Village Capital & Frontier Market Scouts: Istanbul I. Village Capital FAQ 1. What is Village Capital? Village Capital creates opportunity for world-changing entrepreneurs through the power of peer support. We run 3-month programs for cohorts of 10-20 early-stage social enterprises through a process that includes: • Intensive peer review and support, culminating in

investment selected by one’s peers; • A structured program involving mentorship and

educational sessions led by highly successful entrepreneurs and the investor community;

• Access to a global network of investors and strategic partners.

2. What sorts of companies do you work with? To be considered eligible for a Village Capital Cohort, enterprises must: • Have proof-of-concept: A minimal track record and

customer feedback are required (Ideas on paper are not sufficient)

• Go through catalytic change as a result of the Village Capital investment: generally, enterprises that have not already received institutional investment are favored

• Have measurable social and/or environmental impact: Ideally, impact that is aligned with the firm’s business models

• Profitability and return of capital expectations: we focus on enterprises that can achieve 20-30% IRR over five years, and next-round investments in two years

Our core programs are targeted towards early-stage, for-profit social enterprises. Our primary focus is on post-revenue companies seeking investment in the order of $50k - $500k (within the next year) and more than $500k within the next 24 months. We also work with particularly promising teams who are pre-revenue but beyond just the idea stage. For more on enterprise eligibility, please contact Gray or Carolyn. 3. How is Village Capital Funded? Village Capital is funded by a combination of grants from private foundations such as the Rockefeller Foundation and DOEN Foundation, local business organizations in each program location such as InvestAtlanta, and donor advised/PRI funds. Capital for investments comes in part from donor advised and PRI funds from funds including Gray Ghost Ventures and RSF Social Finance.

• Founded in 2010 under Gray Ghost Ventures (First Light Ventures Fund)

• Launched 14 programs worldwide • 6 programs as independent venture • Village Capital has made 24 investments to date • Deployed $1.8 million in capital • 3 companies have exited/returned capital to

VilCap • Participants have raised $12 million in follow on

capital • 7 companies have raised over $1M individually

in follow on capital • 2/3 received investment within 6 months of the

program • 50% of our programs are located in emerging

markets • Created over 500 jobs • Served 10’s of thousands of customers • Oldest participant 70 years old, youngest 19 • List your services and products here. • List your services and products here.

Key Facts About VilCap:

Village Capital & Frontier Market Scouts: Istanbul 4. How does the investment in the winning companies work? The Investment is typically an entrepreneur friendly convertible note worth $50,000. Simply put, this works as follows:

1. Peer selected enterprises receive $50,000 from Village Capital (via independently managed donor advised/PRI fund)

2. Entrepreneurs use funds to grow and manage company, periodically reporting to VilCap. Most will also seek and receive additional investment from other funding sources.

3. After 24 months Village Capital has 2 options: 4. Request return of capital as debt repayment with 8% annual interest 5. Convert debt to equity at a valuation based on the next round of funding (with a 20% discount) i.e. Company

raises $250k (in addition to VilCap investment) in Series A round for 25% of the company - VilCap’s investment converts to 6% of the company (Valuation of $1M means VilCap’s $50k is worth 5% - the 20% discount increases to a 6% equity stake in the company)

II. Frontier Market Scouts Frontier Market Scouts is a Social Enterprise and Impact Investing Fellowship co-sponsored by the Monterey Institute of International Studies and Village Capital. The Village Capital FMS program goals vary from location to location depending on current Village Capital presence and the local market. For FMS associates in Istanbul, their objectives can be simplified to the following: Program Development: Pipeline Stage Standard overall goals include: • Develop pipeline of 30+ social enterprises for a potential “Village Capital Istanbul” program • Identify 10+ successful entrepreneurs, investors, and inspirational speakers and mentors for future Village Capital

Istanbul program • Create 5+ individual due diligence reports for high-potential entrepreneurs • Create strategic assessment of VilCap program options in Istanbul (Sector focused vs. sector-agnostic, region/city

specific vs. country wide)

III. VilCap Program Associates: Istanbul

If you know of any enterprise that might be a good fit for a Village Capital program, or for more information, please contact Carolyn or Gray.

Carolyn Caton is a recent MS graduate of Columbia University where she majored in social enterprise administration. Through her coursework at Columbia, and fieldwork at UNICEF Headquarters, she studied international social welfare and economic strengthening for women and children in complex emergency settings. Prior to graduate school, Carolyn helped start-up Native Public Media, a resource and policy initiative focused on media infrastructure development in rural and Native America. This summer she completed the Frontier Market Scouts social enterprise and impact investment training at the Monterey Institute of International Studies. Placement Dates: July 11 – September 7 Email: Carolyn.Caton@vilcap.com Phone (Text Only): +1 (510) 282-3339

Gray Robinson graduated from Davidson College in May with a BA in Political Science and a minor in Economics. Her expertise with small and growing businesses ranges from positions with boutique marketing and event planning firms, to research and academic work, both at Davidson and at Innovation for Poverty Action’s Small and Medium Enterprise (SME) Initiative, where she studied SMEs as vectors for economic growth in developing country contexts. The Frontier Market Scouts training provided an extensive overview of the small enterprise and impact investing space, preparing her to apply this experience to her current position in Istanbul. Placement Dates: July 11 – December 18 Email: Gray.Robinson@vilcap.com Phone: +90 (535) 373-3043