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How do you market your social venture to a hungry venture capitalist?

How do you market your social venture to a hungry venture capitalist?
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I think this question might be better directed toward angel investors, rather than venture capitalists. VCs seek proven business models that are ready to scale and deliver a 10x to 20x return on investment in 5-7 years. Moreover, VCs seeks a liquidity event of some sort (i.e. M&A: Mergers & Acquistion; or IPO: Initial Public Offering). A social venture that is already generating revenue with a solid business model and the potential for scalability can be attractive to a VC. But the vast majority are focused on financial ROI for institutional and individual investors of the funds the VCs manage. It’s tough to sell goodness and positive mission impact to a VC. Angel investors, however, are often interested in the social impact of the companies in which they invest. And they invest their own money or funds from a pool of individuals, not institutional funds (i.e. pensions).

Answered about 2 years ago amikegreen2 8 from United States

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Demonstrate economic potential first (market analysis, cash flow projections, etc.), segue into the social benefit, and close with returns. The financial bottom line drives decisions – the others are still “nice to haves”.

Answered about 2 years ago ericajadelock 16 from United States

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My honest answer from a straight short perspective is that you cant. Social ventures are shaking up the way our money system works in general and corporations, venture capitalists are a part of that system which needs change. Angel investors are angels for a reason. Everything that amikegree2 said is completely true. 

Answered about 2 years ago vanessaboamah22 8 1 from United States

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This is a big topic! I heard a great presentation yesterday from Toniic on this exact subject. Looking for venture capital is a distinct set of skills from those that enable you to create a viable social venture ready to scale. Organizations (including Echoing Green) provide grant money and fellowship stipends to help social ventures get started – but for entrepreneurs taking the for-profit or hybird (for-profit mixed with nonprofit) approach straight up venture capital can be essential for scaling their impact. Toniic has an interesting model. They serve as a curated clearing house for impact investing deals. They vet social ventures and then link them to an international community of dedicated impact investors. Their process begins with an executive summary that quickly allows a potential investor to understand the deal. The major “marketing” happening, besides networking to get your deal in front of the right eyes, is bringing your venture to a great place where it has the capacity to scale with an influx of capital.

Do you have a project you are trying to woo capital for? 

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Answered about 2 years ago tallybower 289 3 from United States

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This is an interesting question. Check out this post for some advice as well: http://beta.echoinggreen.org/blog/advice-aspiring-social-entrepreneurs

Answered about 2 years ago jay g 131 2 from United States

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