Venture Philanthropy

in Japan
Social Investment Partners

Fragmented SPO Market in Japan

Business scale
200-300M

Among 50,000 SPOs, most are

struggling in small scale

Few SPOs that maintain

sustainability to maximize social
impact

Existing supporting organizations

focus on early stage, in small
amount, usually for a single year.

CSR focuses on specific sector or

field of assistance. Individual
probono is based on volunteers at
ado-hoc

Small number of
large scale businesses

SIP VP Model

50M

20M

10M

Medium scale
businesses with the
potential to grow

Existing
Intermediaries
Large number of small
scale non-profit
organizations

No. of organizations

Strong Demand for Long-term

Financial and Managerial
Support with Governance

Distribution of the business scale and quantity of SPOs in Japan

1

Who we are?
VP organization founded in 2012, by seven business sector veterans
with average more than 20 years of experience in venture capital,
private equity, corporate finance and management
Manage JVPF (Japan Venture Philanthropy Fund) in the amount of 150M
yen with Nippon Foundation. Donors are business professionals,
business owners, corporates. Nippon Foundation commit 1:1 matching
Focus on development stage. SPOs with proof of concept to expand
social impact

Probono commitment: invested more than 1,000 hours in aggregation

Bain & Co:
strategy consulting
Clifford Chance:
legal counsel
VOX Global Japan: communication consulting
One international accounting firm joining this year

What we do?
Thorough DD to identify and measure social impact utilizing TOC and
Logic Model. Main selection criteria is:
Innovative approach and solution to social issues
Measurable social impact and its scalability
Sustainability of operation
Management team
Mold business plan with potential investees to design support plan:
Long term financial support with various instruments and milestones
Long term managerial support with road maps with governance
Portfolios:
NPO After-School (2013): Achieved 3-year business plan by one year
ahead. Number of schools and beneficiaries has grown by 3 times.
Started operation at public schools based on their best practice at
private ones. Revenue has grown from 40M yen to 200M yen.
Teach For Japan (2014)
3

APRIL 21, 2015

Our Vision
Social Impact Partners aims to change peoples lives for the better through
financial, human and intellectual support for Hong Kongs social purpose
organizations, using the venture philanthropy approach.

Investment Strategy
Geography:

Hong Kong

Sectors of Interest:

Primarily in education, youth, employability

Size of investment:

HKD 1 3 million

Investment period:

Periodic disbursement over 3 to 5 years vs. performance indicators

Stage:

Early-mid stage organization in process of scaling

Objectives
Scale up proven programs/ enterprises addressing critical social issues
Prove concept of VP against the liability of newness in Asia

Progress to Date
HKD 15 million raised
Vehicles for both grants and social investments established

Strategic partners across key operational functions

Reviewed 40 deals with 3 in due diligence and 1 approved for investment

Developing Resources
Focusing on providing non-financial support is critical to the Social Impact
Partners model and to helping organizations become strong, more robust and
sustainable

Can be sourced from investors, paid consultants and pro bono resources

Strategic Partners

Generating Deal Flow

Pre-launch market profiling
Sources of deal flow:

Foundations

Social investors

Consultants

Industry groups (HKCSS, HKFx. TWF, etc.)

Need:

To articulate the benefits of an engaged funder relationship

To provide high level of early stage. pre-application support

Assessing Impact
Key Question for SPOs:
What outcome i.e. social change, are you striving to achieve?

Quarterly KPI Reporting

Deal flow
Development of network

Capital deployment
Co-investments

Portfolio health

APRIL 21, 2015