Impact Investing Conference, August 2014

Transcription

1 Impact Investing Conference, August

2 - About ANDE - Trends in the SGB Global Sector - The Brazil Impact Investing Sector 2

3 ANDE 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. 3

4 ANDE Membership: An SGB Ecosystem Academic Institutions 6% DFIs and Donor Agencies 4% Foundations 9% Research and Advisory Service Providers 9% Capacity Development Providers 33% Corporations and Corporate Foundations 10% Investors 29% 4

5 ANDE Members - Global Reach 32% 17% Regional Chapter Headquartered in the region Engaged in the region 36% 51% 65% 13% 72% 12% 36% 1% 59% 6% 11% Source: ANDE Member Database, as of 4/3/2014 5

6 ANDE members in Brazil 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 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 6

7 ANDE Activities 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 7

8 - About ANDE - Trends in the SGB Global Sector - The Brazil Impact Investing Sector 8

9 ANDE study 9

10 Decade of Growth for SGB Intermediaries 85% of Investment Vehicles founded in past decade 50% of Capacity Development Providers founded in past decade* 160 Number of Investment Vehicles Launched 15 Number of ANDE Member CD orgs Founded Source: ANDE Research *ANDE members only 10

11 Number of Vehicles USD Millions Fewer Funds, Larger Target Sizes Vehicles Launched (n=262) Median Target AUM (millions USD) (n=167) $80 $70 $60 $50 $40 $30 $20 $10 $- 11

12 Regional Focus: More Global Funds 100% 80% 34% 27% Sub-Saharan Africa 60% 40% 20% 16% 8% 16% 15% 13% 8% 16% 24% South Asia MENA Latin America & Caribbean Global & Multi-Region Europe & Central Asia East Asia & Pacific 0% 4% 6% 5% 6% (n=97) (n=144) Source: ANDE Research 12

13 Number of Investment Vehicles Continue to See Low Focus on Seed Stage Median deal size $500,000 Median deal size $1,000, Median deal size $150,000 0 Seed Start-up Early Growth Mature Source: ANDE Research Target Stage N = 223; 100 Investment Vehicles selected more than one stage 13

14 Percentage of Vehicles But Newer Vehicles Shifting That Trend 100% % 60% Mature Expansion/Growth 40% Early Start-up 20% Seed 0% (n=41) (n=66) Inception Year Source: ANDE Research N = 149; Only investment vehicles that reported both inception year and stage (n=52) 14

15 Inception Year Easier to Raise Funds than to Deploy Proportion of Committed Capital that Has Been Deployed 2012 (n=3) 13% 2011 (n=10) 39% 2010 (n=2) 51% 2009 (n=4) 48% Source: ANDE Research N=19, closed-end funds that reported inception year, committed capital, and total capital deployed to date 15

16 Brazil 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 16

17 - About ANDE - Trends in the SGB Global Sector - The Brazil Impact Investing Sector 17

18 Brazil Impact Investing Study 18

19 Brazil Impact Investing Study Study criteria: 19

20 Brazil Impact Investing Study 22 investors participated in the study 20 already making investments 2 planning to start in international 10 national 20

21 Brazil Impact Investing Study 21

22 Brazil Impact Investing Study 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 22

23 Brazil Impact Investing Study 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 23

24 Brazil Impact Investing Study 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 24

25 Brazil Impact Investing Study Trends The sector is mainstreaming Improvement on impact measurement Investing on talents and other sector intermediaries (incubators/ accelerators) 25

26 Official Release Brazil Impact Investing Study - Launch Date: August, 29 th Sao Paulo, Brazil - Access to the report: Contact: rebeca.rocha@aspeninst.org 26

27 Obrigada!