mercy corps’ social venture fund · mercy corps’ social venture fund mercy corps is a leading...

MercyCorps’SocialVentureFundMercyCorpsisaleadingglobalorganizationpoweredbythebeliefthatabetterworldispossible.Indisaster,inhardship,inmorethan40countriesaroundtheworld,wepartnertoputboldsolutionsintoaction—helpingpeopletriumphoveradversityandbuildstrongercommunitiesfromwithin.Now,andforthefuture.

MercyCorps’SocialVentureFundisaseedandearly-stageimpactinvestmentfundlaunchedin2015.Weinvestcapitalandprovideaplatformtoacceleratethegrowthofdisruptivestartupbusinessesthathavethepotentialtopositivelyimpactmillions.

MercyCorpsseescomplexglobalchallengesasaninvitation:topioneerpathsoutofpoverty,toforgenovelpartnerships,tocreatesolutionsthatbreakthroughentrenchedchallenges.Butthetraditionalgrant-basedmodeloffundinginternationaldevelopmentislimiting.Itrarelypromotestheflexibilityandexperimentationrequiredtotestnewmodelsthatcouldsustainablydeliversocialbenefittomillionsofpeopleinthedevelopingworld.Socialentrepreneursworldwideareattheforefrontofintroducingsuchmodels,oftenthroughfor-profitventuresthatrequireinvestmentcapitaltoexpandtheirprovisionofbeneficialgoodsandservices.TheSocialVentureFund,whollyownedbyMercyCorpsandcapitalizedthroughphilanthropicsources,fillsacriticalgapintheimpactinvestingmarketforseedandearly-stagesocialventurestartups(learnmoreabout“ThePioneerGap”).WebelievethatconnectingthesestartupstotheMercyCorpsplatformwillacceleratetheirgrowthandimpact.

WhyMercyCorps?MercyCorps’globalfieldofficeshavedeep,on-the-groundinsight,withbothaccesstoandinfluencewithinchallengingmarkets.Moreover,becauseofourmarketsystemsprogrammingapproach,weareconstantlyidentifying,supportingandcollaboratingwithinnovativeprivate-sectoractors.Inpartnershipwithfieldoffices,theSocialVenturesteamexploresinvestmentopportunitiesthatalignwithlocalprogrammingandaddressmajordevelopmentchallenges.

WebringMercyCorps'resourcestobearonstartupsthrough:

Morethan4,500staffexecutingsocialandeconomicdevelopmentprogrammingacross40+countries.

Technicalexpertsinavarietyoffields,includingagriculture,financialservices,WASH,andenergy.

Strongrelationshipswithkeygovernmentactors,private-sectorentitiesandotherinfluencers.

AdvisorysupportfromseasonedentrepreneursandinvestorsontheSocialVenturesteam.

OurApproachandFocusWeinvestinfor-profitventuresthatattempttosolvemanyofthebigchallengesthatMercyCorps’programsaddress:

Geography: Kenya,Uganda,Indonesia,NepalFocalareas: Agriculture,financialservices,last-miledistribution,youthandfemaleemploymentInvestment: US$50,000-$300,000(equity,debt,quasi-equity)Stage: Seedandearly-stageOthercriteria: Closealignmentwithlocalfieldofficestrategyandpriorities,innovation,potentialtoscalenationallyandregionally(impactover1millionpeople)Prospectiveportfoliocompaniesneednothavesignificantrevenuetractionbutshould:

Haveadefinedproductorservice,withadifferentiatedapproachthatcanscale.

Haveafull-timeteaminplace.

Haveapilotorprototypeinthemarket.

OurPortfolioAsofMay2016,wehaveclosedfourinvestmentsinIndonesiaandKenya,includingthefollowingcompanies:

NewLightAfricaNairobi,KenyaNewLightAfrica(NLA)isadirectmarketinganddistributioncompanythatsellssociallybeneficialproductstotheruralpoor.NLA’smissionistoimprovethequalityoflifeformillionsofpeopleinSub-SaharanAfricawhoprimarilyliveofftheelectricitygridbyofferingproductssuchassolar

lights,fuel-efficientcookstoves,alternativefuels,waterpurifiersandwaterheaters.NLA,operatingunderthelocalbrandHEYA!inKenya,planstobuildawidelydistributedsaleschannelthroughlocalagents,withaggressiveplanstoofferfinancinginthesalesprocess,fromlocalretailertoendconsumer.

VashamJakarta,IndonesiaVashamleveragesaclosed-loopbusinessmodeltoprovideIndonesiansmallholderfarmswiththefinancing,expertise,incomesecurityandmarketlinkagetheyneedtoachievesignificantlybetterstandardsofliving.Vashamaggregatesandprovidesabundleofservicestosmallholder

farmersgrowingstaplecrops.Thoseservicesincludeinputandworkingcapitalloans,farmeradvisorythroughmobilechannelsandfieldofficers,andmarketlinkageatanabove-marketpricepremiumviaitsoff-takepartner.Vashamaimstoserveover200,000farmersacrossIndonesiaby2020.

OurTeamandAdvisoryBoardOurSocialVenturesteamiscomposedofseasonedentrepreneurs,investorsandconsultants.Webringextensiveexperienceinlaunching,scalingandadvisingdisruptivestartupenterprisesinemergingmarkets.BasedatMercyCorps’U.S.headquartersandinourfieldofficesinEastAfricaandLatinAmerica,weaimtoembedourselvesdeeplyinlocalstartupecosystems.

MICHAELMACHARGSeniorAdvisorandTeamLead|SocialVenturesmmacharg@mercycorps.org SCOTTONDERSeniorAdvisor|SocialVentures(Sub-SaharanAfrica)sonder@mercycorps.orgCHRISWALKERSocialInnovationsDirector|InnovationInvestmentAlliancecwalker@mercycorps.org

TIMOTHYRANNSeniorAdvisor|SocialVentures(SEAsia&LATAM)trann@mercycorps.orgAMANDAWESTProgramOfficer|InnovationInvestmentAllianceawest@mercycorps.org

WearealsofortunatetodrawuponthewisdomandexperienceoftheSocialVentureFund’sAdvisoryBoard:TomKefferCo-Founder|RogueWaveSoftware

GiselKordestaniCo-Founder|Crowdpac

NedLamontFounder|LamontDigitalSystems(CampusTelevideo)

MikeMaerzFormerVPInternetProductsDivision|Intel

DavidMahoneyFormerCEO|iMcKessonLLC

LindaMasonChair&Founder|BrightHorizonsGreyMcLeanDirector|AdiuvansFoundation

LisaValoneInvestor&Philanthropist

JimValonePartner|WellingtonManagementCompany,LLP

KentWalkerSeniorVP&GeneralCounsel|Google

SusanWhiteheadInvestor&Philanthropist