APS 1015 Class 12 - SE Issues
- 1. APS 1015: Social Entrepreneurship Class 12: Social Entrepreneurship Monday, November 25th 2013 Instructor: Norm Tasevski (norm@socialentrepreneurship.ca) Assaf Weisz (assaf@socialentrepreneurship.ca) 1
- 2. © Norm Tasevski & Assaf Weisz Agenda • • • • • • Notes on the individual assignment & final project Emerging Issues Investor’s Chair exercise Break Group Work Evaluations 2
- 3. © Norm Tasevski & Assaf Weisz Presentation guidelines • Due Dates – Investment Pitch: Midnight on Saturday, November 30th • Format – PowerPoint deck • Time Allotment – 12 min presentation (strict) – will give you 5 and 2 minute warnings – 6 min Q&A • Grading – To be done by Alex and Norm – Judges will inform me, but not assign your grades • Feedback from Judges – Norm will email his and judges’ feedback shortly after the class to integrate into angel investor pitch 3
- 4. © Norm Tasevski & Assaf Weisz Timing • Arrive by 5:00pm!! • Group order will be assigned on the Sunday prior to the presentation • At the end of the pitches, the judges will deliberate (for 10 minutes) • Judges will then provide feedback to the entire class (and I will provide individual group feedback) 4
- 6. © Norm Tasevski & Assaf Weisz A Growing Ecosystem 6
- 7. © Norm Tasevski & Assaf Weisz Major Trends • Charity is changing • Social entrepreneurship is in vogue • Capital is accumulating 7
- 8. © Norm Tasevski & Assaf Weisz Charity is Changing 8
- 9. © Norm Tasevski & Assaf Weisz SE is in vogue • Dozens of classes added to Canadian universities • Hundreds of students taking them 9
- 10. © Norm Tasevski & Assaf Weisz Capital is Accumulating 10M private equity: water, clean tech, employment 50M private equity: sustainable agriculture & clean tech 30M private equity: green consumer foods 100M debt & grants: global health 25k debt: multi-sector, idea stage 10
- 11. © Norm Tasevski & Assaf Weisz Capital is Accumulating Listing platform: 10 ventures & funds currently listed 4M SE ‘strategy’ 50-350k debt for charities & nonprofits 11
- 12. © Norm Tasevski & Assaf Weisz Major Problems • Dealflow is desperately lacking! • Measurement systems aren’t in place • Advisors & institutional investors don’t have the right incentives 12
- 13. © Norm Tasevski & Assaf Weisz In the Investor’s Chair 13
- 14. © Norm Tasevski & Assaf Weisz • Albert – 160 into xrays • Monica – 100 into website, 160 into x ray, 250 into diabetes • Talha – 120 in diabetes • Jovan – 120 in xrays • Canay – 100 in website, 60 in x ray, 30 in diabetes • Gayan – 100 in xrays, 120 – team • Trevor – 20 into xray, 160 14
- 15. © Norm Tasevski & Assaf Weisz Exercise Which business would you invest in? • Split into 4 teams • Each person has $100,000 to distribute 15
- 16. © Norm Tasevski & Assaf Weisz 5 years later… • Global health company: valued at 20M • Diabetes company: acquired for 7M • Green marketplace: out of business 16
- 17. © Norm Tasevski & Assaf Weisz Elements Important to the “Social Investor” • Overview and mission • Management and Advisors • Problem – social issue being addressed • Size of the problem – how big is the social issue • Business model • Competitive advantage • Collaboration/ partnerships • Marketing and Sales • Financial projections • Financial requirements • Solution – Here’s how it works… • Value proposition – Inc. social benefit 17
- 18. © Norm Tasevski & Assaf Weisz Advice for your pitches • Focus on the key components of the business model, and highlight the key financial #s – Can you clearly explain how your business works? How it makes money? How it generates social/environmental change? • Comfortably stick to the time allotment – In your practice, aim to deliver your presentation in 10-11 minutes • Anticipate the investor questions – If you were investing your own money into the business, what would you care to know about the business model? 18
- 19. © Norm Tasevski & Assaf Weisz Class Evaluations • Albert to distribute, collect evals 19