Mercy Corps Social Venture Fund Overview March 2016 — John Watt/Mercy Corps Our Approach and Focus...

MercyCorpsSocialVentureFundMercyCorpsSocialVentureFundisaseedandearly-stageimpactinvestmentfundlaunchedin2014.Weinvestcapitalandprovideaplatformtoacceleratethegrowthofdisruptivestartupbusinessesthathavethepotentialtopositivelyimpactmillions.

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

WhyMercyCorps?MercyCorps’globalfieldofficeshavedeep,on-the-groundinsight,withbothaccessto,andinfluencewithinchallengingmarkets.Moreover,becauseofourmarketsystemsprogrammingapproach,weareconstantlyidentifying,supportingandcollaboratingwithinnovativeprivate-sectoractors.Inpartnershipwithfieldoffices,theSocialVenturesTeamexploresinvestmentopportunitiesthatalignwithlocalprogrammingandaddressmajordevelopmentchallenges.WebringMercyCorps'resourcestobearonstartupsthrough:

Morethan4,500staffexecutingsocialandeconomicdevelopmentprogrammingacross40countries.

Technicalexpertsinavarietyoffields,includingagriculture,financialservices,WASH,andenergy.

Strongrelationshipswithkeygovernmentactors,private-sectorentitiesandotherinfluencers.

AdvisorysupportfromseasonedentrepreneursandinvestorsontheSocialVenturesTeam.

Nepal—JohnWatt/MercyCorps

OurApproachandFocusWeinvestinfor-profitventuresthatattempttosolvemanyofthebigchallengesthatMercyCorps’programsaddress.

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

Haveadefinedproductservice.

Haveafull-timeteaminplace.

Haveapilotorprototypeinthemarket.

OurPortfolioAsofMarch2016,wehaveclosedfourinvestmentsacrossIndonesia,NepalandKenya,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.Vashamaimstoserveover100,000farmersacrossIndonesiaby2020.

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

FOUADAOUNSeniorAdvisor|SocialVentures(EastAfrica)faoun@mercycorps.org

TIMOTHYRANNSeniorAdvisor|SocialVentures(SoutheastAsia)trann@mercycorps.org

MICHAELMACHARGSeniorAdvisor|SocialVentures(Global)mmacharg@mercycorps.org

CHRISWALKERSocialInnovationsDirectorcwalker@mercycorps.org

SCOTTONDERSeniorAdvisor|SocialVentures(Sub-SaharanAfrica)sonder@mercycorps.org

JEFFWISHNIESeniorDirector|ProgramTechnologyjwishnie@mercycorps.org

WearealsofortunatetodrawuponthewisdomandexperienceoftheSocialVentureFund’sAdvisoryBoard:

TomKefferCo-Founder|RougeWaveSoftware

GiselKordestaniCo-Founder|Crowdpac

NedLamontFounder|LamontDigitalSystems(CampusTelevideo)

MikeMaerzFormerVPInternetProductsDivision|Intel

DavidMahoneyFormerCEO|iMcKessonLLC

LindaMasonChair&Founder|BrightHorizons

GreyMcLeanDirector|AdiuvansFoundation

LisaValoneInvestor&Philanthropist

JimValonePartner|WellingtonManagementCompany,LLP

KentWalkerSeniorVP&GeneralCounsel|Google

SusanWhiteheadInvestor&Philanthropist