SLUSH Impact Day28.12.2016

Workshop 1 – StartupsJenni Selosmaa, Business Coach

WHAT WILL YOU ACHIEVE TODAY?

1. Impact model for communicating your impact intentions

2. Impact business model for communicating your value creation process to your customers and investors

IMPACT ECOSYSTEM IN FINLAND

PERSON & IDEA

ADVANCED IMPACT

ENTERPRISES

INV.READY IMPACT

ENTERPRISES

EARLY-STAGE IMPACT

ENTERPRISE

IMPACT ANGELSFINNISH

FOUNDATIONS FINNISH MUNICIPALITIES

ENTREPRENEURSHIP SOCIETIES & INNOVATION

COMPETITIONS ACCELERATORS

IMPACT FUNDS AND OTHER NEW INSTRUMENTS??

GOV’T ORG’S

WHAT IS IMPACT INVESTING?

1. Investing with the target of having social or environmental impact in addition to a financial return

2. Setting targets for a. social / env. impact b. financial returns

3. Measuring how well set targets are met

3D INVESTING

RISK

RETURN

IMPACT

In the ideal case, impact correlates with increased financial returns.

IMPACT ENTERPRISES

GOVERNMENTAL & NGO’SSOCIAL ENTREPRENEURSHIP

SHARED VALUE CREATION

IMPACT GRID MODEL*

*Source: Richard von Kaufmann

More

prof

it-dr

iven

More purpose-driven

IMPACT ENTERPRISES

GOVERNMENTAL & NGO’SSOCIAL ENTREPRENEURSHIP

SHARED VALUE CREATION

IMPACT GRID MODEL*

*Source: Richard von Kaufmann

More

prof

it-dr

iven

More purpose-driven

Profit sought while carefully considering benefits to society in relation to core businessE.g. Patagonia, Ben & Jerry’s, Kickstarter

Profit as means for leverage and longevity E.g. SolarNow

Supporting entrepreneurial activities aimed at improving the welfare & livelihoods of communities in need (as opposed to meeting pressing immediate needs through charity in short term)E.g. Unicef Innovation Fund

Entrepreneurship used to solve social challenges – self-sustaining but not profit-generatingE.g. Kiva.org

IMPACT MODELLING

Impact model

● defines long-term goals and then

● maps backward to identify necessary preconditions

EXAMPLE: IMPACT MODEL

SOURCE: Making Sense of Social Impact: Acumen’s Building Blocks for Impact Analysis course on NovoEd https://novoed.com/social-impact-2016-1

FIRST: Define your target customer or beneficiary

● What unit makes most sense to work with? E.g. individual, household, classroom, community

● What is your geographical target area?

● What is the change you want to see in the world? ● What problem are you solving?● What is the long-term effect that can be attributed to

your product or service

-> Focus on setting up the impact target

IMPACT = LONG-TERM GOAL

HOW DO YOU STRUCTURE AN IMPACT ENTERPRISE?

● Usually beneficiary ≠ customer: this means that the one who benefits is not necessarily the one who pays

● Being able to quantify your impact means you are able to build it into your business model

EXAMPLES OF FINNISH IMPACT ENTERPRISES

EXAMPLES OF IMPACT BUSINESS MODELS

● Low-cost quality eye care to eradicate blindness & grow economic productivity

● “Pay according to your abilities”: 2/3 of poorest customers do not pay, the affluent do

● “McDonald’s model”: highly replicable & standardized

● Mobile learning service www.funzi.mobi to enable everyone to learn practical skills to improve their lives for free

● Finding value in & commercia- lizing learning outcomes ○ 3rd parties purchase

learning outcomes of a certain target population

○ End users can purchase certificates

EXAMPLE OF ARAVIND’S IMPACT BUSINESS MODEL

FOR MORE BUSINESS DEVELOPMENT HELP:

FOR MORE INFORMATION

● Global Impact Investing Network: 2016 Annual Impact Investor Survey

● Männistö, Harri ( 2016) Vaikuttavuusinvestoimisen opas sijoittajille. Sitran selvityksiä 120 (in Finnish)

● Impact Investment: The Invisible Heart of Markets (2014) Report of the Social Impact Investment Taskforce

● Toniic (2016) Millennials & Impact Investment ● Social Finance (about Social Impact Bonds)

Follow us

@ImpactorConsulting

@Impactor_fi

www.impactor.fi

jenni.selosmaa@impactor.fi