Developing a strategy to obtain funding

1. Developing a strategyto obtainfunding Garima, Sia, Jaume, Ricardo

2. Agenda • The situation • The problem • Our approach • Sostre Cívic • Society • Our proposal • Funding entities • Venture philanthropy • Grants • European Social Loans • Timeframe

3. 1.The situation • Sostre Cívic needs funding in order to complete the budget for the implementation phase. • Total amount: € 350.000

4. 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.

5. 3.Our approach Social Value Sostre Cívic Influence from the society will bring investors Social and Economic Value Society Funding Entities

6. 3.Our approach Three levels of implementation of the model: • Internal • Sostre Civic inspiring itself from best practices worldwide and becoming more attractive to investors. • Externally • Sostre Cívic establishing an ecosystem to raise awareness and spread the social cause. • Tailoring the message to the different funding sources.

7. 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 Netherlands Denmark

8. 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.

9. 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

10. 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.

11. 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

12. 6.Our proposal • Through existing platforms: 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 Crowd funding platform for social projects. Connects social entrepreneurs with people who want to help. Through these platforms Sostre Cívic can reach funding outside their network, expand their network and raise awareness for their cause.

13. 6.Our proposal • Having a Sostre Cívic funding platform: With a widget on their website, Sostre Cívic can leverage on their existing network to collect more funds. • 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.

14. 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.

15. 8.Venture philanthropy • Main issues in raising funds through VP for Sostre Cívic • 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

16. 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

17. 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

18. 8.Venture philanthropy • The PhiTrust Endowment Fund identifies, validates, finances and supports community projects in France and abroad.

19. 8.Venture philanthropy • 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.

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

21. 9.Grants • Examples of possible grants’ Sostre Cívic is eligible to apply for: Generalitat de Catalunya – Housing Department Convocatòria d'ajuts a la rehabilitació d'habitatges i d'edificis d'habitatges. Deadline: 29th of February 2012. • ConcursoInvolucrados 2012 paraproyectossolidarios • 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

22. 10.European social loans • 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

23. 12. Timeframe Tailor your message to each funding source Grants + + Other VPs Crowdfunding Make the model more participatory + Raise awareness

24. Thank you! Questions?

25. 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.

26. Appendix • Other websites to spread the cause: 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. 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.

27. 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

28. Appendix • Other interesting organizations in the future 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 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 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

29. 10.European social loans • 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

30. 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