theo ferguson's 2014 slow money master class investors presentation

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Food & Farming infrastructure vulnerabilities ENVIRONMENTAL l Dependence on fossil fuels l Requires heavy natural resource inputs: F Increased climate extremes threaten genetically homogeneous modern monocultures now covering 80% of the 1,500 million hectares of global arable land F Bulk of our resources and environmental degradation from unsustainable agriculture practices comes from crops grown for biofuels and animal feedlots F Land degradation exacerbated by fertilizers, pesticides, GMOs that are expensive outside commodities and costs that further degrade the soil, waste water, manipulate the genomes, expel greenhouse gasses SOCIAL l The average age of the American farmer is 58 F Young agro-ecological farmers in the US have little or no access to agricultural land or infrastructure such as leasing land from community land trusts with eco-villages or residential housing l US has significant challenges regarding farm and agricultural land succession l UN elevates Disparity of Income as greatest global risk in both 2012 and 2013 (pg. 10) F Need to offset global health pandemics—diabetes, obesity, heart disease and strokes by providing access to food that is good, clean, fair, and affordable FINANCIAL l Pernicious management practice: “maximization of shareholder value” l Tax burdens for emergency room costs—in LA county alone the cost is $1Billion/year, and in the state of California prison related dollars are 7.9 Billion/year lCompetition from industrial processed food producers See also: www.greenmoneyjournal.com/november-2014/agroecology/

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Food & Farming infrastructure vulnerabilitiesENVIRONMENTALl Dependence on fossil fuelsl Requires heavy natural resource inputs: F Increased climate extremes threaten genetically homogeneous modern monocultures now covering

80% of the 1,500 million hectares of global arable land F Bulk of our resources and environmental degradation from unsustainable agriculture practices comes from

crops grown for biofuels and animal feedlots F Land degradation exacerbated by fertilizers, pesticides, GMOs that are expensive outside commodities and

costs that further degrade the soil, waste water, manipulate the genomes, expel greenhouse gasses

SOCIALlThe average age of the American farmer is 58 F Young agro-ecological farmers in the US have little or no access to agricultural land or infrastructure

such as leasing land from community land trusts with eco-villages or residential housing

lUS has significant challenges regarding farm and agricultural land successionlUN elevates Disparity of Income as greatest global risk in both 2012 and 2013 (pg. 10) F Need to offset global health pandemics—diabetes, obesity, heart disease and strokes by

providing access to food that is good, clean, fair, and affordable

FINANCIAL lPernicious management practice: “maximization of shareholder value”lTax burdens for emergency room costs—in LA county alone the cost is $1Billion/year, and in the state of California prison related dollars are 7.9 Billion/year lCompetition from industrial processed food producers

See also: www.greenmoneyjournal.com/november-2014/agroecology/

“It’s great when investors engage in thinking through options, priorities, and ultimate solutions.”

“Picks up the phone when we need help; not too pushy when we’re busy. Plus, being a critical yet feedback- happy customer and ambassador of ours.”

“A person who is networked, connected and will refer the entrepreneur to other qualified individuals who can bring other qualities & money to the table. “ “A good sounding board. Willing to just listen and not feel they must add their opinion all the time.”

“These qualities help us to grow our business as we are able to sell the mission and impact, not just the bottom line. Since we are a hybrid non-profit/social enterprise, our profit margins are tighter than a traditional business, and therefore our repayment period needs to be longer.”

“Investors can better inform the weaknesses of marginalized entrepreneurs.”

“In a perfect world, a friends and family type in-vestor would be a customer first, and then want to invest because of their appreciation of the product and service.”

“Aligned values with regards to social, environ-mental, and economic justice.”

— Quotes drawn from a Survey of Entrepreneurs

“Valuable to experience how the investor presented:

1) how their proposed budget actually penciled out; 2) what additional challenges (truck broke down —need new

truck) occured and how that impacted their annual report;

3) how they reached out for help; 4) how they addressed a short fall and how

they reflected their financial projection for the following year.”

“After two years of focusing on raising money from all of us to establish People’s Community Market—a grocery store in a food desert, the enterprise received a huge shock—the land on which they planned to lease for the location of the grocery store doubled in price because of prospective gentrification.”

“As an equity owner of Pt. Reyes Compost, I speak with Teddy and Lynne several times a year and am able to keep up with their business and their lives. We have developed a close friendship.”

“I am honored to serve as a member of Preserve Sonoma’s community and a friend to Merrilee. When I investigate public/private matching money and people refer me to prospective direct relationship driven investors, I often speak of Preserve Sonoma.”

Observations from Slow Money Entrepreneurs & Investors

Investor experiencesWhat Do entrepreneurs Want?

Observations from slow money Entrepreneurs & investors

Co-packers are critical players in food sys-tems landscapes as more than half of all food in the US is “wasted” as well as all the soil nutrients, water, carbon, vitamins, min-erals, and other important ingredients from which our food grows.

PRESERVE Sonoma captures over production from farms and goods not sold at Farmers’ Markets—jams, salsas, sauces. These fresh value-added products capture the surplus food. Co-packers make more money for the enterprises who grew the products, reduces wasted food, and enable local people can buy these products instead of importing them, thus growing the local economy.

Merrilee Olson of PRESERVE Sonoma lost her finance associate 10 days before she was scheduled to present to a significant in-vestor. I was able to pay for the services she needed: Good Food Web’s BASE—Business Advisory Services for Entrepreneurs—both how to present her offer to investors as well as her financials—her three year projections and profit and loss statements. We created another loan vehicle together to repay me to cover the Good Food Web BASE services she needed in addition to the loan I had already made. Most importantly, she was ready to present to investors.

PRESERVE Sonoma captures surplus fresh food from farm and farmers’ markets’ over production from farms and goods not sold at Farmers’ Markets—and creates jams, salsas, sauces. Co-packers make more money for the enterprises who grew the products, reduces wasted food, and enable local people can buy these products instead of importing them, thus growing the local economy.

Direct Relationship-Driven Investor Intervention: Merrilee Olson of PRESERVE Sonoma: • needed help in presenting to a significant investor. • Theo was able to extend the services she needed: Good Food Web’s BASE—Business Advisory Services for Entrepreneurs—how to present her pitch deck—her offer and her financials—her three year projections and profit and loss statements. • We created another loan together to repay me • Most importantly, she was ready to present to potential investors.

Co-packers are critical players in food systems landscapes as more than half of all food in the US is “wasted” as well as other important ingredients from which our food grows.

SUSTAINABLE URBAN FARM AND ECO-VILLAGE

FINANCIAL

GOVERNANCE

ENVIRONMENTAL

SOCIAL

2-4% Payback

begins in 3 yrs; payoff

in 7 yrs

Consensus Decision

Making

SUSTAINABLE URBAN FARM AND ECO-VILLAGE

COMMUNITY BENEFITS – LOCAL

ENVIRONMENTAL:• Agro-ecological practices• Whole local material resource building materials• No toxic impact• Rainwater catchmentSOCIAL:• Access to local, healthy food• On site-residences--affordable housing• Agricultural land access• “No person left behind”: Hires ex-San Quentin men• Lifts up their community: – Publically accessible park land – Disaster preparedness for community (water and food access)FINANCIAL:• 2-4%• Loan repayment begins in 3 years• Loan paid off in 7 years• Living wages for all worker associates• I paid with my IRAGOVERNANCE:• Cooperative consensus• Diverse ownershipINTERNATIONAL:• Model for agro-ecovillages• Host for MESA stewards

ADDITIONAL COMMUNITY BENEFITS IN THEO’S PORTFOLIO

ENVIRONMENTAL:• Increased tilth; more money for full systems waste mgmt.• More land in production• Less wasted food• Greenhouse gas reduction = increased climate stability SOCIAL:• Reduction in the disparity of income• Grows the cultural and contextual systemic conversation

around the role of local agro-ecological grown food as a critical vehicle that creates health, equity, and resilience in communities

• Template for research kitchen• More people eating grass fed meat FINANCIAL:• More capital modalities available for larger investors to

invest in food and farming—Direct Public Offerings; Funds• Edible Credits: a new currency• More money for farmers and entrepreneurs• Money remains in communityGOVERNANCE:• Diverse coop owners• Local ownership partnership and power• Implementation of feedback based on outcomes soughtINTERNATIONAL:• Great interest in direct relationship investing• Great interest in the Good Food Web

JOIN ME by becoming a direct relationship driven investor in food, farming, and finance and grow health, equity, and resilience in your community.

BECOME AN PEER EXPERT ADVISOR on the Good Food Web, a community commons marketplace and support others who need your knowledge to share with their own communities.

TOGETHER we can leave a legacy of agro-ecological knowl-edge in our families and communities that creates a new culture based on community benefit economics that sustains our beautiful world.

Theodosia Ferguson, peer Expert Advisor: Capital Raising/Investor Relations, Food and Financial Systems