Nancy E. Pfund, Managing Partner TBLI Conference Europe 2012 November 9, 2012
DBL Investors - Double Bottom Line Venture Capital
We are a San Francisco-based firm with a “Double Bottom Line” approach to venture capital investing
Our unique strategy:
Venture capital investing with a goal of achieving top-tier financial returns
Proprietary assistance to portfolio companies - delivering social, environmental and economic benefits to our regions
Results:
Fund I ($75M) has consistently achieved top-tier financial returns
Successfully closed Fund II in 2011 at $150M
22 active portfolio company investments as of November 2012
Market leading companies creating thousands of jobs with meaningful impact
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DBL Investors Fund I Exits
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IPO June 2010
IPO
A
CQU
IRED
Acquired by Johnson &
Johnson in June 2005
Acquired by SunPower in January
2007
Acquired by Siemens in January
2012
IPO June 2011 Filed for IPO
Impact Measurement & Metrics
Why we measure
o DBL’s double bottom line mission is grounded in a commitment to metrics
o Transparency in social and environmental returns is essential to make informed decisions on current and future investments
How we measure
Limited Partners help shape reporting requirements o Ford Foundation
o CalPERS/CalSTRS
o The California Endowment
o Banks with Community Reinvestment Act (CRA) requirements
What we measure
o Quantitative metrics: job creation, quality of jobs-benefits, diversity, companies and employees in LMI/Enterprise Zone
o Qualitative metrics: programs in workforce development, community engagement, environmental stewardship, public policy
When we measure
o Two LP reports per year, combining quantitative charts & qualitative narrative
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Job Creation is the Key Metric
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Investing in sustainable, scalable companies creates net new jobs in a region Job creation yields long-term impact on individuals and ultimately on communities through:
Stable income Housing Education Healthcare
Wealth creation Security Dignity Community Revitalization
Metrics for Fund I
750
1500 1,509
3463
4,000
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Entry Level Total Jobs over Life of Fund
Fund I Bay Area Jobs Created
Target Number of Jobs
Actual Number of Jobs (6/30/12)
Projected Bay Area Job Creation over Life of Fund
Fund I geographic focus is the San Francisco Bay Area 5
Over 6,500 total project jobs nationwide by 2014
Total Jobs: 2,662
Earning LMI wages
65%
Living in LMI area
51%
Net New Jobs Created Since DBL Invested 1423
Total (out of 2,662) Ethnic Minority Employees 926
Total (out of 2,662) Women Employees 488
Benefits Enrollment – Employer Co-pay Health Care Retirement/401K ESOP
74% 48% 99%
Diversity of Key Managers (Women, Ethnic Minority) 25%, 14%
Company Facility in LMI or Enterprise Zone 64%
Company Community Engagement Programs 57%
Company Environmental Stewardship Programs 64%
Living in LMI area, and
earning LMI wages 36%
Aggregate Second Bottom Line Metrics as of June 30, 2012
Metrics for Fund II (2010 Vintage Year)
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DBL Portfolio Companies Products Significantly Cleaner Than Incumbents
OPX BioAcrylic chemicals have the potential to achieve an 80% reduction in petroleum use per
kilogram of final product compared to petroleum-sourced
Acrylic Acid
The eco.bottle uses approximately 66% less plastic than traditional rigid plastic
bottles
Tesla’s electric vehicles are 0% petroleum-powered
As of 3/31/11- Tesla Roadsters
had driven more than 16 million real-world kilometers- that's nearly 2 million liters of
fuel that didn't burn
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DBL Solar Companies Have Contracts That Equate to A Reduction of Millions of Tons of CO2 Emissions Per Year
US Solar Pioneer PowerLight designed and deployed hundreds of large-scale solar power systems with a total capacity of more than
100MW between 1996 and 2006, when acquired by SunPower
As of 6/30/2012, SolarCity had deployed 201MW of rooftop solar
A solar system for a typical 3-Bedroom home will offset 50 tons of carbon dioxide over 20 years, saving the equivalent of driving a car 160,000
kilometers, the CO2 absorbed by 50 trees or 110,000 liters of water used in electricity
A typical 100MW BrightSource Energy solar power plant will reduce CO2 emissions by
131,600 tons per year based on the California average CO2 emissions of power
plants of 376 metric tons per GWh
Solaria’s net environmental
impact is at least 16X less than
Natural Gas and 37X less than Coal
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Workforce Development
Second Bottom Line activities improve the First Bottom Line
Community Engagement
Public Policy Assistance
Environmental Stewardship
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Double Bottom Line Program Areas CO
NFI
DEN
TIA
L
First investment (2007): 63
October 2012: over 2,000
Company Spotlight
Veterans Hiring Program
SolarCity created a veterans hiring program which employs 65 veterans (as of Q2 2012) as solar installers, managers/administration, IT, and energy efficiency auditors
National veterans hiring program partners include: CA National Guard, JPMorgan Chase’s 100,000 Jobs Hired, Swords to Plowshares, CA Conservation Corps, Veterans Green Jobs and Veterans Affairs offices
Job Creation Public-Private Partnership
SolarStrong program installing 300MW of solar on 120,000 military housing units across the US
SolarCity contracted to provide solar installations for over 100 multi-family affordable solar housing projects
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$500K PRI from Kellogg Foundation provides low-interest equipment financing for New Orleans kitchen facility
Kaiser Permanente & East Bay Community Foundation grants help to fund Oakland Summer Food Service Program, providing meals for low-income kids during summer
First investment (2006): 2
October 2012: over 900
200,000/day
80% to low-income students
Company Spotlight
Employee Financial Literacy
In 2012 DBL created and sponsored financial education workshops for entry-level employees (75% of Oakland’s hourly workers attended April and June workshops)
Workshops teach value of banking, budgeting and saving, helping convert unbanked employees to banked
Partners include EARN and One Pacific Coast Foundation
Job Creation Public-Private Partnership
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Healthy Meals Served
Revolution Foods
Impact Investing Virtuous Cycle
Invest in sustainable, scalable companies with industry-leading disruptive innovations
Portfolio companies
Create new markets or disrupt existing markets
Create net new jobs: quantity and quality
Deliver measurable social, environmental and economic benefits
Revitalize economically depressed areas & improve local tax base
Asset class of impact venture capital continues to grow with measurable results
Using a Double Bottom Line investment approach helps portfolio companies develop a “culture of impact”
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For More Information
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Nancy E. Pfund, Managing Partner Email: [email protected] Phone: +1 415-568-2910