Lessons from the
Field 2015
The LGT Venture Philanthropy Accelerator Program
LGT Venture Philanthropy
Established in 2007, LGT Venture Philanthropy (LGT VP) is a global impact investor
supporting organizations with outstanding social and environmental impact.
LGT VP’s local teams in six world regions are committed to improving the quality
of life of less advantaged people in developing and emerging countries. It focuses
on education, health and sanitation, agriculture and forestry, renewable energy,
and information & communications technologies.
LGT VP provides grants, debt and equity, transfer of business and management
know-how, and access to relevant networks. To date, it has invested and donated
more than USD 55 million and sent over 100 ICats Fellows into 50 organizations
that have improved the lives of over five million people.
On average, LGT VP invests between USD 200 000 and 10 million in each portfolio company over the course of three to seven years. Institutional and individual
clients benefit from the experience, systems, processes and networks built by
implementing the philanthropic engagement of LGT VP’s founder, the Princely
Family of Liechtenstein/LGT.
In 2014, LGT VP received the Sustainable Investment Award in the category
“Best Social Impact Investor”.
www.lgtvp.com
The DOEN Foundation
The DOEN Foundation believes that a green, socially-inclusive and creative society
is possible. DOEN promotes people and enterprises that take the lead in the field
of sustainable, cultural and social innovation with revenues of the Dutch Postcode
Lottery. DOEN offers these people financial support and brings them together to
connect them.
www.doen.nl
The LGT Venture Philanthropy Accelerator Program 3
Introduction
Social enterprise and impact investing are new approaches to
As one of the earliest impact investors in the region, and one
addressing the world’s most pressing social problems that have
of the first to launch a social venture accelerator for Southeast
gained significant momentum over the past decade. Despite
Asia, LGT Venture Philanthropy is pleased to share the results
the increasing resources and attention directed to these topics,
and lessons learned from the first three years of its Accelerator
building a steady stream of sustainable, effective, and scalable
Program. It is our hope that these practical insights help aspiring
social investments remains a major challenge for investors in
incubators and accelerators to determine the approach they
many parts of the globe. Towards this end, social impact incu-
take in engaging the early-stage social enterprise market. In
bators and accelerators play an important role in preparing the
addition, we hope that this report adds to the existing body
pipeline. In Southeast Asia particularly, social incubators and
of knowledge about social enterprises in Southeast Asia, and
accelerators have just begun to take off. Thus, best practices
sparks meaningful discussion, and more importantly, action
are still being developed, and learnings still being distilled.
that moves the industry and region forward.
With our compliments,
The LGT VP Accelerator Program Team
Our Accelerator Fellows
Hanna Ebeling, David Le, Steven Lee, Salman Shah (Batch 2012); Ashley Lewis, Marlene Mueller, David Soukhasing, Shuyin Tang,
Elena Crescia, Graham Day, Nicolas Demeilliers, Andrea Piazza (Batch 2013); Juan Pablo Arias, Clover Duan, Hub Langstaff, Ivan
Topalov, Yoshitaka Tabuchi (Batch 2014); Damien Durand, Matthew Whalen, Tuan Pham (Batch 2015)
Special Thanks To
The DOEN Foundation for their partnership and financial support
Contact
En Lee, Head Asia-Pacific, LGT Venture Philanthropy
[email protected]
David Soukhasing, Investment Manager Indonesia, LGT Venture Philanthropy
[email protected]
4 The LGT Venture Philanthropy Accelerator Program
Situation – Challenge – Hypothesis
Situation
■■
Institutional impact investing funds begin looking at
At the end of 2011, LGT Venture Philanthropy (LGT VP) was
USD 200 000 opportunities and up – mainly for practical/
faced with a strategic dilemma in Southeast Asia – namely,
economic reasons – which leaves a huge “scale-up” gap
that after three years of active deal sourcing, LGT VP had
only invested in three organizations (out of ~300 screened).
that most early-stage enterprises cannot cross
■■
Potential investees typically lacked:
Local incubators and social enterprise promoters lack connections to the impact investment world. They have usually
never raised institutional capital, and thus do not understand
■■
A basic track record for the business model, financial
sustainability, or impact;
what is needed to be “investment-ready” and often do not
■■
Sufficient documentation to clear an institutional due
have international business experience
■■
A strong management team.
diligence process; and/or
Hypothesis
■■
Investing in early-stage companies will enable LGT VP and its
These challenges were not unique to LGT VP. Other impact
co-investors to support more companies in Southeast Asia
investors were having similar trouble placing capital, due to
over the long-run via:
the nascent state of social enterprise in the region.
■■
■■
LGT VP needed to either wait passively for the market to
Knowledge transfer between LGT VP team, portfolio organi­
zations, and local cooperation partners
develop, shift its focus towards more mature, commercial
■■
deals, or fundamentally change its approach to social enterprises in the region.
Follow-on investments into successful early-stage investments
Growth in the social enterprise pipeline, created by more
effective accelerators and incubators in the region
■■
Providing more customized, hands-on support will enable
the faster transfer of skills and know-how between the
The challenge
■■
Accelerator Fellow and organization, thus resulting in a
typically between USD 5 000 –25 000 – via business plan
■■
higher success rate for scale-up/follow-on investment
Funding available for early-stage social enterprises is
■■
Working in partnership with local social enterprise pro-
competitions, entrepreneurship awards, etc. – paired with
moters and incubators in the region will help build the
minimal capacity-building support
social enterprise and impact investing ecosystem, leading to
When provided, capacity-building support to enterprises
better incubation programs, more inspiring success stories,
and additional funds/talent flowing into the space
tends to lack customization; 1:1 mentoring happens infrequently, and the advisor is usually very disconnected from
■■
day-to-day operational realities
LGT VP, a major impact investor in Southeast Asia, will help
raise awareness for the need for more early-stage interventions and support through creating an Accelerator Program
The LGT VP Accelerator Program provides critical early-stage support
Idea/Start-up phase
0.5 – 2 years
Social/financial impact
Early phase
1– 5 years
Expansion phase
3 –7 years
LGT VP
Accelerator
investment area
LGT VP
Core investment area
Angel investors
10k – 200k
Expansion funding
200k – 10m
Mature phase
7 years +
With early stage support
Without early stage support
Financial support
(USD)
Grants, seed funding
2k – 10k
Intellectual support
Mentoring, business plan writing,
strategy consulting
Institutional funding
10m +
Organizational capacity – building, HR, systems
and infrastructure
Research &
Development
Source: LGT VP, 2015
5
Solution
To address the challenges described above, LGT VP developed
The Accelerator Program was launched in four countries: the
an Accelerator Program for early-stage social enterprises, to
Philippines, Thailand, Vietnam and Indonesia. LGT VP partnered
provide funds of up to USD 50 000 in grants, loans, convertible
with one key local social enterprise promoter/incubator in each
debt, or equity, as well as hands-on support from an Accel-
country to identify, select, and support social enterprises, i.e.
erator Fellow for 12–24 months. Accelerator Fellows, with
xchange (Philippines), ChangeFusion (Thailand), CSIP (Vietnam),
typically 5–10 years’ business experience, provided a mix of
and GEPI (Indonesia). LGT VP aimed to work closely with local
financial management, strategy consulting, and day-to-day
partners in selecting and supporting organizations, so they
operational support to investee organizations – helping them
could see firsthand how impact investors evaluate and manage
to unlock the next level of growth and impact.
deals. Accelerator Fellows 1 were typically based in the offices
1
of the local partner, whenever not on-site with the portfolio
organizations, ensuring maximum interaction and knowledge
exchange with the local partner/team.
Overview of LGT VP’s Accelerator operations in Asia
China
Transi.st
Shangri-La Farms
Vietnam
CSIP
Tòhe
Ecolink
Shanghai
Hanoi
Manila
Bangkok
Singapore
Jakarta
LGT VP Investment Manager/Accelerator Fellow
1
Portfolio company / local partner
Phillipines
Xchange
One Renewable Energy
SUGRUVI
Thailand
Hilltribe Organics
Grassroots Innovation Company
ChangeFusion
NHRCP
Indonesia
GEPI
Source: LGT VP, 2015
An Accelerator Fellow was a new role created especially for the Accelerator Program. Candidates were recruited via LGT VP’s ICats Fellowship Program
for a 14-month stint, wherein they would act as country-based point people for the Accelerator Program, responsible for screening, executing, and
managing deals on an ongoing basis.
6 The LGT Venture Philanthropy Accelerator Program
Results
■■
In 2012, LGT VP invested in six early-stage organizations
Growth of Accelerator Program batch 1 investees
across three countries
■■
In 2013, LGT VP focused on portfolio management and
2011
expanding the Accelerator Program to China and Latin
2012
America, investing in a total of three new organizations
■■
Investing activity in Southeast Asia resumed in 2014, with
two new investments. Another investment was also made
842
1211
2013
1375
2014
in Latin America.
■■
587
0
In 2014, our first Accelerator Program investment, SUGRUVI,
5000
Beneficiaries
received follow-on funding of approx. USD 250 000, thus
10 000
15000
Revenues (in USD ’000)
20 000
25000
Source: LGT VP, 2015
graduating into our core portfolio.
■■
We consider our first batch of Accelerator investments,
i.e. those made in 2012, to be largely successful, looking
at where they are today:
■■
Accelerator Program deals
4 out of 6 have received follow-on investment,
1 (SUGRUVI) from LGT VP and 3 (Pensook, NHRCP, GIC)
25%
from other institutions.
■■
1 organization (Pensook) has been successfully exited,
with full repayment of our loan in June 2014
■■
3 are currently profitable; 2 are on track to reach profitability by 2015; while 1 is struggling financially
■■
Deals by
geography
67%
8%
Since 2011 (baseline year), the total number of bene­
Southeast Asia
ficiaries of the first Accelerator Program batch 1 has
Latin America
China
grown at a 3-year CAGR of 22%, while total revenues
have increased at a CAGR of 33%.
25%
Deals by
instrument
67%
8%
Convertible debt
Debt
Equity
The Accelerator Program by the numbers
8
12
19
549
4 640
1
17%
No. of countries invested in
58%
No. of Acceleratees
8%
Deals by
sector
No. of Accelerator Fellows
Total invested (USD ‘000s)
No. of ICats days invested
Not including Pensook, which was exited in June 2014
17%
Agriculture
Renewable energy/
Environment
Health
Education
Source: LGT VP, 2015
7
Our partners
Shaping legislative agendas
Our local partners have also made great strides, each in
Social enterprises are beginning to feature on legislative
their own way, in increasing their impact and shaping the
agendas in the region:
ecosystem in Southeast Asia:
Vietnam
In 2014, the Vietnamese government
approved revisions to Vietnam’s Enterprise Law which for the first time
ChangeFusion, our local partner in Thailand, collaborated
provides a legal definition of social
with the Rockefeller Foundation to establish a grant facility
enterprise and grants social enterprises
to support accelerator and incubator initiatives in Southeast
a number of specific rights.
Asia. In 2014, ChangeFusion also set up B-KIND, Thailand’s
first ESG fund, which donates 0.8% of the fund to venture
Thailand
philanthropy investments each year.
In 2015, the Thai government is
expected to approve the Social Enterprise Promotion Act, which will provide
various incentives for social enterprises
and supporting institutions.
CSIP, our local partner in Vietnam, held the first Vietnam
Social Investment Forum in 2013, convening stakeholders
from social enterprise, investors, non-profits, business,
and government.
Xchange, our local partner in the Philippines, has grown
its portfolio from two venture philanthropy investments
in 2012 to seven in 2014.
GEPI, our local partner in Indonesia, helped set-up the
Angin Fund, an angel investment fund for high impact
ventures, seeded by Indonesian HNWIs.
8 The LGT Venture Philanthropy Accelerator Program
Since 2012, various local and international impact investment /
venture philanthropy firms have entered the Southeast Asian
market:
■■
International institutions still tend to focus on growth-stage
■■
Encouragingly, more local / philanthropic institutions have
opportunities, seeking to invest USD 300 000 or more
entered the idea formation and start-up phases, providing
between USD 10 000 to USD 300 000 in funding
Overview of the Southeast Asian Social Investment Landscape
Idea formation
10k –100k
Regional Players
Start-up
100k –300k
Grow
300k –1m
Scale
1m – 5m
Mature/Exit
5m –10m
LGT Venture Philanthropy
British Council
Accion Venture Lab
Bamboo Finance
GSVC
responsAbility
Leapfrog Investments
Unitus Impact
Aavishkaar Pioneer Fund
Omidyar Network
Philippines
Xchange
Venture South Int’l
Ideaspace
Indonesia
Kickstart Ventures
Peace and Equity Foundation
mesoImpact Finance
Angin Fund/GEPI
PT SEI
Grassroots Business Fund
UnLITD INDO
Fauna & Flora Foundation
Root Capital
Vietnam
CSIP
Vietnam Business Challenge Fund
Oxfam Impact Fund
Thailand
UnLTD TH
Bamboo Finance
Change Ventures
TSEO
GLAB
Active social investor in sea, pre-2012
Active social investor in sea, post-2012
Source: LGT VP, 2015
9
Learnings
Sourcing
■■
USD 50 000 can work as an initial investment, but early-
Though LGT VP has a much higher pass rate with the Accelerator
stage investors should study the organizations’ cash
Program than with its core investment activities (8 out of ~200
flow requirements, and be prepared to invest another
evaluated = 4% vs. <1% for core), it was still more difficult than
USD 100 000 – 250 000 within the next 6-12 months to
expected to find viable early-stage investment opportunities:
maintain the pace of growth even as the next fundraising
■■
round takes place.
35% of applicants were too early-stage, and/or did not yet
have a viable business model/solution
■■
Deal structuring can sometimes be constrained by local laws,
■■
32% had unconvincing social impact and/or business models
e.g. it is difficult for foreign entities to make small equity
■■
19% did not have a clear path or intention to scale
investments in Indonesian companies; foreign entities are
not allowed to lend to Chinese companies.
Investment process /deal structuring
■■
Equity was challenging in many countries due to foreign
On the other hand, we saw that our “usual” investment
ownership restrictions and registration requirements with
process was not suitable for early-stage deals – expectations
local regulatory agencies. Whilst not impossible, it would
regarding information availability, level of detail in planning,
only make sense for larger deals.
and strength of management pre-investment needed be adjusted downwards according to the organizations’ maturity.
■■
A common issue for most of our accelerator investees
and partners was the length of our due diligence process,
which took on average eight months from initial screening
to deal closing.
■■
However, through our due diligence process, the organi­
zation typically gained significant learnings about stronger
financial management, better strategic thinking, and
future planning.
■■
Also, having us as an investor sent a positive signal to
other investors that the organization had passed our
rigorous due diligence process.
■■
■■
Deal terms should be aligned with the duration of the
Acceleration Program
■■
For the first batch of acceleratees, we issued loans with
a 5-year term, even though the average length of our
accelerator engagement is only 24 months. For subsequent
investees, we structured convertible loans with a 3-year
term, in order to reduce the time between the end of
acceleration and when the financing comes due.
■■
We used convertible debt for the majority of our accelerator investments, as it is usually allowed even where equity
is difficult, yet still allows participation in the upside.
10 The LGT Venture Philanthropy Accelerator Program
Acceleration
■■
It took more time and effort than we initially expected to
Overall
■■
provide hands-on support to organizations:
■■
sector. Entrepreneurs have many advisors but few people
who can execute. Many of our acceleratees have struggled
Language and distance barriers were a significant challenge
to attract and retain high quality talent.
to our work – e.g. for a few of our acceleratees in the first
batch, the CEO was the only English-speaking team member,
Lack of talent is a key hindrance to growth in the social
■■
Accelerators form only part of the answer. To unlock true
making the setup more conducive to high-level strategic
and sustained growth in the SE sector, the following must
advisory rather than hands-on acceleration. Subsequently,
become increasingly available:
we sought to invest in companies with at least a few
■■
English-speaking team members, to enable a deeper level
of acceleration.
■■
management are most lacking;
■■
■■
with institutional investors – financial management, stra■■
Success stories as models for others to follow; and
that we work on constantly with majority of our portfolio
■■
Networks that pay it forward.
It takes months, if not years, to change mindsets and dem­
onstrate results – “acceleration” in Southeast Asia is as
much about funding the entrepreneurial team’s business
education as it is about growing the company per se.
■■
While the Accelerator Fellows’ support was invaluable to
our portfolio organizations, it was somewhat disruptive to
have them switch out every 14 months (average term of an
ICats Accelerator Fellowship). Continuity is key.
■■
Early-stage companies are still likely to pivot several times
before finding the “right” model that scales – if it scales at
all – a process that requires time, deep pockets, and high
levels of commitment.
■■
Investors in early-stage ventures in Southeast Asia should
not expect organizations to have “figured out” their
business models and be wary of organizations that say
they have done so!
■■
Admin/support services such as quality bookkeeping,
legal, fundraising, etc.;
tegic thinking, and structured communication are aspects
organizations.
■■
Capital – patient capital for organizational development/
capex, but also working capital debt for order fulfilment;
Most entrepreneurs in our program lacked the skills or
experience necessary to scale their businesses, or to work
Talent – usually marketing/sales, operations and financial
Investors should ideally have USD 100 000 to 250 000 in
additional/contingency funds lined up to cover OpEx while
the company pivots to find a profitable and scalable model,
and the management team comes up to speed on better
business practices.
11
Recommendations
Define Success
Be clear about the accelerator’s definition of success: is it the
number of organizations supported, or trainings conducted;
is it growth in sales or impact per annum; is it achieving
breakeven or profitability; the amount of follow-on funding
raised; awards received?
“Going wide” vs. “Going deep”
Decide whether you will “go wide” (reach many with a more
standardized program) or “go deep” (reach a few with a more
individualized program) – this has implications on acceleration
program design and resource allocation.
Do the 10x test
When selecting an organization for acceleration, do the
10x test – “Can I imagine this business model / management
team scaling-up their sales and impact by at least 10x?”
Acceleration takes time
Two years is the minimum length of engagement in order to
fully realize results; in most cases, the ideal time horizon for
proper acceleration work should be closer to three years.
Don’t forget the basics
Work on developing a network of trusted service providers,
e.g. accountants, lawyers, etc., to ensure that organizational
“basics” are adequately addressed.
Learn from one another
Create opportunities for your portfolio organizations to be
able to meet and share experiences – some of the best insights
and ideas can come out of such encounters.
It takes a village
Time should also be invested in building an engaged community of potential investors, volunteers, advisors, advocates,
promoters, etc.
Share, share, share
Talk about successes; talk about failures; talk about things that
went “just OK.” Spread the word about great organizations
doing great work. Your experiences might just serve as the
building blocks for someone else’s next endeavor.
12 The LGT Venture Philanthropy Accelerator Program
Annex A
Overview of LGT VP’s Accelerator Investments
Investment
Size (USD)
Investment
Type
Date Closed
Enables subsistence farmers to plant,
process, and sell cassava
30 000
Debt
July 2012
Environment
Diving school wherein students learn
how to dive whilst carrying out coral reef
rehabilitation and protection projects
14 000
Debt
July 2012
Thailand
Healthcare
Chain of affordable primary health clinics,
linked to retail stores selling healthy food
products
50 000
Convertible
Debt
July 2012
Grassroots Innovation
Company (“GIC”)
Thailand
Agriculture
Promotes and enables organic agriculture
by building / educating farmer networks
50 000
Convertible
Debt
July 2012
Ecolink
Vietnam
Agriculture
Organic tea company that provides ethnic
minority communities with sustainable
livelihoods
35 000
Convertible
Debt
August 2012
Tòhe
Vietnam
Education
Provides art therapy to less-advantaged
children in social protection centers;
produces and sells lifestyle products with
these illustrations to fund programs
40 000
Convertible
Debt
August 2012
Vitalius
Colombia
Nutrition
Produces and sells vitamin & mineral
enriched raw cane sugar, a basic staple
of low income families in Colombia
50 000
Convertible
Debt
October 2013
Bive
Colombia
Healthcare
A health membership network that unlocks
quick and affordable access to private
sector care for low income families
50 000
Convertible
Debt
October 2013
Shangri-La Farms
China
Agriculture
Helps connect farming communities to
markets by providing product development,
processing, marketing and sales support
50 000
Convertible
Debt
December 2013
One Renewable
Energy Enterprise, Inc.
(“OREE”)
Philippines
Renewable
Energy
Rural electrification: Distributes solar lamps 50 000
and installs solar water pumps; Commercial:
Designs, installs, operates
and maintains solar PV systems
Convertible
Debt
July 2014
Mukatri
Colombia
Agriculture
Manufacturer of sweets, cookies, sauces
and marmalades made out of ecologically
harvested Amazonian fruits.
50 000
Debt
August 2014
Hilltribe Organics
(“HTO”)
Thailand
Agriculture
Provides marginalized Hilltribe communities with livelihood opportunities, by
rearing chickens that produce free-range,
organic eggs
80 000
Equity
October 2014
Name
Location
Focus Area
Description
Sustainable Growth
for Rural Venture, Inc.
(“SUGRUVI”)
Philippines
Agriculture
New Heaven Reef
Conservation Program
(“NHRCP”)
Thailand
Pensook
13
Use/s of funds
ICats Support
Key Achievements
Purchase a truck;
additional processing
equipment
Developed a monthly reporting template;
created financial model to plan expansion and
evaluate CapEx options; connected CEO to
new business opportunities
SUGRUVI has raised a total of USD 350 000 in additional funding
from local and international partners since LGT VP first invested;
Revenues have doubled while the number of beneficiaries has
quadrupled since 2011.
Purchasing additional
equipment;
sales and marketing
Developed an effective financial monitoring
and reporting template; assisted in successfully
applying for additional funding
Continuous growth in the number of students and reef area under
care, in line with or exceeding targets; Significant increase in publicity
through social media and press coverage in 2014.
Setting-up a second clinic
Financial management and planning;
designing social impact management
framework
Opening of 2nd and 3rd clinics in Bangkok and Chiang Mai in 2013;
Recruitment of key local management team including a Director
of Operations, Chief Doctors for the two new clinics, Nursing staff,
and clinic managers.
Increase fertilizer
manufacturing capacity
We were of limited utility to the company
due to language barriers and limited
opportunities to interact with the CEO
Commencement of strategic partnership with the Thai Social
Enterprise Office (TSEO) in 2014 to develop new products and
be a preferred consulting services provider.
Obtain organic certification
and expand tea/ginger
processing facilities
Supported implementation of strategy planning
processes; improved financial management
Completed organic certification in additional tea growing area;
Secured additional financial support from Swiss NGO Helvetas and
French NGO SIDI.
Hire a sales manager and
a production manager,
open a new shop in
Hoi An, and attend an
international gift fair
Connected Tohe to potential clients; engaged
two long-term, full-time pro-bono sales and
marketing professionals to support Tòhe
Opened 2 new shops in Hanoi and entered Ho Chi Minh City and
Hoi An markets; entered into first long-term distribution agreement
with a German fair-trade retailer in 2013
Working capital for sales
pilots
Developed an effective financial monitoring
and reporting tool; heavy support on sales
channel analysis
Developed intervention plan to optimize the company’s cost
structure. Mentored CEO on formal business practices to track
the company’s performance
Expansion of sales team;
working capital for sales
on credit
Developed an effective financial monitoring
and reporting tool; developed system to track
credit portfolio and collection strategy
Led successful proposal to raise USD 500 000 from Swiss foundation.
Developed KPIs for managing loan portfolio and effectiveness of
collection strategy.
Recruiting additional sales
executives to expand
distribution channels
Introduced resources/contacts, especially
several sales leads. Improved financial
management and reporting.
Working capital
Developed a detailed cash flow projection
template; created a financial model for a new
business opportunity; assisted the company
in developing a logo / marketing materials
Raised USD 150 000 in additional funds from a local institutional
investor
New packaging equipment
and inventory to expand
capacity in factory.
Helped implement a new accounting and
financial reporting system; Implemented
new factory inventory processes.
Implementation of accounting system for accurate and timely
reporting of sales and costs. Optimized production lines by reducing
waste, cost and product defects.
Purchase of chicks, as well
as payment for feed and
vaccination costs; CapEx
Financial management; sales and marketing;
exposure within social enter-prise community
Onboarding of nearly all major retailers in Thai-land within one year;
Successful close of first external funding round in Q4 2014
14 The LGT Venture Philanthropy Accelerator Program
Annex B
Selected responses from our investees
Question
Avg. Score /
Rating (out of 5)
Comments
Were your expectations
met? Why or why not?
3.67
LGT VP’s support was good, but sometimes we were not ready to follow the advice – maybe no time
or no people to do the tasks or finish the project.
Would you recommend
LGT VP to another
enterprise?
4.25
The advising help we have received made us step back and evaluate our program in more detail; write
down a lot of the plans and business ideas we had been talking about; set realistic goals, and strive to
achieve them. Also of course the financial support received greatly increased our ability to purchase
needed materials and hire on additional administrative team members.
All financial help is useful for any company; LGT VP provides opportunity for companies trying to do
“good” or necessary activities that banks or other lending companies may not consider when coming
to lend out money.
Not just financial assistance, but hand-holding is part of the journey.
Would you recommend
LGT VP to another
enterprise?
Expert in local language; local experts that understand the Asian situation.
Connection and partnership for business growth; sponsored networking and collaboration among SEs
in the program.
Promotion and marketing of investees, increasing their profile in Asia and the world at large.
Selected responses from our local partners
Question
Avg. Score /
Rating (out of 5)
Comments
What were the most
valuable things you
gained or learned from
participating in the
Accelerator Program?
A strong regional accelerator network + helpful and committed ICats + knowledge sharing
What was missing?
What could have been
done better?
Not that anything was missing, but the tone of engagement should have been qualitatively different. In
practical terms that would mean less time on pre-close DD and a lot more capacity-building post-close.
Investment process
We developed a “Deep Dive” experimental initiative that attempts to more aggressively address
capacity gaps in investee organizations.
The ICats should also be reconsidered. Short-term deployments of skilled volunteers can be disruptive
for a startup that doesn’t yet have a well-established approach to change management. This risk can
offset a lot of the benefit that an ICat delivers.
Ability to speak and use local language will be useful.
LGT VP could document and share lessons learned from various cases in Southeast Asia to build a
stronger knowledge base in the region. The Accelerator Program can be more open to support social
enterprises that come from backgrounds other than business.
Would you recommend
LGT VP to other social
enterprises? Why or
why not?
4.33
LGT VP team is reliable and committed. The financial support size is suitable for social enterprises.
However the funding / investment procedure took a bit long.
There has been nothing to suggest that LGT VP is anything but an excellent impact investor, but the
investee needs to be at an appropriate level of maturity to be able to maximize LGT VP’s potential impact.
“LGT Venture Philanthropy has
provided us with the right support
at the right time: collateral free
loans, business advice, technical
support, and access to their
networks, all helping to raise
Tòhe’s efficiency and competitive
advantages.”
Ms. Tran Thanh Loan, CEO of Tòhe in Vietnam
LGT Venture Philanthropy
Färberstrasse 6, CH-8008 Zurich
Phone +41 44 256 81 10, [email protected]
www.lgtvp.com