Measuring Social Impact in Context: Rethinking Impact Fund Measurement

Measuring Social Impact in Context: Rethinking Impact Fund Measurement

Lindsay ClintonIntellecap

@lindsclint

Lindsay ClintonDirector, Intellecap US@lindsclint

16th November 2016

Measuring Impact in Context

Food

Education

Healthcare

Shelter

Livelihoods

Sanitation

Low-income communities have many unmet needs

COMPLEX CHALLENGES

1

Food

Education

Healthcare

Shelter

Livelihoods

Sanitation

Entrepreneurs target the most pressing problems

ENTERPRISE-led SOLUTIONS

2

© Intellecap 2015. All rights reservedPrivate and Confidential

Knowledge Capital

Networks

Strategy consulting

Research

Thought leadership

Investment banking

Angel Investing

Conferences & events

Working groups

3

Innovation Labs

Ecosystem approach

Arohan IntelleCash IntelleGrow AavishkaarInvestment Banking

From US$75 to US$10,000,000

5

Provide capital across lifecycle of enterprise

Ø US$ 200 million+ in assets under management

Ø US$ 250 million+ facilitated in equity investments

Ø Over 900 entrepreneurs connected with 300 investors

Ø More than 400 engagements across 25 countries

10

Our approach has demonstrated early success

Ø 5 funds, 55 investments across 8 sectors

Ø 16 Full Exits, 5 Partial Exits

Ø US$ 450 million raised in follow-on funding

Ø 28 million people received access to affordable products, services & regular livelihoods

Ø Over 34,000 people employed by portfolio companies

11

And has created impact on the ground

© Intellecap 2015. All rights reservedPrivate and Confidential8

Who we work with

10

Impact measurement is non-standard and convenience based

© 2016 Intellecap. All rights rese rved

PRISM: Genesis

11

Impact measurement lacks context


12

Impact measurement often leaves the investor out of the equation


13

Few tools measure the sustainability of the capital provider

© 2016 Intellecap. All rights rese rvedPrivate and Confidential

2

Demo of PRISM


Outputs are not enough; need fund inputs

16

Out

puts Social: Beneficiaries,

workers, suppliers –covers access, affordability, livelihood and incomeGovernance: Broad structure, compliance with laws, and diversityEnvironment: Metrics around pollution reduction, conservation, and restoration

Fund

Ris

ks Region of investmentsSectors of investmentsType of entrepreneur backedStage of enterpriseLevel of involvement

Fund

Sus

tain

abilit

y Source of capitalFee structuresUse of technical assistanceManagement and experience

Now covered by PRISM


Four lenses for impact assessment

17

STANDARDIZED IMPACT ASSESSMENT FOR ENTERPRISES

Understand and measure the impact created by an enterprise on ground1

GEOGRAPHY IMPACT POTENTIAL ASSESSMENT

Understand which regions / districts need most development2

FUND MANAGER & IMPACT PORTFOLIO ASSESSMENT

Understand what makes the impact investor different3

REPORTING & VISIBILITY

Illustrate an impact story at its relevant and contextual best4

Evolving PRISM


Collaborative partnerships with many players

19

Concept and Development

Metrics Partners

Pioneer Funds

Partner Funds

Anchor Funders and Supporters

PRISM Partners


Engagement with impact investment practitioners

20

Developed in collaboration and extensive engagement with impact investing industry practitioners

Limited Partners General Partners Industry Organizations

’


PRISM: Development Roadmap

Web-Based assessment platform for GPs

• Social Enterprise (SE) impact assessment module

• Extended investor impact assessment module linked to SE module

APR 2014 OCT 2014 MAY 2016 OCTOBER 2016

Extend PRISM to East Africa

• India socialization & promotion for greater buy-in

• New Indian impact funds on-boarded

2016 & BEYOND…

PRISM monetization as a self-sustaining platform;

Applications for Corporates and their impact investments

21

© 2016 Intellecap. All rights rese rved 22

Thank you!Lindsay Clinton

Director, Intellecap [email protected]

@lindsclint


Standard impact measurement for enterprises

23

STANDARDIZED IMPACT ASSESSMENT FOR ENTERPRISES

Understand and measure the impact created by an enterprise on ground1


Geography Impact Potential Assessment

24

Understand and measure the impact created by an enterprise on ground

GEOGRAPHY IMPACT POTENTIAL ASSESSMENT

Understand which regions / districts need most development2


Fund Manager & Impact Portfolio Assessment

25

Understand and measure the impact created by an enterprise on groundUnderstand which regions / districts need most development





26






27






28

Understand which regions / districts need most developmentUnderstand what makes the impact investor different

REPORTING & VISIBILITY TO LIMITED PARTNERS




29

Understand which regions / districts need most developmentUnderstand what makes the impact investor different

REPORTING & VISIBILITY TO LIMITED PARTNERS


1800Low income suppliers

450Low income women suppliers

~6000Jobs created from low income

communities

~3000Women from low incomecommunities employed

Community Impact

6 Firms engage suppliers from low income communities• 65% of suppliers from low income

communities across 6 investee firms• 80% of total suppliers and 85% of

workers from low income communities of 3 investee firms

13 Firms employ workers from low income communities• 85% of workers from low income

communities• 45% of total workforce are women from

low income communities

Worker Impact

Date post:	16-Apr-2017
Category:	Business
Upload:	sustainable-brands
View:	96 times
Download:	2 times

Measuring Social Impact in Context: Rethinking Impact Fund Measurement

Business