2. Agora Partnerships 2 Mission: Agora aims to connect small, developing entrepreneurships in Nicaragua and other Central American countries with socially-conscious investors The Accelerator Program provides consultation, development, education, and capital for these social enterprises to create a positive social impact and develop a culture of entrepreneurship
3. The Challenge Develop a self-sustaining financial model for the Accelerator Program Establish a market accessible to all impact investors Connect investors and entrepreneurs in a transparent environment Engage undergraduate students Leverage untapped human and social capital Provide venues to get involved 3
5. “ImpactXchange” Agora-sponsored social media site connecting potential investors to both each other and early-stage social enterprises Coordinates investors looking to pool small funds Creates a social entrepreneurship community Highlights Agora Accelerator Entrepreneurs as role models for upcoming entrepreneurs Revenue earned through membership fees and transactions processed by Agora Network effect increases revenues as site develops 5
6. ImpactXchange Analysis Builds a network Benefits Provides access to growth capital Fosters a culture of impact entrepreneurship Low traffic to site Risks Privacyprotection 6
10. Financial Model Timeline Beta Phase Phase I Phase II Phase III 2010 2011 2012 2013 2014 2015 2016 Develop site Launching Year Monitor engagement, traffic, and investments brokered through site 10
11. ImpactXchange Profit Projections 11 Estimates refers to number of entrepreneurs; Base Case uses exhibit 7 assumptions See supplemental slides for further analysis and assumptions
13. “Agora Collegiate Practicum” (ACP) Current Agora MBAs educate undergraduates on impact investing through on-campus organization Structure Functions as an extension of MBA consulting teams Begins with recruiting efforts by MBAs early in semester Follows curriculum designed by Agora with input from MBAs Develops undergrads as future impact investing consultants with MBAs as mentors 13
14. Agora Collegiate Practicum Analysis Utilizes undergraduate potential for ideas and engagement Benefits Creates an entry into the impact investing industry Develops a pipeline of potential investors and future MBA consultants Risks Administrative Obstacles MBA Turnover Rate 14
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17. Supplemental Slides: Key Assumptions 17 Assumed pricing increase from Phase 1 to Phase 2 for selected areas * Exhibit 7 assumption Average Investment per Firm: assumed 150000 average investment assumed (Q/A session), 2% growth equal to GDP Incremental Transaction Fee: assumed investors WTP for ImpactXchange service is equal to current transaction fees Investors adopting system: assumes growth rate equal to projected Beta year: no subscription revenues in 2010 for free pilot service in order to find system bugs, receive feedback, and spread awareness of product Social Metrics Subscription Rate: rate of adopting investors choosing to buy metrics Estimated Development Costs: assumed 30000 yearly expenditures on social media in Phase 1 for website development. Phase 2 consists of limited development and mostly operational costs No additional Costs implementation Costs Exhibit 7 sensitivity Analysis
20. Supplemental Slides: Evaluation System A way to account for both financial and social returns in investment criteria in cooperation with GIIRS Showcase the advantage of investing as opposed to other non-profit opportunities Benefits: Measureable SROI for investors to consider Accounts for investor risk, develop WTP 20
21. Supplemental Slides: Social Benchmarking Incentive System Including social incentives in term sheets Benefits: Growth of entrepreneurial thinking in addition to revenue growth Monetary incentives for increasing social impact Gives investors influence on business models 21
22. Recap 22 Financial Model Objective: Create entrepreneurial environment via social media website ImpactXchange Creates a network among investors and entrepreneurs Provides access to capital Fosters an impact entrepreneurship culture Undergrad Engagement Objective: Partner with MBA consulting teams to develop Agora Collegiate Practicum Utilizes undergraduates’ potential Creates a gateway into Impact Investing Cultivates potential MBA consultants and/or investors Develop ACP participants as future impact investors using ImpactXchange
