YSB Investor Brochure

Yunus Social Business | www.yunussb.com 1

Investing for Social BenefitY U N U S S O C I A L B U S I N E S S I N C U B A T O R F U N D S

2 Investing for Social Benefit: Yunus Social Business Incubator Funds

“A charity dollar has only one life. A Social Business dollar can be invested over and over again.”PROFESSOR MUHAMMAD YUNUS Nobel Peace Prize Laureate and Chairman of Yunus Social Business


A Message from our Chairman and CEO

OVER THE YEARS, I have been creating

a new kind of business, business to

solve human problems, rather than

making personal money. I started calling

them Social Business. Inclusion of this

business into the conceptual framework

of the existing Capitalism would create

the New Capitalism which we are

searching for, a kind that combines the

efficiency of personal-profit-making

businesses with the social goals of

NGOs and philanthropists . To my

mind, the present day money-centric

Capitalism cannot continue. In light

of the financial and many other crises,

we need to rethink the fundamentals

of our economic system, a system that

has failed again and again to address

the basic problems of our world,

such as poverty, inequality, disease,

unemployment, and environmental

degradation.

This is where Social Business comes

in. Whenever I tried to solve a social

problem, I created a business to solve

that problem. I have created many

social businesses in Bangladesh, such as

Grameen Danone, Grameen Veolia, BASF

Grameen, Grameen Shakti, Grameen

Intel, Grameen Green Children Eye Care

Hospital, Grameen Caledonian College

of Nursing, to name a few. They have

proven their effectiveness in solving

pressing problems and have grown on

their own strengths.

The mission of Yunus Social Business

Global Initiatives is to spread this success

to other parts of the world, via the

innovative Incubator Fund concept. We

are confident that Social Business will

become an attractive option for more

and more existing businesses, fund

managers, foundations, bilateral and

multi-lateral development agencies,

social entrepreneurs, governments and

philanthropic investors.

I hope you will be our partner in this

exciting journey towards creating the

foundation of a New Capitalism and

solving pressing human problems.

YUNUS SOCIAL BUSINESS was founded to

bridge the gap between Social Business

entrepreneurs and Social Investors. We

created the Incubator Fund approach

in order to target small to medium

Social Business entrepreneurs so that

they can benefit from access to capital

and business advice in the same way a

normal business start-up would from

a business incubator or venture capital

fund. At the same time, we offer investors

the opportunity to invest in a diversified

and carefully selected portfolio of social

businesses in our target countries. The

Incubator ensures that these businesses

go on to generate maximum social impact.

Yunus Social Business is itself a Social

Business. Our team of professionals — with

experience in consulting, venture capital

and international development — is

driven by the same principles as the social

businesses we invest in. We pursue social

impact first and foremost, but with the

financial prudence of the private sector.

We very much look forward to working

with you to take Social Business around

the world.

MUHAMMAD YUNUSPeace Nobel Laureate and Chairman, Yunus Social Business

SASKIA BRUYSTENCo-Founder and CEO, Yunus Social Business


What is Social Business?A SOCIAL BUSINESS is a company created

for social benefit rather than private

profit. Like an NGO, it has a social

or environmental mission, but like a

business, it generates its own revenues to

cover its costs. Investors may recoup their

initial investment, but all further profits

are reinvested for growth and innovation,

or to seed new social business ventures.

In this way, Social Business introduces an

additional business model to capitalism

where serving society is the sole objective of

the company. Since social businesses have

to compete in the free market to provide

their goods or services, they are efficient

and effective at meeting customer needs.

Over the last 30 years, Professor Yunus

has pioneered more than 60 social

businesses in Bangladesh alone — some

of them are among the largest companies

in the country. Today, the concept is

broadly acknowledged by the UN, EU,

multinational corporations and academic

institutions.

“The private sector has an important role to play. As a primary driver of innovation, investment and job creation, Social Business is well placed to help accelerate progress towards the Millennium Development Goals by the agreed deadline of 2015.”BAN KI MOON, UN Secretary General

1. Goal: To solve social or environmental problems2. Financial and economic sustainability3. Investors repaid; no further private financial return4. Profit funds expansion, improvements or seeding

other social businesses5. Environmentally conscious6. Market wages; better working conditions7. Do it with joy

PRINCIPLES OF SOCIAL

BUSINESS



YSB Incubator Fund ApproachYSB APPLIES business approaches to

the world of social development. It has

developed an innovative Incubator

Fund methodology which bridges the

gap between social businesses and

social investors and donors. While the

Incubator searches, coaches and selects

social businesses, the Fund provides debt

and equity financing to the businesses

after a thorough due diligence process.

While a traditional investor invests for

financial gain, a Social Investor invests

to benefit society. A Social Investor’s

goal is to maximize social return on his

or her investment and is thus motivated

to support the most effective social

businesses. By investing in a Social

Business Incubator Fund, the Social

Investor benefits from standarised annual

and semi-annual reports that detail both

financial and social impact performance.

The Social Investor will recoup up to

the full nominal value of his or her

initial investment. All profits from the

social businesses are committed to be

recycled into new social businesses.

YSB INCUBATOR YSB FUND

SOCIAL BUSINESS

PHILANTHROPIC INVESTORSDONORS

• Search• Advisory• Selection

$ Donated $ Invested

• Equity• Loans

The Fund receives capital from donors and investors. After a thorough due diligence process, the Fund invests this capital into social businesses that have been selected and prepared by the Incubator. As the social businesses pay back the capital, the Fund reinvests it into other social businesses, and/or returns it to philanthropic investors in proportion to their share of the total capital contributed, up to the nominal value of his or her initial investment.

“The Social Business Initiative is the first step, but an important one. The Commission’s guiding objective is to create the right environment for social businesses … to force their growth and development across Europe, to un-tap some of the massive potential that they represent for Europe’s future prosperity.”JOSÉ MANUEL BARROSO, President, European Commission

How it all Works


The IncubatorTHE INCUBATOR is responsible for

searching and creating social business

opportunities and helping the social

businesses develop a strong and

coherent business plan. It also provides

coaching and capacity building to social

business entrepreneurs, allowing access

to useful networks that help them

expand their businesses.

1. Searching and Creating Social Business Opportunities

YSB receives hundreds of social business

plans on an annual basis. The Incubator

is responsible for screening the plans

and moving forward with a handful that

demonstrate the highest potential. In order

to attract entrepreneurs, the Incubator

holds Social Business Plan competitions,

public events and workshops.

2. Developing Social Business PlansOnce pre-selected, the Incubator

works with the business to improve the

social business plan and prepare the

business for investment. At this stage,

the Incubator will focus on whether

the social business will be financially

self-sustainable and determine how to

maximize its social impact.

3. Training, Coaching and Capacity BuildingPre- and post-investment, the Incubator

continuously seeks to broaden

the skill sets and capabilities of its

entrepreneurs. This includes personal

coaching and courses on topics such

as business accounting or technical

industry-specific topics. The Incubator

is supported by a network of corporate

pro-bono partners.

4. NetworksThe Incubator provides access to its local

and international networks of potential

buyers, partners and experts that lend

support to the social businesses.

“Social Business is a powerful concept at the intersection of the social and business realms. The objective is to apply the professionalism and efficiency of the business world to

solving the world’s most pressing social problems. And to do so in a self-sustaining way, providing for choice and personal

responsibility for those who benefit from it.”ULRICH VILLIS, European Leader, Social Impact Practice, Boston Consulting Group


The FundTHE FUND pools capital from donors and

social investors and invests this into a

diversified portfolio of social businesses.

Types of Donors or Social Investors• Corporations

• FoundationsandNGOs

• Governmentsand

development agencies

• Highnetworthindividuals

DonorsDonor contributions are used as capital

for investment in social businesses and

for incubation services. Donated capital

contributions are recycled within the

Incubator Fund once they have been paid

back by the initial investee social businesses.

Additional contributions specifically

earmarked for incubation services are

also accepted; these are used to increase

the amount of support that the Incubator

is able to give to target and investee social

businesses. In all cases, the donor will

receive a certificate which (depending

on the donor’s circumstances) may

make the donor eligible for a tax refund.

Social InvestorsA patient capital investment in the Fund

will be for a period of approximately

10 years. Funds are provided by social

investors in the form of interest-free

loans. Such funds will usually be invested

into 5 to 10 different social businesses

within a period of 12 to 18 months. First

repayments from investee companies are

expected starting from year 3 onwards and

will be distributed back to social investors.

It is expected that any social investor

loan will be fully repaid within 10 years.

Incubation Services Fee (ISF)The Fund draws an annual management

fee of 6 percent on contributed capital

to support social businesses to fund

the intensive business support services

offered by the local Incubator Fund to

the entrepreneurs. These can include

business plan advisory, legal and

accounting support and loan structuring.

“Social Business creates a common platform for the public sector, the private sector and NGOs to work together on the resolution of social problems … This demilitarized zone allows collaboration modes, creativity and a co-creation of solutions which no other modality allows.”EMMANUEL FABER, Co-COO and Vice-Chairman, Danone Group


Investor Reporting and Impact Measurement

Three Pillars of Impact Measurement at YSB

INVESTORS AND DONORS in our Incubator Funds will receive standarised reporting throughout the year.

FOCUS 1. Individual Social Business

Outcome Indicators Stakeholder Survey Entrepreneurial Survey

2. Social Business Sector 3. Social Business Concept

To measure the output

and outcomes in the

community directly

impacted by the business.

To aggregate across certain

stakeholder groups the

perceived impact resulting

from our social businesses.

To understand the perceived

impact of the Social Business

model from all social

business entrepreneurs.

Monthly, quarterly and

annual self-reporting

from entrepreneurs on

quantitative KPIs such as

number of students, income

generation, etc.

Paper-based and online

surveys on perceived impact

for key stakeholders such

as students, community

leaders, etc.

Annual self-reporting from

entrepreneurs on awareness

of the social problem,

business success, idea

adoption, etc.

APPROACH

GOAL

HOW

Our entrepreneurs adhere to the following reporting standards:• Monthly:FocusonfinancialKPIs

• Quarterly:Focusonfinancialand

social KPIs

• Annually:Focusonfinancialandsocial

KPIs as well as budget setting

The information from the entrepreneurs allows us to prepare two reports to our investors every year:• Semi-annualupdate

• Detailedannualreport

Our TeamMUHAMMAD YUNUSPeace Nobel Laureate and Chairman, Yunus Social Business

ROGERIO OLIVEIRACountry Director, Brazil

SASKIA BRUYSTENCEO and Co-Founder

CLAUDINE FRANCOISCountry Director, Haiti

SOPHIE EISENMANNCFO and Co-Founder

SHKELZEN MARKUCountry Director, Albania

FARES MABROUKCountry Director, Tunisia

SYLVAIN FERRIEREProgram Director, Tunisia and Uganda


KAREN HITSCHKEDirector, Funds and

Investments

DANIEL NOWACKProgram Director, Albania


PROFESSOR MUHAMMAD YUNUS, CHAIRMAN: Pioneer of both

Microfinance and Social Business, Professor Yunus

founded the Grameen Bank in Bangladesh in 1983, which

now boasts more than 8.4 million mostly female borrowers.

Professor Yunus has founded more than 60 social

businesses in Bangladesh alone, some in collaboration

with international corporations such as Danone, Veolia,

Intel, Uniqlo and BASF. Other successful social businesses

include Grameen Shakti, Grameen Caledonian Nursing

College and Grameen Green Children Eye Care Hospital.

He works tirelessly to advance the Social Business

Movement across the world.

SASKIA BRUYSTEN, CEO AND CO-FOUNDER: A leader in the Social

Business Movement, Saskia was Co-CEO of Grameen

Creative Lab prior to founding YSB. She started her career

at the Boston Consulting Group in Munich and New York.

She was appointed to the EU Commission’s expert group

on Social Business and has assisted Professor Yunus on UN

Secretary General Ban Ki-Moon’s MDG Advocacy Group.

She holds an MBA from the European Business School,

Germany and a MSc in International Relations from the

London School of Economics.

SOPHIE EISENMANN, CFO AND CO-FOUNDER: An expert at

creating Social Business Funds and executing investments

into social businesses, Sophie was the Director of the

Grameen Creative Lab for which she was responsible

for setting up country initiatives in Haiti, Colombia

and Albania. Previously, Sophie worked for Siemens

Management Consulting in Munich as well as GE Capital in

London, Amsterdam and Munich. She holds an MBA from

the European Business School, Germany and a MBA in

International Business from INSEAD.

DANIEL NOWACK, PROGRAM DIRECTOR, ALBANIA: Daniel is

responsible for heading YSB’s activities in Albania. Prior

to YSB, Daniel served as Finance Director for a startup

incubator. Before that, he was Project Manager at the

Grameen Creative Lab, where he oversaw partnerships with

corporations and non-profit organizations. Daniel started

his career at Merck & Co. as Senior Financial Analyst for

Europe and Emerging Markets. He holds a Diploma from

University of Cooperative Studies Stuttgart and a Bachelor

from Glamorgan Business School, Wales.

KAREN HITSCHKE, DIRECTOR, FUNDS AND INVESTMENTS: Karen

has extensive expertise and experience in fund structuring,

investment processes and fundraising. Prior to YSB, she

was the Chief Financial Officer at Affectis AG and an

advisor to B-to-V (Business Angel Network) in Switzerland.

Before that, Karen was an Investment Manager at Apax

Partners and a consultant at McKinsey & Co. She holds an

MBA from INSEAD, Fontainebleau, and a M.Sc. in Biology

from the University of Constance.

CLAUDINE FRANCOIS, COUNTRY DIRECTOR, HAITI: Claudine

was born in Haiti. She holds a degree in Business

Administration and Accounting, with experience working

and living in the US, Africa and Haiti. Prior to YSB, she

was a senior accounting professional with demonstrated

expertise in General Accounting, Internal Audit, Budgeting

and Human Resources Management functions. She served

in different private sector and humanitarian clusters in

Haiti with 18 years of experience collaborating with senior

management and conducting Human Resources strategic

planning in order to support and further corporate goals.

SHKELZEN MARKU, COUNTRY DIRECTOR, ALBANIA: Shkelzen

heads YSB’s activities in Albania. Prior to YSB, Shkelzen

was Executive Director of the Mountain area Development

Agency (MADA). He also worked as a Director General of

Agriculture and Rural Development Policies in the Ministry

of Agriculture in Albania. He is a co-founder and president

of the Partnership for Development Foundation, and a

visiting professor at the Economic and Agribusiness Faculty

of the Agriculture University of Tirana and the Economic

Faculty of the European University of Tirana.

FARES MABROUK, COUNTRY DIRECTOR, TUNISIA: Fares is responsible

for YSB’s operations in Tunisia. Prior to joining YSB, Fares

worked at the Arab Policy Institute, a Tunis-based think tank,

dedicated to the development and promotion of innovative

policy solutions and reforms. Fares previously ran a number

of SMEs based in North Africa, focused on mobile banking

and oil logistics. Fares is a visiting professor at Sciences-Po

Paris. In 2010, he was selected as a Yale World Fellow. He

obtained a Masters Degree in Public Administration from

Harvard Kennedy School. Prior to that, he graduated in

Economics and Statistics from the Ecole Nationale de la

Statistique et de l’administration Economique, Paris.

SYLVAIN FERRIERE, PROGRAM DIRECTOR, TUNISIA AND UGANDA: Sylvain is responsible for heading YSB’s activities in Africa.

Prior to YSB, Sylvain worked in Argentina for Endeavor,

an NGO dedicated to identifying and supporting high-

impact entrepreneurs, as a consultant, and then as General

Manager of one of the Endeavor entrepreneurs, a fashion

design business. Previously, he was a consultant for the

Boston Consulting Group in Paris. Sylvain holds a M.Sc.

in Mathematics form Imperial College in London and an

M.Sc. in Management from HEC in Paris.

ROGERIO OLIVEIRA, COUNTRY DIRECTOR, BRAZIL: Rogério has

12 years of experience leading teams in areas of product

development, business units implementation and enterprise

start-ups within companies such as Warner Bros, Johnson

& Johnson, Nestle, UOL and BRMALLS. He is the founder of

Movimento Buena Onda — an accelerator for social businesses

focused on creating happiness, social or environmental

impact. Rogério holds an MBA from HEC Montreal and

teaches at Perestroika, a Brazilian innovation school.


How to InvestARE YOU INTERESTED in supporting

YSB Incubator Funds as an Investor

or a Donor?

Youcansupportusby:

• Investinginoneofourcountry

funds or in our umbrella organization

in Germany

• Supportthroughcapacitybuilding

We can provide you with further

information for each of our country

specific Incubator Funds and our

worldwide activities.

Our Contact Information:Please contact us at

[email protected].

Yunus Social Business Global Initiatives

Niddastraße 63

60329 Frankfurt, Germany

Tel:+496990559030

YUNUS SOCIAL BUSINESS searches, develops and invests

in high-impact social businesses through its own Incubator Funds.

YUNUS SOCIAL BUSINESS GLOBAL INITIATIVES Niddastraße 63 60329 Frankfurt, Germany

email: [email protected] web: www.yunussb.com tel: +49 69 90559030

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