An edited presentation to GIBS (Gordon Institute of Business Science on Heart's model of social enterprise incubation and blended value proposition funds.

3. INTRODUCTION | The Heart Space Social Value Financial Value Corporates NGOs

4. INTRODUCTION | The Heart Space Financial Value Social Value Social Value Financial Value High High Low Low Social Capital Investments (Social Returns) Financial Investments ( Numeric returns) TRADITIONAL MODEL

5. INTRODUCTION | The Heart Space TRADITIONAL MODEL Cause Donor Public Donations: R17 billion in 2007 CSI R4.3 billion Outcome: Maintenance Donors give money Charities spend it & come back for more Never Ending Cycle

6. INTRODUCTION | The Heart Space Donor Social Enterprise Redirect a portion of charitable contributions to Social Enterprise Outcome: Sustainability Donors invest money Funding problem eliminated permanently Cause HEART MODEL

7. INTRODUCTION | The Heart Space Social Value Financial Value NGOs Corporates Social Enterprise Do-gooder, whole wheat sandal, hippy, bunny huggers Money grabbing, bottom line junky, capitalist, evil doers A gap in the market and a market in the gap HEART MODEL

8. INTRODUCTION | Blended Value Economic Value Social Value Social Value Economic Value High High Low Low Maximized Social & Financial Returns

9. INTRODUCTION | Blended Value Seed Funding Start Up Funding Secondary Funding Mainstream Funding Traditional phases of Entrepreneurship Traditional phases of Social Entrepreneurship ?

10. INTRODUCTION | Blended Value The social enterprise spectrum: philanthropy to commerce – Harvard business school

12. WHAT IS HEART | Intro Heart, transforming quality of life by creating, incubating and establishing social enterprises that work long term.

13. WHAT IS HEART | Intro It is our vision and vocation to bring about social transformation by creating sustainable social enterprises market-based solutions to social problems We are the nexus between social entrepreneurs needing capital and support to develop their social enterprises, and social investors seeking financial and social returns .

17. WHAT IS HEART | Incubation Social Value Financial Value 1. Originate 2 . Incubate 3. Activate 4. Replicate

19. WHAT IS HEART | Advisory Cause –Related Funds Heart Venture Clubs Engaged Philanthropy Venture Philanthropy Charitable Contributions Fund, Heart Seed Fund; Heart Venture Fund; Heart Capital Fund Charity Wines Venture Club; FoodTent Venture Club; Adrenalize Venture Club, etc

21. CASE STUDIES | Second Harvest Second Harvest Farmers plough about 20% of their crops back into the ground because the vegetables are not market quality. We approach farmers to let us harvest this produce – a second harvest. These vegetables are cooked into nutritious stews, which are packaged into 1,2kg plastic bags and frozen. 1 bag feeds 8 - 12 children Sponsors: Lewis Roll Out: Based in Langa & Bellville – replicable model Sustainability: R8 per packet Projected Income: 30 000 packets per month = R240,000

22. CASE STUDIES | Wines with Heart Every month more than 50 of South Africa’s leading wine farms donate their products to Charity Wines. These wines are packaged into a Mystery Box and sold to consumers for R250. Proceeds from sales are invested into NGOs with a Fetal Alcohol Syndrome or Severe Learning Disability focus. Our goal is to eliminate their need to fund raise within 3 years. Sponsors: KWV, Distell + 52 wine farms Roll Out: Based in Stellenbosch, provides national delivery Sustainability: R250 per box

23. CASE STUDIES | Wines with Heart THANK YOU!!