SOCIAL INVESTMENT FUND

IN TUNISIA

Positive impact and development through finance

Social Investing & Tunisia

� Social/Impact investing unlocks more capital for companies, funds and other vehicles that generate positive social

and/or environmental outcomes�Venture philanthropy (VP) takes concepts and techniques from venture capital finance and high technology business management and applies them to achieving philanthropic and development goals.� Social investing and VP are growing trends considering the ineffiencies of aids and donations: the number of funds engaged in impact investing has grown quickly in the last five years, and a 2009 report from the Monitor Group, a research firm, estimated the impact investing industry could grow from its present $50 billion or so in assets to $500 billion in assets within the next decade. This capital may be in a range of forms including equity, debt, working capital lines of credit, and loan guarantees.lines of credit, and loan guarantees.

There is now an opportunity to bring social and venture philanthropy investments to Tunisia.The Diaspora can play an important role by investing in social funds to support their home country

Social Return meeting

social needs in education,

health, access to finance etc.

Financial Return

meetingmarket

requirements

What sort of fund?

� The money raised (from donors, social investors, foundations,

development banks) to establish the fund will not be donated but invested

in order to actively achieve social and environmental goals

�The fund can invest directly in social entrepreneurs with high impact on

their communities (option 1) and/or can be used as a guarantee for loans

to these entrepreneurs (option 2) as exposed in the following slidesto these entrepreneurs (option 2) as exposed in the following slides

Social/Impact Investing

Social Entrepreneurs

Positive impact

Growth and development

Option 1: Guarantee Fund

Micofinance

insititution:

ENDA

Social

Development organizations

Wealthy Individuals

Guarantee for loans

Social

Investment

Fund

Leveraging

Tunisian expats/

crowd sourcing

(ex: 33needs.com,

Microplace)

International Social Investment Fund

Inte

rme

dia

ry f

un

d

Invested in Financial Markets

Option 2: Direct Investment

Development organizations

Wealthy Individuals

Seed

FundsSocial

Investment

Fund

International

Maghreb

Merchant

Bank

S&ME

fund ex:

Tuninvest

Partners/fund managers for “risky” social enterprises

International Social Investment Fund

Inte

rme

dia

ry f

un

d

Leveraging

Tunisian expats/

crowd sourcing

(ex: 33needs.com,

Microplace)

Fund

How to select social entrepreneurs?

To achieve “impact through finance”, the fund will target social entrepreneurs

with high impact on society and environment, through competitions,

acceleration programs, direct applications, regional networks, and incubators.

Below are some representative examples of social entrepreneurs (fictional):

Rached is starting Dev-Maghreb to Rached is starting Dev-Maghreb to

offer development, consulting and

financial assistance to associations

in Tunisia, Algeria and Marocco. The

services of his for-profit company

also include training and partnership

building with development

organisation in US, Asia and Europe.

Alia is the owner of Artisanes , a

company that manufactures and

exports hand crafted bags and

jewelry , with “fair trade”

certification, exclusively employing

women from disadvantaged areas,

from where the Tunisian revolution

started.

Ahmed needs funds to start scaling

up his Zitlamp, a prototype that

converts waste from olive oil

factories into a powerful source of

clean energy.

Jamila is requesting financial

support to establish Transparency

Desk, the first online advisory firm

in Tunisia that is dedicated to

corruption fighting and bribery

reporting.

What to do with the returns?

As explained, investments will meet specific financial requirements.

Returns might be sub-market but they will exist. We thought about 3 ways

to handle returns. Option 2 and 3 would improve the social mission of the

fund:

�Option 1: Back to the limited partners;

�Option 2: Reinvested;

�Option 3: Given as grants to capacity building.Investments

Reaching the Tunisian Diaspora

This fund can be financed in a large part by enthusiastic and engaged Tunisian

expats , who are spread accross Europe and North America.

An effective web platform would be the best way to reach them!

Crowdsourcing would allow to gather « small » participations from a large Crowdsourcing would allow to gather « small » participations from a large

number of Tunisians abroad (like Kiva.org, Microplace, 33needs.com)

Crowdsourcing would be one of the main innovations of the fund.

Serious partners dealing with the Diaspora would allow an effective

promotion

Reaching the Tunisian Diaspora

Potential partners?:

Project selected and Finalist :

Various incentives, Common Fund

We assume that an established PE firm will We assume that an established PE firm will

accept to assist in managing the fund for the

following reasons:

-Positive impact on its reputation which will

allow the firm to raise more funds for other

investments;

-It will allow the manager to build

The Diaspora will be interested in investing in

the private sector development of Tunisia

instead of donating. They will appreciate being

reached through social media and web

platforms.

Fun^ M[n[g_r

Tunisi[n @\ro[^-It will allow the manager to build

relationships with more entrepreneurs and

capture future deals .

Growing number of international investors

are seeking funds that exclusively deal with

high social impact entrepreneurs.

Venture Philanthropists are willing to

support international entrepreneurs that are

not attractive for “ordinary” funds: early

stage, risky idea, small market etc.

platforms.

The entrepreneurs are seeking for relevant

funds that have the expertise and the network

to leverage their social impact and their

innovative ideas.

Fun^ M[n[g_r

Inv_stor

Tunisi[n @\ro[^

So]i[l Entr_pr_n_ur

Join the project!

If you wish to know more and/or want to get involved, please contact:

Hatem Mahbouli

Tounesna Fund Project Manager

hm289@georgetown.eduhm289@georgetown.edu

www.hatem-mahbouli.com

Hatem Mahbouli is currently pursuing an MBA at Georgetown University, in Washington, DC. He has been involved in several projects to develop impact investing and Social VC with Ashoka, Grassroots Business Fund, 33needs.com and GrayGhost Ventures . Hatem has also a Master’s degree in Telecom Engineering and had worked for 3 years in Accenture, Paris Office.

MFI

Ex: ENDA

Social

Investment

Social business

competitions

Networks

Development organizations

Wealthy Individuals

Guarantee for micro-credits

Fin

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l re

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General Overview

Banks

PE and

VC firms

Investment

Fund

Partners/fund managers for risky social enterprises

Applications

Social

Entrepreneurship

Center/hub

Development

Service Firms

Leveraging Tunisian expats crowd

sourcing(ex: 33needs.com,

microplace)

International Social Investment Fund

SOURCINGFUNDRAISING

Inte

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dia

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Fin

an

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So

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