ANANDA – Social Venture Fund
Ananda Ventures is one of the leading venture capital investors for social enterprises in Europe. Ananda invest in social change ‘on it’s own doorstep’- in high growth companies based in Europe and targeting social issues in the region.
Ananda Ventures works with the founders of social enterprises in the spirit of equality. It have created a unique network of investors, business people, social entrepreneurs and experts to achieve our common goals.
Ananda Ventures currently manages approx. 30 million euros in two funds (Social Venture Funds I + II). Our investors are (entrepreneurial) families, funds, banks, and institutions (e.g. EIF).
What investment criteria they have?
Social entrepreneurs and their mission require a precisely structured and reliable flow of funding. Ananda support them in questions of business infrastructure, which we tackle through personal meetings. Its define common goals and discuss appropriate ways of repaying the capital.
Ananda knowa how important it is to go beyond financial support. Ambitious early stage entrepreneurs need high-profile connections as well as management, legal and PR consulting. The opportunity to exchange ideas with experienced social entrepreneurs and business people is invaluable as businesses grow. Ananda Ventures benefits from a network of investors, experts, management specialists, social enterprises and organizations operating in relevant fields. These ‘ambassadors’ serve as our flexible backbone. Its unique infrastructure provides a strong added value to our portfolio companies.
From Ananda own experience, they understand the challenges which social entrepreneurs face. They are thus well-placed to effectively support them as they grow. Ananda always keep the vision in clear focus: social impact – a sustainable and effective solution to a social problem.
At Ananda Ventures, social entrepreneurs and their motivations play a central role. They are inspiring individuals who build capable teams and create successful social enterprises. Their projects are ‘role models’ in their fields and in their countries- and they have the potential to expand internationally. They develop business models that are scalable, with the scope for strong, dynamic growth.
Successful social enterprises exist in many areas. Their primary goal is to effectively identify and solve the problems faced by a disadvantaged group. In Ananda portfolio, the main themes are education, social integration, ageing population, long-term unemployment and health. However, Ananda is open to discussing other areas where substantial impact can be triggered.
Ananda support high-growth social enterprises, whose products have already passed the proof of concept. Positive feedback from the target market and an existing client base should already be in place. Another type of investee that Ananda like to support are companies that have successfully built their market presence and require more capital to fuel additional growth.
Ananda Ventures is the first pan-European social venture fund and a pioneer in its field. Its focus on enterprises that operate primarily within Europe and that are headquartered here. Similarly, their impact should be made first and foremost within Europe. With Ananda home base in Munich and an office in London, they are positioned at the center of the European impact investing and venture capital markets.
Medium to large amounts:
The investments range is from €500,000 to €1.5 million. For later stage financing, they draw on their network of co-investors to syndicate rounds of €5 million and more. Ananda normally act as lead or major co-investor in later stages, but is open to participation with minority stakes in cases that promise compelling impact. Ananda holding periods typically vary between 5 to 8 years.
The spread of financing structures ranges from mezzanine to equity capital. The structures are fitted according to the business model, stage and exit scenario, as well as the exit preferences of the founder.
Strong social impact:
The key to success lies in the impact of the target company. It can be clearly measured and is well-defined by key performance indicators that position the company at the peak of its sector.
There is no success without extraordinary individuals. The social enterprise has a motivated and capable team that knows how to maximize impact while creating a sustainable and economically viable business.
The financial position of the social enterprise is sound and able to service the invested capital. In case of a pure equity injection we need to see a realistic exit window.
The business model has to be amongst the most efficient and effective solution in its peer group.
What is not a fit for Ananda Ventures:
Sometimes not everyone is the right fit. Ananda deliberately exclude projects without positive social or ecological impact or the intention to achieve a financial return. In particular, projects or enterprises that are directly or indirectly related to sectors such as nuclear energy, defense, addictive substances, or that risk using child labor are excluded. In addition, organisations with political overtones or links to fundamentalist religion do not belong to our target group. The Social Venture Fund does not participate in turnarounds, bail-outs or situations where government subsidies secure workplaces. As a principle, risks and opportunities should be equally shared among the stakeholders.
Application and Investment Process
Ananda investment managers continuously evaluate new ideas in the field of social entrepreneurship. In order to obtain a brief overview, they ask that you send them directly theExecutive Summary of your business. If the described venture is of interest to Ananda, they will contact you for a more comprehensive business plan. If the venture continues to be of interest to Ananda Ventures and meet their preliminary criteria, Venture Found team will arrange an interview with you either personally or via the telephone. The Due Diligence process will then begin.
Depending on the complexity of the business model, it can take between 4 and 16 weeks to go from the initial application to receiving support from the Social Venture Fund.
information source: http://www.socialventurefund.com/en