1. 14th June 2012
Social Innovation Lab 1: Social
Enterprise: Investment & Funding
3rd Annual Asia NGO Innovation Summit, Seoul, South
Korea, 13 - 15th June 2012
Vijay Pratap Singh Aditya, New Delhi, India
Co-Founder & Chief Executive Officer
www.ekgaon.com

2. Introduction
 Globally Social Enterprises have caught imagination of development actors, government and
investors alike.
 Genesis of the 'idea' of a 'social enterprise' comes from the quest of creating sustained impact
of initiatives on communities.
 Enterprise based operations mode allows social organisations, professional management of
service delivery, building of scale and introduction of latest and appropriate technology in the
value chain for enhanced productivity and sustaining the initiative.
 Enterprise mode of operations necessitates generation of revenue and surplus (profit) to meet
cost of operations, mitigate costs escalations in markets, management and administrative
costs, business development and expansion costs, while ensuring provision for depreciation,
technology improvement, environmental and other social costs.
 While successful social enterprises have shown scale and sustained growth and impact,
however generic templates of success are unavailable to give enough legal and economic
basis for improvement in business registration, tax and financing mechanism across most
countries of the world.
 A range of intermediary structures called “hybrids” exists across the world trying to evolve
successful business models.
 Amongst all issues, funding and investment remains most critical for most social enterprises.
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3. SI Lab 1: Social Enterprise Investment & Funding
 Introduction to the discussion agenda for the Lab – Vijay Pratap Singh Aditya, CEO, ekgaon
technologies, India
 Social Investment for Social Enterprises – Sunit Shresta, Founder, ChangeFusion, Thailand
 Ants Sponsor project as Social Funding (Crowd Funding) – Aran Kim, Beautiful Foundation,
South Korea
 Interactive Discussion – Speakers and Lab group delegates
 Sharing with other delegates in different social innovation labs
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4. Investment or Funding: Need Vs
Want
www.ekgaon.com

5. What & When: The decision of raising funds
 Scale of a SE is important to determine, WHEN is the right time to go for raising
investment
 The decision on WHAT financing is right one for the SE is dependent upon
amongst other factors on 1) Legal status of SE as per the laws of the land 2)
Business vision (Plan) of the SE 3) Financial structuring of the SE including
ownership structure
 Any SE seeking to raise investment have to get the right answers to these
questions before making a choice
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6. When to Raise Funding
 Stage of SE – More then number of years in operations, it is important to
understand the scale vs envisioned scale
 Seed Stage – Ideation, prototype and testing the pilot
 Start Up – Successfully tested idea whose technical and financial viability in pilot is
established
 Growth Stage – For growing the enterprise to achieve scale
 Public Financing Stage – raising investment from public finance institutions or
capital markets
 Sustaining Stage – enterprise revenue and impact in expected line with investor
interest
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7. What to Raise?
 Based on the stage of the enterprise, a range of financial products are available
(however not accessible)
 Seed Stage – Angel Investment, Grants, Awards, scholarships and recently
crowdsourcing
 Start Up – Venture Capital (Including Social Venture Capital), Angel Investment,
Government Programmes, Long-term debt (convertible to equity) instrument
offered by semi-government instruments, INGOs and Developmental investment
arms of global financial institutions (like the GBF of IFC, The World Bank), JICA
etc. and recently crowdsourcing
 Growth Stage – Venture Capital (including Social Venture Capital), Banks,
Financial institutions, INGO funds, government programmes inter-agency
programmes such as the European Commission and IFC.
 Public Financing Stage – Share markets - IPO
 Sustaining Impact Stage – Various debt instruments for working capital
management, sales on books, revenue flow, reserves and investments
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8. Contact
For inquiry please contact
Vijay Pratap Singh Aditya, Chief Executive Officer
ekgaon technologies
E 142 A, Lower Ground Floor, Kalkaji, New Delhi - 110 019, India
tel: +91 11 4055 1490 | fax: +91 11 4055 1491
email: info@ekgaon.com | web: www.ekgaon.com
Regional Office (South India)
Door No. 14/6, Opposite BSNL Exchange, Ellis Nagar, 20 Extension Road, Madurai - 625010, Tamil Nadu, India
tel: +91 452 4368094 | telefax: +91 452 2602433 | email: info@ekgaon.com | website: www.ekgaon.com
Registered Office
Ahmedabad, Gujarat, India
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9. www.ekgaon.com