International Summer

Class Schedule

Student Learning Outcomes

JULY · 2 - 4 · COURSE 2020

Innovative Financing (IF) is an approach to funding enterprises and

interventions that create positive social and environmental impact.

It looks to use all available financial and philanthropic tools to

support the growth of these enterprises and, when the existing

tools don’t work, it promptly creates new ones. Impact Investing,

Venture Philanthropy and Blended Finance are all forms of IF. This

course aims to give students an overview of the Innovative Finance

space by examining the evolving roles of stakeholders, including

investors, foundations, high net worth individuals, governments,

corporates, communities, non-profits, social enterprises and social

entrepreneurs, in developing and applying new financial vehicles

and structures to allocate capital in a way that includes

measurement of social and environmental impact.

As a result of this course students will be able to:1. Explain and discuss innovative finance practices to enable

engagement with investors, foundations, development finance

organizations, government and civil society approaches towards

creating social and environmental impact.

2. Design, select and apply appropriate and creative approaches,

solution, services, processes or technologies to complex social

and environmental problems

3. Apply transformative perspectives in conceptualizing, designing

and implementing solutions that aim to address complex social

challenges.

4. Demonstrate the development of concepts, mindsets, skills, and

relationships that will enable them to engage and evolve as active

innovative financiers throughout their careers, regardless of

position or sector

July 2 | 05:30 pm - 09:30 pm

July 3 - 4 | 09:00 am - 12:00 pm & 01:30 pm - 05:30 pm

Aunnie Patton

Innovative Finance

aunnie@intellimpact.com

Innovative Finance

GRADES ARE BASED ON A SCALE FROM · 0 TO 5 POINTS ·

Policy on Incompletes: An Incomplete grade is not an option that you can select because you find that you weren't

able to get everything done. The purpose of an incomplete is to provide a reasonable time extension for a student

who cannot complete the course requirements by the usual time because of some bona fide emergency (an illness

requiring hospitalization, etc.). Incompletes are generally unproductive for both the student and the instructor.

They should be avoided if at all possible

Extra Credit: Extra credit is not available in this course.

ASSIGNMENT/GRADING ITEM DUE DATE PERCENTAGE

Policies and Requirements

Grading

Attendace: This course has interactive and participatory aspects

and contain both individual and group applications. Your presence,

involvement, and contributions are regarded as an essential part of

your creative learning and as equally essential to the learning of

others. Attendance, preparation, and participation are expected and

are included in your final evaluation.

Quiz: Students will need to complete a test on investment

structures. This will be distributed in class on the 4th.

Paper: Your paper is designed to help you analyze and reflect your

opinion and findings on innovative financing. Your paper should

draw on sources from the reading list and external research.

Paper is due on June 17 (start your paper early!). It should be 6-7

page double-spaced paper. The 6-7 pages in the paper do not

include the cover page and reference section. Your paper should

be sent to the assistant professor electronically. Please submit a

Microsoft Word version of your paper. Please use the following

naming conversion to label your file, last name CRS 559 paper

(e.g., Smith CRS 559 paper).

Students in this course will be evaluated based on their

performance on the following components: Attendance, Quiz and

Paper.

Structures Quiz

Final Paper

July 4

July 17

20%

80%

Example: Assignments are due when allocated, regardless of your

presence or absence. It is your responsibility to meet this deadline.

For a successful experience in this class, please pay careful attention

to your planning and accountability regarding assignments.

Expected Online Room Behavior

· Participating in class activities

· Respecting the diversity of cultures, opinions, viewpoints in

the classroom

· Listening to fellow students, professors, and lecturers with respect

· Prepared for class

Innovative Finance

Academic Misconduct Policy

Certain student behavior will result in the lowering of the course

grade by at least one point level. These behaviors include, but are

not limited to:

- Intentional disruption, obstruction, or interference with the process

of instruction

- Dishonesty, including cheating, knowingly furnishing false

information, or plagiarism

Plagiarism: According to APA's publication manual (1994),

"Quotation marks should be used to indicate the exact words of

another" (p. 292) "Each time a source is paraphrased, a credit for

the source needs to be included in the text." (p. 294) The key here

is not to present the work of another as being your own. Otherwise,

it is considered plagiarism.

By accepting this contract, students agree that papers may be

submitted to a plagiarism detection software. Papers will only be

submitted if there exists a suspicion of plagiarism. Students may

receive a zero for a written assignment if plagiarism is identified.

Course Syllabus

Innovative Finance

Introduction & Definition of Innovative Finance and Impact Measurement

· Innovative Financing (IF) is an approach to funding enterprises and interventions that create positive social

and environmental impact. It looks to use all available financial and philanthropic tools to support the

growth of these enterprises and, when the existing tools don’t work, it promptly creates new ones. Impact

Investing, Venture Philanthropy and Blended Finance are all forms of IF. This first session introduces the

concept and theory behind IF and where it fits on the new investment continuum. This session will also look

at what the current state of the market is worldwide. This session will also focus on the Impact Measurement

frameworks inherent in IF. It will focus on impact measurement from the investor level and from the

organizational level. We will look at some of the issues around impact measurement and the current

discourse in the space.

- Required viewing: Why do we innovate? (8:27) -

What is Impact? (7:30)

Different Types of Funders (6:05)

Information on Funders (2:14)

Theory of Change (4:58)

Measuring your social impact – Theory of Change (2:25)

- Required Reading:· Bertha Centre. (2016). Innovative finance in Africa: Review. Pages 4 – 7 Bertha Centre for Social Innovation

& Entrepreneurship, Graduate School of Business, University of Cape Town. Retrieved from

http://www.gsb.uct.ac.za/Downloads/InnovativeFinanceAfrica_1.pdf

· Vanderwal, P., (2018). The ABCs of Innovative Finance. Stratigos.

· Schiff, H., Bass, R. & Cohen, A. (2016). The business value of impact measurement. GIIN

· Dichter, S., Adams, T. & Ebrahim, A. (2016). The Power of Lean Data. Stanford Social Innovation Review.

Retrieved from: https://ssir.org/articles/entry/the_power_of_lean_data

JULY 2

Course Syllabus

Innovative Finance

JULY 2

Innovative Resourcing & Alternative Early Stage Financing

· In the first part of this session, we are going to focus on the resources that can be utilized by entrepreneurs

and funders to achieve social and environmental outcomes. The primary goal of this session is to get students

to think creatively about their assets, revenue streams and funding sources. The class will work to create

strategies using these categories for several cases of non-profits, social enterprises, governments,

development organizations and investment funds, which they will bring to class.

· In the second part of the session, we will focus on alternative early stage structures from impact-linked loans to

demand dividends. This represents a whole set of innovative structures between equity and debt that can be

customised to fit entrepreneurs needs. These structures have a brand new approach to addressing issues

around founder ownership, funder impact preferences, affordability of capital, exits and more.

- Required viewing:Introduction to Week 3 (1:24)

Identifying Revenue Streams – Part 1 (3:23)

Identifying Revenue Streams – Part 2 (7:36)

Outcomes based contracting (6:50)

Monetizing assets (12:09)

Risk / Return / Impact (4:58)

Real and perceived risk (3:56)

Impact Risk (3:39)

Early Stage Risk & Scalability Risk (5:01)

Manager Risk (2:38)

Liquidity Risk & Exit Risk (4:01)

- Required Reading:· Roots of Impact, 2019. Accelerating Impact Linked Finance.

· Rayner, C. 2017. Risk & Funding Structures. University of Cape Town.

· Use resources from Government Outcomes Lab at the University of Oxford for Outcomes Based

Contracting: https://golab.bsg.ox.ac.uk/

· Benink, E., Winters, R. New perspectives on financing small cap SME’s in emerging markets: the case for

mezzanine finance (2016). Dutch Good Growth Fund.

· Ben-Ami, A. Square peg, Round Hole: Innovating Finance for Social Enterprises (2018). Medium.

· Gianoncelli, A. and Boiardi, P., (2017), “Financing for Social Impact– The Key Role of Tailored Financing and

Hybrid Finance”. EVPA.

· Armeni, A., and Ferreyra De Bone, M., (2017), “Innovations in Financing Structures for Impact Enterprises:

Spotlight on Latin America”. OMIN, Rockefeller Foundation, Transform Finance.

JULY 3

Course Syllabus

Innovative Finance

Innovative Capital Stacking

· This day will begin with a quiz on alternative funding structures.

· For the rest of the session, we will walk through the full spectrum of options for catalytic capital including

guarantees, first loss capital, outcomes payments, convertible grants and loans, syndication, technical

assistance, evergreen funds, impact carry, advanced market commitments and more. These tools can be

used effectively to increase access to funding, decrease costs of capital and incentivize impact through

de-risking, crowding in, reducing borrowing costs and tying impact to capital allocation.

· This will include two group activities.

- Required Reading:· Sarona Case Study. Convergence. 2016.

· A Resource for Structuring Blended Finance Vehicles. GIIN. 2018.

· UK Cabinet Office (2013) Achieving social impact at scale: case studies of seven pioneering

co-mingling social investment funds.

· Bridges Ventures. Shifting the Lens: A De Risking Toolkit (Rep.). Retrieved from:

http://www.trilincglobal.com/wp-content/uploads/2014/01/BV_BoA_de-risking_report_FINAL-2.pdf

· Tideline. (2019). Catalytic Capital – Unlocking More Investing and Impact. Retrieved from:

https://tideline.com/wp-content/uploads/Tideline_Catalytic-Capital_Unlocking-More-Investment-and-I

mpact_March-2019.pdf\

JULY 4

READINGS: CREATING BRANDS PEOPLE LOVE - BRIAN TILL & DONNA HECKLER