DEVELOPING A STRATEGY TO OBTAIN FUNDINGGarima, Sia, Jaume, Ricardo

AGENDA

1. The situation2. The problem3. Our approach4. Sostre Cívic5. Society6. Our proposal7. Funding entities8. Venture philanthropy9. Grants10. European Social Loans11. Timeframe

1.THE SITUATION

Sostre Cívic needs funding in order to complete the budget for the implementation phase.

Total amount: € 350.000

2.THE PROBLEM

Sostre Cívic lacks a clear Value Proposition Social and Economic Value creation are not clear.

Not enough Social awareness around the cause The cause has to be backed by strong support in

order to raise awareness towards possible funders.

Looking for funding for an unproved model As Sostre Cívic is still in it’s implementation stage

there is no tangible proof of success.

3.OUR APPROACH

Sostre Cívic

Society

Funding Entities

Social Value

Social and Economic Value

Influence from the society will bring investors

3.OUR APPROACH

Three levels of implementation of the model:

Internal 1 Sostre Civic inspiring itself from best practices

worldwide and becoming more attractive to investors.

Externally2 Sostre Cívic establishing an ecosystem to raise

awareness and spread the social cause.3 Tailoring the message to the different funding

sources.

4.SOSTRE CÍVIC

A new non-speculative model in Spain Model used successfully in other countries (ex: Denmark,

Netherland) Inspiration from innovative solutions - straw bale

construction Investment recovery period is shorter (5-7 years)

Denmark NetherlandsDenmark

4.SOSTRE CÍVIC

Model adapted to Spain’s reality High rent prices and empty houses generate the

perfect opportunity to adopt MCU housing. No need to build, just refurbish the dwellings.

Make the model more participative to foster the sense of community, thus increasing the social value Creating events to raise awareness for the cause can

strengthen the community (inside and outside). Creation of a forum on Sostre Cívic’s website making it

more interactive. Involvement in social media.

4.SOSTRE CÍVIC Social Impact and SROI It’s very important for Sostre Cívic to be able to measure

their SROI because this would be a good internal indicator of performance as well as an external proof of the model’s success.

SROI should be calculated for the four areas of impact

5.SOCIETY

Explain the Cause Create a trend Raise awareness on Social Value generated Present Sostre Cívic as a solution for a crucial

economic problem in Spanish society (crisis, real estate bubble, etc…)

Measure the environmental impact of Sostre Cívic

This will end up in the creation of an ecosystem around Sostre Cívic, which will lead to : increased awareness on the cause, the creation of a social movement, the expansion of the network and access to residual funding.

6.OUR PROPOSAL

Be present online, on the media and on social networks Be present on search engines Advantage of being cheap and fast spreading Create a group and interact with users Share content and explain all benefits of MCU housing Create an online network of partners Gain exposure on newspapers or television

Identify potential targets Go to universities and social centers Scale the cause to scale the solution Demand should be overwhelming for Sostre Cívic once the social

trend is in place

Leverage on what you have Ashoka brand Existing community

6.OUR PROPOSAL

Through these platforms Sostre Cívic can reach funding outside their network, expand their network and raise awareness for their cause.

Spanish crowd funding platform that aims to develop social projects

Crowd funding website enabling social entrepreneurs and social ventures to raise funds and build a crowd of supporters. Funding types from donation/goodies, pre-sales/perks and P2P Lending

Through existing platforms:

Crowd funding platform for social projects. Connects social entrepreneurs with people who want to help.

6.OUR PROPOSAL

Having a Sostre Cívic funding platform:

Recommendations:

Requests for funding should be done by project to create an emotional connection between the investor and project.

This funding channel is not short-term as it will take time to put in place a strong ecosystem.

With a widget on their website, Sostre Cívic can leverage on their existing network to collect more funds.

7.FUNDING ENTITIES

We identified three different funding options: Venture Philanthropy Grants European Social Loans

More than just stating the solutions we found, we believe it is important for Sostre Cívic to tailor its approach to the different funding entities in order to obtain funding.

8.VENTURE PHILANTHROPY

Phase focused focus on the scale-up phase of already well

implemented social enterprises Geographically focused

Only projects in emerging countries or in home country

An underdeveloped sector in Spain

Main issues in raising funds through VP for Sostre Cívic

8.VENTURE PHILANTHROPY

What are Venture Philanthropist looking for?

Credibility of the Social Enterprise Background of the founder, his commitment and

motivations Clear social impact of the Social Enterprise

Area of social impact, quantification of the impact Satisfaction of a demonstrated demand by the SE

Showing that there is an unfulfilled gap Helping youth or children

Importance of helping the ones who will shape the future VPs have a long-term orientation

8.VENTURE PHILANTHROPY

How to make Sostre Cívic more attractive to Venture Philanthropy?

Credibility Ashoka Fellow (already done) Social Impact define clear measures of

SROI Demonstrated Demand increase the

number of expectant members (will be a natural consequence of the increased awareness)

Youth and children partner with associations helping youth / reserve a % of the dwellings for young people

Overview

Mission Funding and mentoring companies in the field of social business through its foundation and social investment funds.

Year of origin 2004

Headquarter location Paris, France

Geographical focus France, Europe outside France (22%), Africa

Sector focus Development and housing, Environment, Health, Cleantech, Microfinance, Employment

Annual expenditure on VP €1.5 mio

VP average investment size €100,000 - €500,000

Average duration of the VP support 5 years

The PhiTrust Endowment Fund identifies, validates, finances and supports community projects in France and abroad.

8.VENTURE PHILANTHROPY

Overview

Mission Collaborate with companies, NGOs, Major Donors, Institutions and Public Authorities to design programs that are beneficial to society.

Year of origin 2000

Headquarter location Barcelona, Spain

Founded by an ESADE alumni, AlterCompany helps family offices, sportspeople and other personalities to design and carry out strategic and effective philanthropy.

They are starting to actively encourage high-net worth individuals to implement VP.

8.VENTURE PHILANTHROPY

The European Comission is funding projects in the following areas:

Energy Efficiency, Renewable Energy, Environment Social Entrepreneurship funds-(EuSEF) - Through local

governments Sostre Cívic needs to meet certain requirements:

Strong focus on product oriented development Establishing a prominent Environmental Bottom Line Integration of Environmental Value into core Value

proposition

9.GRANTS

The European Commission proposes many different grants in several fields of interest. Some of these grants fit Sostre Cívic’s profile.

9.GRANTS

Generalitat de Catalunya – Housing Department

Convocatòria d'ajuts a la rehabilitació d'habitatges i d'edificis d'habitatges.

Deadline: 29th of February 2012.

Examples of possible grants’ Sostre Cívic is eligible to apply for:

Concurso Involucrados 2012 para proyectos solidarios

Targeted projects: Those oriented to improve the standards of live of the underprivileged in the following fields: poorness, health, childhood, women, social exclusion, consciousness, education, integration, international cooperation, volunteering and environment.

Deadline: 1st of March of 2012

The CEB (Council of European Development Bank) is the major instrument of solidaric policy in Europe

The Bank offers Favourable financing conditions through low interest rate loans

to complement EU funds Technical assistance and project monitoring

Track record: €1.2 bn in loans to EU projects since 2004 Three lines of Strategy

Strengthening social integration (throught social housing, urban renewal, job creation…)

Managing the environment (natural disaster, water waste…) Supporting public infraestructure with a social vocation

10.EUROPEAN SOCIAL LOANS

12. TIMEFRAME

Grants +

+ Crowdfunding Other VPs

Make the model more participatory + Raise awareness

Tailor your message to each funding source

Thank you!

Questions?

APPENDIX Social Impact and SROI

Economic By comparing the monthly rental of a cooperative flat with the average rental in the same neighborhood of a corresponding flat. Based on that, the saving in expenses of housing for a family in a year could be established.Outcome: underlies the reduced housing cost incurred by members of Sostre Cívic’s cooperative.

EnvironmentalBy calculating Individual energy consumption of Sostre Cívic’s members living in the refurbished cooperative houses and comparing it to the average energy consumption per capita in Spain (data available online).Outcome: underlies the energy savings obtained thanks to Sostre Cívic’s environmental conscious refurbishment.

Personal impactConducting a member satisfaction survey to measure the impact of cooperative living on their lives. The questions will try to assess members’ general opinion on cooperative living as well as members’ social integration and satisfaction with cooperative living. Outcome: underlies the degree of satisfaction of members towards cooperative living.

APPENDIX Other websites to spread the cause:

Edgeryders is a constructive interaction channel between European young people and our democratic institutions. Its goal is to produce a shared vision of how Europe’s young citizens could claim a stronger influence on our common future – and a larger share of the social responsibility that goes with it.

Global-Giving is an online fundraising platform which allows social investors and donors to chose projects of their interest and in specific geographical locations around the globe. To be list a project on globalgiving one can participate in Open Challenges which serve as an opportunity to raise funds for organizations and become a long term member of globalgiving community.

APPENDIX

Different types of crowd funding: Donation on project in exchange of rewards

(gifts, goodies, etc..) Micro-Investing / Equity stock selling (like classic

angel investing) P2P-Lending (Peer to Peer borrowing and lending) Bet on project and earn Royalties on future

revenue

APPENDIX

Other interesting organizations in the future

A private equity firm operating in Spain, Portugal and South-Eastern Europe with a strong focus on real estate. Based in Madrid, they manage €350 mio and have a growing interest for VP investments.

A UK foundation supporting new ideas and turning them into sustainable organizations. Their investments are still mostly in the UK but they are starting to internationalize. The focus area are youth, education & research and health.

A German fund investing in Social Businesses, which have innovative and entrepreneurial driven solutions for urgent social and environmental challenges. They mainly focus on the financing the growth and expansion of already proven and successful social businesses in Europe

Approach to housing and urban development: Main Purpose: Provide decent and affordable housing

for low income population groups

Broad Projects Categories Housing for low-income people Housing for vulnerable groups of population Housing-related and municipal infrastructure

aimed at improving living conditions “Green housing”, i.e. integrating energy

efficiency objectives

10.EUROPEAN SOCIAL LOANS

10.EUROPEAN SOCIAL LOANS

CEB has historically focused its resouces on housing for low-income people (39%) and in the Southern Europe (44%).

Sostre Civic is clearly targeted by CEB financing resources to support housing and urban development