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Wanted dead or alive
1. Wanted Dead or Alive?
Modeling the ‘Walking Dead’ Social Venture
Jennifer Woolley, Santa Clara University
Norris Krueger, Entrepreneurship Northwest
these slides: http://goo.gl/cUJ8H
2.
3. Math problems…
• Social Venture 1: Feeds 100 people a day with
an annual budget of $100,000
• Social Venture 2: Feeds 250 people a day with
an annual budget of $75,000
• Who do you invest in?
• Who do you keep investing in?
4. And what about beta?
• Social Venture 1: Feeds 100 people a day with
an annual budget of $100,000
• Social Venture 2: Feeds anywhere from 50 to
150 people a day with an annual budget of
$100,000
5. Are “Zombies” a Joking Matter?
The back story of this project
• “walking dead”/“living dead” from venture
finance
• Impact investors?
• But when could a zombie = GOOD thing?
• And when do we….
6. A few questions that we need to ask:
Misallocated resources or misunderstood role?
• What causes an organization to become a
‘walking dead’, but not exit or scale?
• When do the ‘walking dead’ create value and
if so, how?
• Under what circumstances is the status of
‘walking dead preferred?
7. For Impact Investors & Other Funders
• Who should be encouraged? Who should be
discouraged?
• What are appropriate metrics?
Deeper Issues
• Should we re-allocate resources away from the
‘walking dead’?
• When (and how) do we intervene with the
‘revivable’ ‘walking dead’?
8. Theory of Zombies?
• Who are they? Really…
• How/Where/When do they matter?
• How will we know?
• And perhaps… how to fix them?
– Assuming that they need fixing…
9. Scaling & Investment
• Diagnostics for “failure” to scale?
– Want to grow [controllable?]
– Know how to grow [fixable?]
– External constraints [??]
Scaling usually means higher beta
Is that true for social ventures?
10. Community embeddedness
• Stakeholders –what is their role(s)?
• Connectivity -> nonlinearity in returns
• Portfolio theory issues?
– For impact investors
– AND
– For communities?!
– Why not apply MPT, etc. here?
11. • Social Venture 1: Feeds 100 people a day with
an annual budget of $100,000
• Social Venture 2: Feeds 500 to 1500 people a
day with an annual budget of $1,000,000
• I love gamma but shouldn’t there be two
terms? (two alphas, two betas?)
12. Back to research questions
• But are they the right ones?
• <more shameless pandering to audience>
Misallocated resources or misunderstood role?
• What causes an organization to become a
‘walking dead’, but not exit or scale?
• When do the ‘walking dead’ create value and
if so, how?
• Under what circumstances is the status of
‘walking dead actually preferable?
13. For Impact Investors & Other Funders
• Who should be encouraged? Who should be
discouraged?
• What are appropriate metrics?
Deeper Issues
• Should we re-allocate resources away from the
‘walking dead’?
• When (and how) do we intervene with the
‘revivable’ ‘walking dead’?