Social Responsibility/Venture Philanthropy
The European Venture Philanthropy Association has released its first ever comprehensive data on the Venture Philanthropy Industry in Europe. The study was conducted by EVPA’s Knowledge Centre and will be conducted on an annual basis. The main outputs include a VP industry report expected in early 2012 and benchmarking data for the participating VP organisations.
Here below you can find the key findings of the study proving the coming of age of venture philanthropy in Europe with VP organisations investing more than € 1 BN since their inception.
Venture Philanthropy in Europe
As a nascent industry VP investments are made by a few large (€ 100m+) investors and many small (< € 10m) and medium (10-100m) investors that still struggle for survival.
As the above graph shows investment criteria of VP organisations is focused on societal returns. These organisations mainly seek for societal impact only (50%) or societal impact (38%). When financial returns are earned, 68% include use them for reinvestments.
In regarding funding sources, VP organisations show a large diversity with the funding coming from foundations’ endowment income (40%), PE, VC and Hedge funds (23%), high networth individuals (17%) and the remaining from corporations, foundations, governments, institutional investors, recycled return and earned income.
The study shows how VP organisations mostly invest in young organisations and are also willing to invest in start-ups. These organisations usually range from non profit organisations to for- profit organisations with a social mission.
Target Sectors of Venture Philanthropy
The above graph shows the main target sectors of VP Organisations. The most common sectors are Health (27%) and Education (21%), though many other areas are eligible (such as environment, housing, culture, research and social services). The end beneficiaries of VP investments are the weakest in society: youth & children 18%, people suffering from poverty 14%, disabled 11%, immigrants 10%, elderly and women.
The industry data also shows that the majority of investments are made in domestic (30%) or regional (31%) markets in order to provide the “hands on support” of venture philanthropy, with very limited cross-border funding within Europe (4%). The remaining investments are directed towards developing countries, mainly in Africa (18%) and in Asia (10%).
Asia Venture Philanthropy Network
The Asian Venture Philanthropy Network (AVPN) is building a vibrant and high impact venture philanthropy community across the Asia Pacific region. AVPN has more than 110 members from 18 countries and has a Member Directory and listing of Events at www.avpn.asia .
We promote venture philanthropy in the broader philanthropic and social investment communities and provide specific networking and learning services to meet the needs of our members.
AVPN is a non-profit organisation based in Singapore with membership across the Asian region. We are supported by grant funding, sponsors and partner organisations.
We are building a cross-sector network bringing together organisations and individuals from finance, business and the social sector. Our members include venture philanthropy organisations (practicing members) and associates that bring different networks, expertise and experience.
Associate Members include private equity managers, private banks, wealth managers, other financial services organisations, professional service firms, family businesses, corporations through their CSR activities, foundations, universities and government related entities.
We are the hub for news and events focused on venture philanthropy to develop shared learning and best practices. Through our Knowledge Centre we will be developing practitioner oriented resources to help scale the practice of venture philanthropy across Asia.
Please visit www.avpn.asia to learn more and contact us at info [at] avpn.asia if you have specific enquiries.
We encourage you to engage with us and support our field building activities through sponsorship, grants, donations, or joining as a member or partner organisation.
European Venture Philanthropy Association
WHO WE ARE
EVPA is a membership association made up of organisations interested in or practicing venture philanthropy across Europe. Established in 2004, the association is a unique network of venture philanthropy organisations and others committed to promoting high-engagement grant making and social investment in Europe. EVPA defines Venture Philanthropy as an approach to build stronger propose investees organisations with a societal purpose by providing them with both financial and non-financial support in order to increase their societal impact.
EVPA’s diverse membership includes venture philanthropy funds, grant-making foundations, private equity firms and professional service firms, philanthropy advisors and business schools. Currently the association has over 150 members from 21 countries.
EVPA envisions a European philanthropic and social investment market that enables efficient funding of NGOs and social enterprises at all stages of their development, where venture philanthropy complements and strengthens other forms of funding.
EVPA’s mission is to promote the expansion, effectiveness and impact of venture philanthropy and social investment in Europe.
WHAT WE DO
To achieve its mission, EVPA:
Provides a forum for European-based venture philanthropists to network, exchange ideas and debate best practice through an annual conference and other online and offline meetings.
Supports its members in carrying out their venture philanthropy activities through workshops, site visits and research
The EVPA Knowledge Centre collects industry data and produces research on best practice, mapping the future of venture philanthropy and social investment, and facilitating its development.
For more information please view our EVPA Introduction.
VP Investors’ Intervention
The above graphs shows how non-financial support is the key to investees. 58% of investees (according to the investors) consider non financial support more important than financial support, while 27% consider both on the same level. Also non-financial value-added support can take numerous forms, from strategy consulting and coaching to marketing and operational management.
Finally the Knowledge Centre’s first statistics on the VP industry in Europe show how VPs work actively and closely together with their investees: three quarters of respondents meet with their investees at least once a quarter and take a board seat, and 92% want to measure impact.
The investees’ self-sufficiency and growth is then considered and planned in the VPs organisations’ planned exit strategy (38% in all investments and 34% on most investments).
The ppt presentation is available to download here.
For further information, please stay tuned to the upcoming industry report.