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Impact Investing Conference, August 2014
- About ANDE
- Trends in the SGB Global Sector
- The Brazil Impact Investing Sector
2
ANDE
3
The Aspen Network of Development Entrepreneurs (ANDE) is a global network of
organizations that propel entrepreneurship in emerging markets. ANDE members
provide critical financial, educational, and business support services to small and
growing businesses (SGBs) based on the conviction that SGBs will create jobs,
stimulate long-term economic growth, and produce environmental and social benefits.
Ultimately, we believe that SGBs can help lift countries out of poverty. ANDE is part of
the Aspen Institute, an educational and policy studies organization.
ANDE Membership: An SGB Ecosystem
4
Capacity
Development
Providers
33%
Investors
29%
Corporations and
Corporate
Foundations
10%
Research and
Advisory Service
Providers
9%
Foundations
9%
Academic
Institutions
6%
DFIs and Donor
Agencies
4%
ANDE Members - Global Reach
5
65%
36% 51%
13% 72%
12%
32%
17%
36%
1%
59%
6%
Headquartered
in the region
Engaged
in the region
11%
Source: ANDE Member Database, as of 4/3/2014
Regional Chapter
ANDE members in Brazil
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• ICE (Entrepreneurial
Citizenship Institute)
• International Finance
Corporation (IFC)
• Impact HUB
• Instituto Inspirare
• JP Morgan
• LGT Venture Philanthropy
• Monitor Deloitte
• Nestlé
• NESsT
• Pipa
• Quintessa Partners
• Sitawi
• Solidaridad Network
• TechnoServe Inc.
• Village Capital
• Vox Capital
• Walmart
• Aliança Empreendedora
• Amani Institute
• ARTEMISIA
• Bamboo Finance
• BID Network
• Business Call to Action
(BCtA)
• CARE
• Christian Aid
• Citi Foundation
• eBay Foundation
• edge
• Endeavor
• EY
• Fundación AVINA
• Halloran Philanthropies
• LAVCA
• IADB - Multilateral
Investment Fund
ANDE – Activities
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1) Produce and share knowledge
• Map the ecosystem - Brazil impact Investing study
• Sector reports (Housing, Technology and Invention)
• Cases (Walmart Institute and Solidarium)
2) Promote connections
• Sector events
- Technology
- Invention
- Recycling/ Waste Management
- Education, Health
• Chapter meetings:
- Venture Capital, Metrics, Pipeline, Government
- About ANDE
- Trends in the SGB Global Sector
- The Brazil Impact Investing Sector
8
ANDE study
9
Decade of Growth for SGB Intermediaries
10
97
144
0
20
40
60
80
100
120
140
160
2004 - 2008 2009 - 2013
Number of Investment
Vehicles Launched
10 12
0
5
10
15
2004 - 2009 2009 - 2013
Number of ANDE
Member CD orgs
Founded
85% of Investment
Vehicles founded in
past decade
50% of Capacity
Development
Providers founded
in past decade*
*ANDE members only Source: ANDE Research
Fewer Funds, Larger Target Sizes
11
13 13 18
23 30 32 29
48
34
22
$-
$10
$20
$30
$40
$50
$60
$70
$80
0
10
20
30
40
50
60
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
US
D M
illi
on
s
Nu
mb
er
of
Veh
icle
s
Vehicles Launched
(n=262)
Median Target AUM (millions USD)
(n=167)
Regional Focus: More Global Funds
12
5% 6% 4% 6%
15%
24%
16%
16% 8%
8% 16%
13%
34% 27%
0%
20%
40%
60%
80%
100%
2004 - 2008
(n=97)
2008 - 2013
(n=144)
Sub-Saharan Africa
South Asia
MENA
Latin America & Caribbean
Global & Multi-Region
Europe & Central Asia
East Asia & Pacific
Source: ANDE Research
Continue to See Low Focus on Seed Stage
13
0
20
40
60
80
100
120
140
160
Seed Start-up Early Growth Mature
Nu
mb
er
of
Invest
men
t V
eh
icle
s
Target Stage
Median
deal size
$500,000
Median
deal size
$150,000
Median
deal size
$1,000,000
Source: ANDE Research
N = 223; 100 Investment Vehicles selected more than one stage
But Newer Vehicles Shifting That Trend
14 Source: ANDE Research
N = 149; Only investment vehicles that reported both inception year and stage
1 4 9 4
14
16 24
41
25
30
44 26
5 4 3
0%
20%
40%
60%
80%
100%
2005 - 2007
(n=41)
2008 - 2010
(n=66)
2011- 2013
(n=52)
Perc
en
tag
e o
f V
eh
icle
s
Inception Year
Mature
Expansion/Growth
Early
Start-up
Seed
Easier to Raise Funds than to Deploy
15
Source: ANDE Research
N=19, closed-end funds that reported inception year, committed
capital, and total capital deployed to date
48%
51%
39%
13%
2009
(n=4)
2010
(n=2)
2011
(n=10)
2012
(n=3)
Incep
tio
n Y
ear
Proportion of Committed Capital that Has Been Deployed
Brazil
16
• Base of the pyramid is a focus
• Need to expand to other geographies
• Identify financial resources for business with social impact
• Better understand governmental contracts
• Develop talents for the sector
- About ANDE
- Trends in the SGB Global Sector
- The Brazil Impact Investing Sector
17
Brazil Impact Investing Study
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Brazil Impact Investing Study
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Study criteria:
Brazil Impact Investing Study
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22 investors participated in the study
• 20 already making investments
• 2 planning to start in 2014
• 12 international
• 10 national
Brazil Impact Investing Study
21
Brazil Impact Investing Study
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Market Size and Investments
• Local market manages approximately $177 million in committed capital as
reported by 8 out of 9 local impact investors
• International investors active in Brazil manage approximately $3 billion in
committed capital
• Since the first investment in 2001, $76.1 million have been allocated to impact
businesses in Brazil
• 68 impact business received investments
• $90 million to $127 million are planned for investment in 2014 by national and
international investors
Brazil Impact Investing Study
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Key Sectors and regions
Sectors:
• Financial Inclusion (89%)
• Education (84%)
• Health (63%)
• Renewable energy, housing, waste management, water and sanitation
Regions:
• São Paulo main region
• Increasingly interest in Northeast
Brazil Impact Investing Study
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Trends
• Market will continue to grow: 5 local organizations expect to fundraise up to
$150 million in 2014, both in Brazil and abroad
• Risk aversion among investors: 83% of investments in early stage companies
• Access to seed funding is still scarce
• Capital committed to impact investing is strongly related to philanthropic
investors
Brazil Impact Investing Study
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Trends
• The sector is mainstreaming
• Improvement on impact measurement
• Investing on talents and other sector intermediaries (incubators/ accelerators)
Official Release
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Brazil Impact Investing Study
- Launch Date: August, 29th – Sao Paulo, Brazil
- Access to the report:
www.aspeninstitute.org/ande
www.aspeninstitute.org/andebrazil
- Contact: rebeca.rocha@aspeninst.org
Obrigada!
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