Roger Allen Chairman Allen & Buckeridge An Early Stage Venture Capital Company Citizens with vision: The Impact of Social Entrepreneurship World Forum on Measuring and Fostering the Progress of Societies Istanbul June 2007

The Impact of Social Entrepreneurship 1. What do we mean by Social Entrepreneurship and Social Venture Capital?  Supporting the building of typically not-for-profit enterprises and following them though all stages of growth. Every enterprise we back has the full weight of our intellectual capital behind it, adding value and offering guidance through good times and bad.  Combining foremost early stage company-building experience of investing in enterprises where the return on capital is a social dividend outcome, focused on delivering performance at every stage.

The Impact of Social Entrepreneurship 2. Differences between traditional philanthropy and Social Venture Capital TraditionalSocial Venture Capital  Low level of involvement  High level of engagement  Passive  Hyper active  No board seat  Several board seats  Executive Director  More like charity type of board  CEO  More like corporate type of board  Program funding  Whole of enterprise funding  Short term funding  Average < 1yr  Long term – milestone (5yrs +)  Multiple rounds of funding against performance milestone  Little or no funding for building management or enterprise infra- structure  Focus on building management team and organisation capacity: - Governance - Skills base - Systems

The Impact of Social Entrepreneurship TraditionalSocial Venture Capital  Assumes Tax deductibility  Not necessarily tax deductible  “Commercial” Business model leading to sustainability  More focus on inputs and throughputs  More focus on the measurement of outcomes  Partake in innovative and lateral thinking  Charity  Investment  Grant Making  Possible capital return  Social dividend  Leverage other contributions, partnerships 2. Differences between traditional philanthropy and Social Venture Capital cont.

The Impact of Social Entrepreneurship 3. Case Studies Public Research Early Stage ExpansionDevelopmentPublic Markets Abbotsford Convent (Melbourne, Australia)  Rescuing a major ex-Convent site from the hands of a property development  Creating a sustainable and accountable business model  Creation of a vibrant Arts, Hospitality and Education precinct with heavy community involvement

The Impact of Social Entrepreneurship 3. Case Studies cont. Public Research Early Stage ExpansionDevelopmentPublic Markets The Early Stage Funding Gap Royal Children’s Hospital Research Institute (Melbourne, Australia) Possum  Turning pro-bono consulting into a world leading medical product  Dissemination of critical medical knowledge worldwide  Creation of a sustainable business model

The Impact of Social Entrepreneurship 3. Case Studies cont. Public Research Early Stage ExpansionDevelopmentPublic Markets Televentures (Sydney, Australia)  Creating employment for unemployed people with disabilities  Overcoming prejudices in the workplace  Real business versus noblesse oblige mindset

The Impact of Social Entrepreneurship 3. Case Studies cont. Public Research Early Stage ExpansionDevelopmentPublic Markets The Early Stage Funding Gap GetUp (Sydney, Australia)  Using the latest online tools to empower grassroots participation in the democratic process  Creating new independent political movement to help build a progressive Australia  Seed capital and a sustainable business model