider for domicile

purposes

Why start a separate fund???

12

Financials

Total Equity $35,000,000

Portfolio Performance (Gross IRR) 26.6%

Returns to LPs (Net IRR) 20.1%

Average Hold Time (Years): 6.0

Average Cash/Cash Multiple: 3.4X

13

www.grayghostventures.com

Handouts available or contact Jennifer McReynolds at (678) 365-4734

14

www.grayghostventures.com

Handouts available or contact Jennifer McReynolds at (678) 365-4734

15