International Summer
Class Schedule
Student Learning Outcomes
JULY · 2 - 4 · COURSE 2020
Innovative Financing (IF) is an approach to funding enterprises and
interventions that create positive social and environmental impact.
It looks to use all available financial and philanthropic tools to
support the growth of these enterprises and, when the existing
tools don’t work, it promptly creates new ones. Impact Investing,
Venture Philanthropy and Blended Finance are all forms of IF. This
course aims to give students an overview of the Innovative Finance
space by examining the evolving roles of stakeholders, including
investors, foundations, high net worth individuals, governments,
corporates, communities, non-profits, social enterprises and social
entrepreneurs, in developing and applying new financial vehicles
and structures to allocate capital in a way that includes
measurement of social and environmental impact.
As a result of this course students will be able to:1. Explain and discuss innovative finance practices to enable
engagement with investors, foundations, development finance
organizations, government and civil society approaches towards
creating social and environmental impact.
2. Design, select and apply appropriate and creative approaches,
solution, services, processes or technologies to complex social
and environmental problems
3. Apply transformative perspectives in conceptualizing, designing
and implementing solutions that aim to address complex social
challenges.
4. Demonstrate the development of concepts, mindsets, skills, and
relationships that will enable them to engage and evolve as active
innovative financiers throughout their careers, regardless of
position or sector
July 2 | 05:30 pm - 09:30 pm
July 3 - 4 | 09:00 am - 12:00 pm & 01:30 pm - 05:30 pm
Aunnie Patton
Innovative Finance
Innovative Finance
GRADES ARE BASED ON A SCALE FROM · 0 TO 5 POINTS ·
Policy on Incompletes: An Incomplete grade is not an option that you can select because you find that you weren't
able to get everything done. The purpose of an incomplete is to provide a reasonable time extension for a student
who cannot complete the course requirements by the usual time because of some bona fide emergency (an illness
requiring hospitalization, etc.). Incompletes are generally unproductive for both the student and the instructor.
They should be avoided if at all possible
Extra Credit: Extra credit is not available in this course.
ASSIGNMENT/GRADING ITEM DUE DATE PERCENTAGE
Policies and Requirements
Grading
Attendace: This course has interactive and participatory aspects
and contain both individual and group applications. Your presence,
involvement, and contributions are regarded as an essential part of
your creative learning and as equally essential to the learning of
others. Attendance, preparation, and participation are expected and
are included in your final evaluation.
Quiz: Students will need to complete a test on investment
structures. This will be distributed in class on the 4th.
Paper: Your paper is designed to help you analyze and reflect your
opinion and findings on innovative financing. Your paper should
draw on sources from the reading list and external research.
Paper is due on June 17 (start your paper early!). It should be 6-7
page double-spaced paper. The 6-7 pages in the paper do not
include the cover page and reference section. Your paper should
be sent to the assistant professor electronically. Please submit a
Microsoft Word version of your paper. Please use the following
naming conversion to label your file, last name CRS 559 paper
(e.g., Smith CRS 559 paper).
Students in this course will be evaluated based on their
performance on the following components: Attendance, Quiz and
Paper.
Structures Quiz
Final Paper
July 4
July 17
20%
80%
Example: Assignments are due when allocated, regardless of your
presence or absence. It is your responsibility to meet this deadline.
For a successful experience in this class, please pay careful attention
to your planning and accountability regarding assignments.
Expected Online Room Behavior
· Participating in class activities
· Respecting the diversity of cultures, opinions, viewpoints in
the classroom
· Listening to fellow students, professors, and lecturers with respect
· Prepared for class
Innovative Finance
Academic Misconduct Policy
Certain student behavior will result in the lowering of the course
grade by at least one point level. These behaviors include, but are
not limited to:
- Intentional disruption, obstruction, or interference with the process
of instruction
- Dishonesty, including cheating, knowingly furnishing false
information, or plagiarism
Plagiarism: According to APA's publication manual (1994),
"Quotation marks should be used to indicate the exact words of
another" (p. 292) "Each time a source is paraphrased, a credit for
the source needs to be included in the text." (p. 294) The key here
is not to present the work of another as being your own. Otherwise,
it is considered plagiarism.
By accepting this contract, students agree that papers may be
submitted to a plagiarism detection software. Papers will only be
submitted if there exists a suspicion of plagiarism. Students may
receive a zero for a written assignment if plagiarism is identified.
Course Syllabus
Innovative Finance
Introduction & Definition of Innovative Finance and Impact Measurement
· Innovative Financing (IF) is an approach to funding enterprises and interventions that create positive social
and environmental impact. It looks to use all available financial and philanthropic tools to support the
growth of these enterprises and, when the existing tools don’t work, it promptly creates new ones. Impact
Investing, Venture Philanthropy and Blended Finance are all forms of IF. This first session introduces the
concept and theory behind IF and where it fits on the new investment continuum. This session will also look
at what the current state of the market is worldwide. This session will also focus on the Impact Measurement
frameworks inherent in IF. It will focus on impact measurement from the investor level and from the
organizational level. We will look at some of the issues around impact measurement and the current
discourse in the space.
- Required viewing: Why do we innovate? (8:27) -
What is Impact? (7:30)
Different Types of Funders (6:05)
Information on Funders (2:14)
Theory of Change (4:58)
Measuring your social impact – Theory of Change (2:25)
- Required Reading:· Bertha Centre. (2016). Innovative finance in Africa: Review. Pages 4 – 7 Bertha Centre for Social Innovation
& Entrepreneurship, Graduate School of Business, University of Cape Town. Retrieved from
http://www.gsb.uct.ac.za/Downloads/InnovativeFinanceAfrica_1.pdf
· Vanderwal, P., (2018). The ABCs of Innovative Finance. Stratigos.
· Schiff, H., Bass, R. & Cohen, A. (2016). The business value of impact measurement. GIIN
· Dichter, S., Adams, T. & Ebrahim, A. (2016). The Power of Lean Data. Stanford Social Innovation Review.
Retrieved from: https://ssir.org/articles/entry/the_power_of_lean_data
JULY 2
Course Syllabus
Innovative Finance
JULY 2
Innovative Resourcing & Alternative Early Stage Financing
· In the first part of this session, we are going to focus on the resources that can be utilized by entrepreneurs
and funders to achieve social and environmental outcomes. The primary goal of this session is to get students
to think creatively about their assets, revenue streams and funding sources. The class will work to create
strategies using these categories for several cases of non-profits, social enterprises, governments,
development organizations and investment funds, which they will bring to class.
· In the second part of the session, we will focus on alternative early stage structures from impact-linked loans to
demand dividends. This represents a whole set of innovative structures between equity and debt that can be
customised to fit entrepreneurs needs. These structures have a brand new approach to addressing issues
around founder ownership, funder impact preferences, affordability of capital, exits and more.
- Required viewing:Introduction to Week 3 (1:24)
Identifying Revenue Streams – Part 1 (3:23)
Identifying Revenue Streams – Part 2 (7:36)
Outcomes based contracting (6:50)
Monetizing assets (12:09)
Risk / Return / Impact (4:58)
Real and perceived risk (3:56)
Impact Risk (3:39)
Early Stage Risk & Scalability Risk (5:01)
Manager Risk (2:38)
Liquidity Risk & Exit Risk (4:01)
- Required Reading:· Roots of Impact, 2019. Accelerating Impact Linked Finance.
· Rayner, C. 2017. Risk & Funding Structures. University of Cape Town.
· Use resources from Government Outcomes Lab at the University of Oxford for Outcomes Based
Contracting: https://golab.bsg.ox.ac.uk/
· Benink, E., Winters, R. New perspectives on financing small cap SME’s in emerging markets: the case for
mezzanine finance (2016). Dutch Good Growth Fund.
· Ben-Ami, A. Square peg, Round Hole: Innovating Finance for Social Enterprises (2018). Medium.
· Gianoncelli, A. and Boiardi, P., (2017), “Financing for Social Impact– The Key Role of Tailored Financing and
Hybrid Finance”. EVPA.
· Armeni, A., and Ferreyra De Bone, M., (2017), “Innovations in Financing Structures for Impact Enterprises:
Spotlight on Latin America”. OMIN, Rockefeller Foundation, Transform Finance.
JULY 3
Course Syllabus
Innovative Finance
Innovative Capital Stacking
· This day will begin with a quiz on alternative funding structures.
· For the rest of the session, we will walk through the full spectrum of options for catalytic capital including
guarantees, first loss capital, outcomes payments, convertible grants and loans, syndication, technical
assistance, evergreen funds, impact carry, advanced market commitments and more. These tools can be
used effectively to increase access to funding, decrease costs of capital and incentivize impact through
de-risking, crowding in, reducing borrowing costs and tying impact to capital allocation.
· This will include two group activities.
- Required Reading:· Sarona Case Study. Convergence. 2016.
· A Resource for Structuring Blended Finance Vehicles. GIIN. 2018.
· UK Cabinet Office (2013) Achieving social impact at scale: case studies of seven pioneering
co-mingling social investment funds.
· Bridges Ventures. Shifting the Lens: A De Risking Toolkit (Rep.). Retrieved from:
http://www.trilincglobal.com/wp-content/uploads/2014/01/BV_BoA_de-risking_report_FINAL-2.pdf
· Tideline. (2019). Catalytic Capital – Unlocking More Investing and Impact. Retrieved from:
https://tideline.com/wp-content/uploads/Tideline_Catalytic-Capital_Unlocking-More-Investment-and-I
mpact_March-2019.pdf\
JULY 4
READINGS: CREATING BRANDS PEOPLE LOVE - BRIAN TILL & DONNA HECKLER