Invested Development: social enterprise

Showing posts with label social enterprise. Show all posts

Friday, December 2, 2011

Weekly Review November 27-December 3

After last week’s regional focus on Africa, this week we focused our reading on social enterprise and development in Latin America.

“Latin America Report: Ready for Explosive Growth” on Renewable Energy World

Many Latin American nations are reducing their reliance on fossil fuels and by transitioning toward renewable energies like wind, solar, geothermal and biofuels. Wind energy prices are increasingly competitive, especially in Brazil, which are expanding so rapidly that wind farms may very overtake natural gas thermal plants in the next 5 years. With high hopes for solar, Renewable Energy World is launching a weekly report on Latin America. Watch out for in on Wednesdays.

“Rural Peru gets connected” by Mattia Cabitza on The Guardian Poverty Matters Blog

Revolutionizing life in Peru, where one in four people live without electricity, 130 rural communities are benefitting from the Euro-Solar Programme. The program reaches “more than 300,000 people whose communities are not connected to the electricity grid.” Each community received solar panels and the free EU kit, which allowed them to run dozens of electronics, including an antenna for satellite Internet. The investment of ~$47.6 million is also benefiting seven other Latin American nations.

“Survey shows confidence in SMEs amount banks in South America” on MicroFinance Focus

SMEs in South America will be crucial to the development of the region, according to a survey of 170 regional banks that are looking to increase their credit portfolio in the sector. This year, 89% of banks actively lend to SMEs, up 13% from 2008. This type of support and confidence in the SME sector helps foster entrepreneurship and continued growth in the region.

“Latin America poverty level lowest in 20 years, says UN” on The BBC

According to Eclac, the UN’s regional economic body, there are 177 million people living in poverty in Latin America. That’s 31.4% of the total regional population. The good news is that level is down from 1990, when 48.4% of the population lived in poverty. Poverty and inequality are on the decline, but to maintain this, there is a need for employment in high productivity sectors. See Eclac’s report for full details: Social Panorama of Latin America 2011 (PDF).

If you’re in Boston, don’t forget to sign up for our event #CleanTechThatMaters on December 14! Find out more here.
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Thursday, December 1, 2011

Poverty-Fighting Mobile Transaction Systems (Part 4): Social Capital

This is the fourth post in our series, “Leveraging Mobile Penetration at the BoP for Poverty-Fighting Mobile Transaction Systems.” Click the links below to catch up on anything you might have missed.

Social Capital - Networking and Participation

As we introduced in the first post, the key to a successful mobile technology applications to alleviate poverty is the exchange. In the case of networking and participation, an exchange is the receiving and sending of ideas and opinions and the power to organize or participate in the community.

Mobile phones create powerful social networking opportunities. Mobile applications can offer users the opportunity to leverage their networks for referrals and create opportunities for peer lending. Social networking tools, everything from SMS to Facebook, facilitate organization and participation, as we witnessed during Egypt’s Arab Spring Revolution. Leveraging mobile ubiquity to expand on social capital reaps many benefits for users in a community where communication tools are limited.

The mobile phone with its most basic feature, SMS, promotes impact by creating an exchange. NGOs and governments around the world have used SMS texts to inform and alert populations to serious alerts. For example, FrontlineSMS and Jana (both discussed in this Weekly Review) allow businesses and NGOs alike to communicate with their target market in developing countries. FrontlineSMS prompts consumers to participate and engage through a platform that allows NGOs and businesses to send group texts, asking questions and opinions to a large mobile user base. Similarly, Jana (formerly Txteagle) collects market research data with mobile phones by allowing businesses and NGOs to distribute surveys via SMS with promotional incentives.

Tying It All Together - Mobile Ubiquity and Reducing Poverty

It is clear that mobile phones provide many benefits to users at the base of the pyramid. In the United States we have access to such benefits and resources not only through mobile phones, but by many other mediums. We can network on LinkedIn, search for jobs on Monster, read reviews of local service providers on Yelp!, take surveys to get coupons, borrow from a bank, use and build credit, and transfer money in seconds on our online banking applications. While some may argue that these seem to be simply promoting consumerism, the key point to highlight once more is the exchange. To reiterate Dr. Harish Hande’s philosophy, we must allow the poor to create their own wealth by giving them the tools to do so. With a mobile phone at the fingertips of over 70% of the world and a growing community of social innovators, we can create mobile technologies for sustainable global development.

What other ways can we leverage mobile ubiquity to create poverty-fighting technology?

Tuesday, November 15, 2011

Poverty-Fighting Mobile Transaction Systems (Part 3): Information Exchange

This is the third installment in our series on mobile transaction systems and their contribution to the fight against poverty. First, we introduced this series with an overview of mobile penetration rates and the mobile phone’s power for impact. Then, last week, we highlighted the first transaction system - mobile money - and the benefits such transactions offer to users. This week, we will look at the different ways mobile phones facilitate exchanges of information and how they benefit the users.

Information Exchange

Mobile phones can provide information to the otherwise isolated citizens at the base of the pyramid. When mobile phones facilitate the exchange of information, this has perhaps the most wide-ranging impact on its users.

For Farmers

Source: http://www.grameenfoundation.org/

The ability to access information about weather and prices leads to make or break decisions for farmers. To facilitate quality access, organizations like the Grameen Foundation have developed schemes that allow poor farmers in Uganda to gain access to valuable market data. This empowers the farmers by granting them access to information about market prices, weather reports, and planting advice. Without the data and information, farmers can suffer costly losses that would be preventable with timely knowledge. A designated “community knowledge worker” (CKW) identified by Grameen collects information from farmers and uploads it to the database for other CKWs. This sort of data collection and information sharing is hugely empowering, but it’s impossible without access to a mobile phone. Other examples of organizations seeking to fill this gap are mFarm, iCow, and Esoko.

For Job Seekers

Source: http://www.assuredlabor.com/

There are transaction systems that have revolutionized the job and talent searches in the developing world. As more corporations are moving into emerging markets, they need to source and hire talent. Mobile transaction platforms like Assured Labor (branded as Empleo Listo, think of Monster on SMS), allow companies to access potential employees on existing channels – mobile phones. On the other side, users can search for job openings on their phones. This enables users to find local jobs and avoid emigration where possible. This platform is especially advantageous for those who do not have access to traditional Internet on a PC, where most jobs are posted.

The mobile phone creates opportunities in markets that are beyond the reach of a traditional laptop. You’ll find farmers and job seekers in all populations, but continued innovation in mobile technology can further extend the benefits of information exchange on a mobile phone.

Check back next week for examples of networking, participation, and social capital exchanges made possible on mobile phones.

Friday, November 11, 2011

Weekly Review November 6-12

A cornerstone of our philosophy is to combine the efficiency of the free market with the heart of the social sector. Private investment and entrepreneurship will create sustainable development in emerging markets.

“Social Venture Catalyst Ennovent invests in Barefoot Power” on YourStory.in

Ennovent’s Sustainable Enterprise Fund announced yesterday that it invested in Barefoot Power. Barefoot provides renewable energy and lighting to off-grid or under electrified communities in India. Co-investors include Insitor, Oikocredit, and The Grace Foundation. There is still a large need for greater investment activity in India to electrify the country and eliminate energy poverty.

“Investment manager speaks about venture capital in East Africa” Interview with InReturn Capital’s Eelco Benink by Regina Ekiru on How We Made It In Africa

Benink, an investment manager at InReturn Capital, discusses the firm’s investment criteria and portfolio, and the interest VC firms are showing in Africa. Africa is attractive to both impact investors and traditional venture capitalists because of its demonstrated and expected growth. The population is young, political environments are stabilizing, and there is a growing middle class and an abundance of natural resources.

“Venture Capital Office Hours with Sean Smith” by Patrick Munyi on iHub Blog

Now that Invested Development is growing and expanding globally, our team member Sean Smith is getting settled in Nairobi, Kenya. He’s now holding open office hours at iHub Nairobi every other Friday. Entrepreneurs, innovators, or those interested in venture capital are welcome to come by and chat.

Global Entrepreneurship Week 2011

November 14^th marks the beginning of Global Entrepreneurship Week. A project supported by the Kauffman Foundation. Local activities in participating countries include competitions, conferences, and networking events. This is an exciting opportunity to drive venture capital into emerging markets and to encourage entrepreneurship.

“Libyans Need Economic Freedom” by Jay Hallen on The American

Libya is at a crossroads. Similar to Egypt, there are high numbers of unemployed youth. The article recommends that the National Transitional Council use oil revenues to create venture capital funds for college graduates. A startup community would not only develop the country’s economy, but do so in an all inclusive way.

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Thursday, November 3, 2011

Poverty-Fighting Mobile Transaction Systems (Part 2): Mobile Money Transactions

Last week we introduced this series that will highlight the different ways mobile phones can combat poverty. This week, we will discuss the first example of a poverty-fighting mobile transaction system. Mobile money transfer services provide financial inclusion benefits for the unbanked, and are the most heralded impact of mobile penetration.

Mobile Money Transactions

Perhaps the most well-known mobile transaction systems that engage the base of the pyramid are mobile money transactions. The various flavors of mobile money transactions (mobile payments, m-wallets, mobile banking, etc.) have revolutionized the way users send and receive money throughout emerging markets, bringing millions of previously unbanked users closer to full financial inclusion.

Safaricom’s M-PESA, the golden beacon of the mobile money industry, set a standard in Kenya that others are trying to follow. The telecommunications company released its mobile money service in March 2007 and currently has 14 million users in Kenya alone. Today, nearly 17% of Kenya’s GDP flows through M-PESA, even though many of these users do not have bank accounts. The resounding success of M-PESA has sent a message across the globe. There is tremendous demand from the unbanked for financial efficiency and cashless transactions.

Inspired by the success of M-PESA, others are quickly joining the movement. Competing telecommunications companies from Manila to Mexico have created similar models and even banks are deploying mobile payments with branchless banking models to serve the rural poor. Whatever the approach, mobile money transactions give the unbanked the opportunity for financial inclusion, including secure, cashless financial transactions. In most cases, users can transfer money, and pay bills with a simple and secure text message, or deposit/withdraw cash at any participating agent.

There are also less obvious benefits that come from the growth of mobile money transactions. Agents, who are usually small shopkeepers, enjoy increased revenue streams and increased customer presence in their stores. Because the money is “e-float” and not cash, the risk of funds being lost or stolen decreases significantly as well.

Image Courtesy of Simpa Networks

However, for real financial inclusion, mobile transaction systems are going to have to expand their services beyond simple cashless transactions. Some of this is happening already. For example, Safaricom recently partnered with Equity Bank to develop M-KESHO in Kenya, a product that provides M-PESA users with interest bearing mobile savings accounts. Another example comes from Simpa Networks, an ID portfolio company that leverages mobile technology to finance the costs of solar home systems. The Simpa Regulator allows users to make payments with their mobile phone to pay off the cost of the system over time. In this way, mobile transactions can expand one of the most important aspects of financial inclusion, credit.

Check back next week for examples of information exchanges made possible with mobile phones.

Monday, October 24, 2011

Poverty-Fighting Mobile Transaction Systems (Part 1): Leveraging Mobile Ubiquity at the BoP

The ID team spends a lot of time discussing and studying the mobile technology industry. The driving force behind our focus on mobile technology in emerging markets has been the explosive growth of mobile phone penetration rates and the potential for mobile transaction systems to reduce poverty.

Our most popular post on this blog is “Mobile Phones at the Base of the Pyramid: Accessibility and Affordability” published in June 2010. In that post, we outlined why mobile phones matter, citing examples of connectivity and mobile access increasing income at the bottom of the pyramid. Since then, we’ve narrowed down our focus even more. Every day we learn about new mobile transaction systems and applications that change the way people at the base of the pyramid live and work.

Over the past few years we have learned that the key to mobile transaction systems is the exchange. As Dr. Harish Hande, founder of SELCO-India and the winner of the 2011 Ramon Magsaysay Award said in his keynote speech at ForSe2011, the poor must be “asset creators”. It’s not just about selling to the BoP, it’s about letting them sell to us as well. This means that when we drive products, information, thoughts, and opinions to the BoP, we should allow the flow to be reciprocated. Everything that flows “down” must flow back “up” for a sustainable cycle. This includes money, information, and social capital.

In that 2010 post, we also looked at the demonstrated market growth for mobile phones. We consistently monitor the penetration rates of mobile phones in emerging markets. The World Bank Database is a reliable resource, currently offering data through 2009. Based on that data, we projected the penetration rates for 2010 and 2011(using a conservative diminishing returns formula for the falling year-on-year growth averages). The chart below shows the number of mobile phone subscribers per 100 people in Latin America & the Caribbean, India, and Sub-Saharan Africa. We compared these three emerging market regions with the United States, the European Union, and the world as a whole.

Mobile Subscriptions per 100 Inhabitants

Even at slowing growth rates and our conservative estimates, we can see that access to mobile technology in the developing world has increased tremendously over the past decade. Now, social entrepreneurs are leveraging these high penetration rates to create businesses and wealth that enable sustainable development. Muhammad Yunus, Nobel Peace Prize winner and founder of Grameen Bank, famously said: ”When you get a mobile phone it is almost like having a card to get out of poverty in a couple of years.” There are a variety of tools, applications, and services that mobile technology provides to empower the BoP and, here at ID, we strive to understand each of them.

Over the next few weeks, we will post the different examples of mobile transaction systems and the ways they empower the world’s poorest citizens by creating exchanges. Up first on the agenda is Mobile Money Transactions, check back next week for the first examples.

Update:
Part 2 - Mobile Money
Part 3 - Information
Part 4 - Social Capital

Friday, October 21, 2011

Weekly Review October 17-21

Source: Wikimedia Commons

This week we’re highlighting the importance of enterprise level development and impact investing in India. Several newsworthy excerpts describe the myriad opportunities emerging from the growth of social enterprises, impact investing, and the use of technology in the region.

“Could impact investing help India’s poor” by Shilpa Kannan on BBC News, Delhi

A massive existing population in India coupled with robust economic growth expectations and a changing investor appetite for disruptive innovation in emerging markets has driven growth in social enterprises opportunities. Impact investors are seeking cutting edge local entrepreneurs and business innovators in India for the development of the region. In late 2010, JP Morgan was one of the first to formally acknowledge that this sector is more than an emerging trend but rather a unique and emerging asset class all its own, a notion that supports the Times of India Social Impact Awards. As the article reports, it is becoming increasing clear that the potential and support for impact investing in India is huge. This investment class is both a solution for the risk-averse private sector and compliments the already exhausted resources coming from many governments and donors.

“Cheap tablet computer leads India’s drive to tackle rural poverty” by Charles Arthur on The Guardian

The Indian government is buying £30 tablets, the “Aakash,” from a British manufacturer, DataWind. The government will use the tablets to supply rural schools and universities with modern technology “to help lift villagers out of poverty.” This is an effort to get 220 million children of India online and close the gap between the burgeoning rich and the underserved poor. Currently, “only 7% of Indians graduate from high school” and the government aims to increase enrollment to 30% by 2020. DataWind tablets enable teachers to access important teaching resources and give students a taste of technology.

“How billions without electricity will benefit from clean energy” by Charles Kenny on Grist

“Just as many [governments] in developing countries skipped landlines and went straight to mobile phones,” many developing countries will also skip coal and go straight to clean energy. Clean technology and alternative energy sources are the competitive choice for under electrified countries in emerging markets. Especially in India, where the population is so large, the benefits of clean and safe energy sources will be significant. For example, there are about 2.5 million burn cases in India alone each year due to the use of kerosene lamps. Also in India, solar panels are priced around $300, the equivalent of a year’s supply of kerosene. Strengthened with innovative financing solutions like the Simpa Regulator Simpa Networks, India may reach its goal to produce 15% of its total energy from renewable sources by 2020. With the support of the public sector and the private sector, the second most populous country in the world can electrify the country with sustainable solutions.

“Aavishkaar raises $62 Million in Series D Funding” on Silicon India

Aavishkaar, a Mumbai-based venture capital firm, has raised a new $62 million fund that will focus on early-stage firms serving the base of the pyramid in India. In a similar fashion to Invested Development, Aavishkaar India emphasizes the importance of solutions that are affordable and scalable. The fund will serve a wide range of industries in India, including: healthcare, water and sanitation, education, agriculture, and renewable energy. VineetRai founded Aavishkaar in 2001 with the vision of enabling and harnessing the entrepreneurial spirit found at the base of the pyramid to promote sustainable and self-sufficient economic development.

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Monday, October 17, 2011

EGG-Energy Development Innoventures Salon

A few months ago, we highlighted EGG-energy's innovative pricing and distribution strategy for the Base of the Pyramid. If you like EGG-energy's business model or discussing BoP strategies in general, then we recommend attending EGG-energy's upcoming brainstorm session in Cambridge, MA, hosted by the Development Innoventures Salon. The session will open the conversation around three main topics:

Pricing Strategy
Marketing and Sales Strategy
Growth and Distribution Strategy

It's important for EGG-energy to grow sustainably and scale its model in order to create maximum impact in the vastly unelectrified Tanzania. Less than 10% of the Tanzanian population has access to reliable energy. EGG-energy's business has the capacity to change that with a "portable grid." The key is being able to offer scalable and affordable solutions with a low upfront cost.

If you're interested in the for-profit social enterprise space, the BoP, innovation for development, and a "Netflix for batteries" business model, then please attend the brainstorm session on Thursday, October 20th at 6:30 pm. Details are registration information are available here.

About Development Innoventures Salon:

"DEVELOPMENT INNOVENTURES SALON is a new forum bringing together Boston's Innovation-for-Development community. We brainstorm with emerging impact entrepreneurs attempting novel market- or technology-based solutions to intractable problems in the developing world. Salon participants problem-solve around key challenges these innovators face in launching and scaling their enterprises. The SALON aims to convene a multidisciplinary group of entrepreneurs, visionaries, business professionals, development professionals, investors, practitioners, technologists, academics, students, and polymaths."

Friday, October 14, 2011

Weekly Review October 10-14

A cornerstone of Invested Development’s strategy is that mobile phones facilitate information, participation, and transactions in emerging markets. This week’s articles demonstrate examples of how mobile phones can do so.

“Mobiles: The Hub of a Global Information Society” by Melissa Ulbricht on Mobile Active

Like us, Mobile Active is a proponent of the basic feature phone’s potential for impact by distributing information. A new report, “News on the Go: How Mobile Device Are Changing the World’s Information Ecosystem” by the Center for International Media Assistance (CIMA) discusses and examines how the implications that mobile penetration has for politics, education, economies, society, and most importantly, the global disbursement of news and information. The report focuses on smartphones, but Mobile Active smartly lists a collection of case studies focused on more basic phones. Both smartphones and more basic phones create opportunities as Mobile Active and CMIA demonstrate in their publications. Check out the Mobile Media Toolkit for case studies focused on basic phones and download the CIMA report to get a sense of the impact, no matter what kind of phone.

“Reach the Next Billion Through Mobile” by Grant Tudor on Next Billion

Nathan Eagle, a local MIT professor and co-founder and CEO of Jana, was profiled in The Economist in January and more recently in Next Billion as a “radical innovator capitalizing on the rapid and broad-based distribution of mobile technology.” Jana, formerly Txteagle, is a mobile-phone-based platform that allows global organizations to reach and engage consumers in emerging markets. Jana has Research and Marketing arms across 80 developing countries, allowing consumers to actively participate and leverage their own influence over the market. Jana allows businesses to collect data on the wants and needs of their target markets at the BoP by distributing surveys on mobile phones and offering a promotional incentive for doing so. In the case of Jana, mobile phones change the way we look at and do business with BoP markets.

“The African Laptop Killer: Android and the Developing World” Claire Hunsaker’s presentation at Android Open 2011

Claire Hunsaker, Director of Marketing and Client Services at Samasource!, presented at the Android Open 2011 on mobile ubiquity’s impact in Kenya. Claire discusses how the ubiquitous presence of mobile phones contributes to the lifestyle of everyday Kenyans. Notably, cheap Android phones called “Kenya phones” are slowly rising in popularity in the market. Most importantly, she points out that 99% of new-paying Internet users access the web on their mobile phones. Hunsaker and Samasource!’s work focuses on the use of mobile phones for information, payments, and networking. This is a philosophy we share at ID. For example, the Mobile Media Toolkit and the Open Data Kit, accessible on a mobile phone, promote citizen journalism. For more examples on how information distribution is made possible through mobile phones in addition to payment and networking opportunities, watch her whole presentation and follow Samasource! on Twitter.

“A powerful combination: Radio and SMS promote open dialogue in Chad and Niger” by Prairie Summer and Lucy Lyon posted by Ken Banks of National Geographic Emerging Explorer on National Geographic News Watch

Prairie Summer and Lucy Lyon of Equal Access International (EA) leverage the technology developed by FrontlineSMS to educate and empower the BoP through media and community mobilization. That is to say, with mobile technology, they facilitate participation and information transactions. FrontlineSMS is a valuable tool for NGOs that allows group texting and two-way communication on a large scale. EA hosts six radio programs in Chad and Niger and communicates with its listeners using the FrontlineSMS technology. This allows the listeners to participate, share their views, and get their questions answered using a tool that is readily available. Check out the article to read first-hand accounts of user participation.

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Wednesday, October 12, 2011

WANTED: The World’s Most Unreasonable Entrepreneurs

Convinced you have the entrepreneurial mettle to improve the lives of millions of people around the world? Accelerate your venture with mentorship from 50 seasoned entrepreneurs and practitioners, ranging from a Time Magazine Hero of the Planet, to the CTO of HP, to an entrepreneur who’s lifted over 19 million farmers out of poverty. In the process, form relationships with 20 impact funds including Invested Development and our friends Acumen Fund, Good Capital, and First Light Ventures and pitch to hundreds of prospective partners and funders. Do it all while living under the same roof in Boulder, Colorado for 6 weeks with 25 entrepreneurs dedicated to defining progress in our time! Apply by November 10, 2011 to attend the 2012 Unreasonable Institute!

Watch the Unreasonable Trailer to see what its all about!
See an overview of the 2012 Unreasonable Institute!
ID Founder, Miguel Granier, participated as an Unreasonable Mentor and a Capital Partner in 2009 and 2010. View his Unreasonable profile here.
Download the press release here.

Friday, October 7, 2011

Weekly Review October 3-7

Last week we spoke to the impact that mobile technology can have for development. For the same reasons, our other investment focus is alternative energy. While alternative energy is traditionally expensive, many social entrepreneurs are creating clever financing models that deliver clean energy at an affordable price. The following articles detail why and how alternative energy can create such a significant impact at the BoP in emerging markets.

Source: Simpa Networks

“Could a Pay-as-You-Go Model Convince People to Go Solar?” by Sarah Laskow on GOOD Magazine

GOOD Magazine spotlights Paul Needham, co-founder of Simpa Networks, our portfolio company, and a member of the Class of 2011 PopTech Social Innovation Fellows. Paul understands that solar energy incurs an upfront cost that is too high for most users. So he and the team Simpa created the Simpa Regulator, which allows users to pay for the cost of a solar home system over time. Simpa smartly pegs its prices to be the same as kerosene, which most people at the BoP use for energy. This way, the Simpa Regulator not only delivers energy affordably, but it also delivers clean energy that isn’t damaging to personal health or the environment. Even better, Simpa’s light from SELCO-India’s solar panels is brighter than a kerosene lamp. Consumers get a safer and longer-lasting energy source for the same up-front price and ultimately spend less money over time.

“Pay-As-You-Go Makes Solar Accessible in Emerging Markets” by Sami Grover on TreeHugger

Simpa is not the only company offering pay-as-you-go models. A company called Eight19 creates solar film – or printable solar panels. In partnership with Solar Aid, the pair has developed IndiGo, a charging technology that is specifically designed to be affordable for the BoP. Users can add credit to their IndiGo box by using the codes sent to their mobile phones after purchase. Like Simpa’s Regulator, this model allows users to pay for their energy over time without the initial upfront cost.

“Impact Investing in Energy Enterprises: A Three-Act Play” by Christine Eibs Singer, Executive Summary on the E+Co Blog

Christine Eibs Singer, the co-founder and CEO of E+Co, recently published a case study for the MIT Innovations Journal’s latest edition - SOCAP11: Impact Investing Special Edition. An executive summary is available on the E+Co blog. In the Case Study, Singer looks at the different stages that E+Co has gone through, and how the organization got to where it is now. E+CO started before “impact investing” was a buzz word. Despite the merge of impact-focused funding vehicles, the goal has always been to help energy enterprises grow and prove their worth, and ultimately create impact for the BoP. The full journal is available on Amazon and contains articles from many other industry experts including Kevin Doyle Jones, Phillip Auerswald, Antony Bugg-Levine, Mario Morino, and Ross Baird.

“Nepal on track to achieve MDGs: PM” on The Himalayan Times

The UN’s Millennium Development Goals seek to halve poverty by 2015. The Prime Minister of Nepal, Dr. Baburam Bhattari, noted that his country’s achievement of the MDGs is largely hindered by energy poverty, and in a broader sense, a lack of technology and innovation. Energy poverty occurs when there is limited or no access to electricity for cooking, heating, cooling, and/or lighting. Many people at the BoP in Nepal use unsustainable and harmful energy sources like kerosene. The Prime Minister addressed the “Sustainable Energy for All: Water, Food, and Energy Security” session at a UN Roundtable, where he suggested that the Nepalese government is accelerating efforts to scale sustainable energy solutions to fight against poverty.

“Can Microgrids Eliminate Energy Poverty?” by Christine Hertzog on The Energy Collective

A staggering 2.4 billion people in the world live in energy poverty - a way of life that is very unfamiliar to us in the United States. Almost a third of the world’s population lives with very limited or no access to electricity. This means that the time they can spend working or studying is limited, and it affects everything from cooking to communication to refrigeration. In other articles this week we discussed pay-as-you-go solar as a solution. Another solution to help bring energy access to the BoP is microgrids. General MicroGrids, Inc. is a company founded by Terry Mohn who is also the Co-Chair of the UN Foundation’s MicroGrid Work Group. He hopes that the company can deliver affordable and renewable energy to eliminate energy poverty and contribute to the goals outlined by the UN Campaign of Sustainable Energy For All. The three main goals that the UN is promoting to achieve by 2030 are: “1) Achieve universal access to modern energy serves; 2) improve global energy intensity by 40 percent; and 3) Produce at least 30 percent of the world’s energy from renewable sources.” Microgrids , according to Mohn, are a technological answer and solution that can meet the UN’s goals for energy.

Monday, October 3, 2011

Good News in the Portfolio

As we wrote about in a recent post, Cents and Responsibility, investors have a responsibility to entrepreneurs. The Weekly Review prior to that post highlighted the close relationship an entrepreneur must have with the investor to enable productivity and progress. We live by our own words. We have a close relationship with each of our portfolio companies and stand by them on both the highest of highs and lowest of lows. Although we don’t want our entrepreneurs to become self-licking ice cream cones, we can’t help but be excited for them when they are rewarded for their hard work. This week we’ve heard some great news all around and we’d like to share it with you.

Frogtek’s Tiendatek platform for micro entrepreneurs in Latin America won €150,000 (US$206,000) in Vodafone’s Mobile Clicks Competition 2011. Vodafone Mobile Clicks is an international contest for mobile start-ups. Frogtek made it through three rounds of judging based on the criteria of 1) originality, creativity, innovativeness, 2) technical and operational feasibility, 3) economic and financial viability, 4) value to end-users and 5) the quality of the management team. Frogtek’s target market is bottom-of-the-pyramid shopkeepers in Latin America; Tiendatek provides the shopkeepers with a valuable resource to enable them to manage inventory and sells and make smarter purchasing decisions. Venture Beat on the New York Times highlights Frogtek’s software and its prize here. The following video is an interview with Frogtek’s CTO, Guillermo Caudevilla.

Paul Needham, co-founder and president of Simpa Networks, has been named a member of the Class of 2011 Pop!Tech Social Innovation Fellows. This is an esteemed honor for Paul who has worked hard to create impact in India with the development of the Simpa Regulator, which makes solar home systems “radically affordable” for those living in energy poverty. The PopTech Social Innovation Fellows Program will give Paul and the other fellows the opportunity to connect and take advantage of “tools, insights, and [a] social network that can help them scale their impacts to new heights.”

Friday, September 30, 2011

Weekly Review September 26-30

People often ask us why we chose technology as our investment focus. The answer is quite simple: technology has the greatest potential to create impact in the developing world. The following articles for this week share our sentiment and speak to mobile technology’s power for social impact (be sure to check out next week’s Review to see how alternative energy is creating impact).

Source

“Mobile Broadband in Kenya” by Patrick Munyi on iHub Blog

Kenya has been the shining star of mobile technology innovation in Africa, largely fueled by high mobile penetration and the installation of undersea fiber cables in 2009. The folks at iHub Nairobi have collected data regarding mobile technology and mobile broadband usage in Kenya. They have found that broadband speeds are increasing alongside the number of users and that most access the Internet with their phone; “98% of mobile subscribers use mobile internet.” More important are the affects mobile Internet will have on the Kenyan economy. iHub writes, “It is predicted that mobile broadband can potentially increase national productivity and growth by up to 15%.” Access to mobile phones, and therefore mobile broadband, will made a significant improvement in the continued development of Kenya.

“Crises in the Digital Age” by Michael Fertik, CEO and Founder of Reptuation.com, on World Economic Forum Blog

Michael Fertik reflects on the attitude world leaders had on Internet at the World Economic Forum in Davos this year. All agreed and wanted to know more about how the Internet “spreads information, misinformation, rumor, innuendo, and fact.” While the Internet can cause a stir, the information it channels to underserved populations is critical. Fertik writes of the impact the Internet has in times of crisis or disaster. We agree that technology creates impact by absorbing and transmitting information, and add that it doesn’t just have to be in times of crisis.

“2011 Most Influential Women in Technology - Katrin Verclas” by E.B. Boyd on Fast Company

Katrin Verclas, founder of MobileActive.org, has been honored as one of the most influential women in technology this year. Her site is a “hub for people around the world who are building tools for mobile phones that make a difference.” Her site unites the large community of technology innovators who are working to create technologies that empower the world’s underserved populations. This way, innovators can share their experiences and expertise to create affordable and scalable products and services for the underserved. By promoting the development of applications and mobile technologies, we can leverage mobile ubiquity to create social impact. Congratulations to Katrin Verclas and thanks for propelling the technology for impact space forward.

“HP Invests for Growth in Africa; New operations in 10 countries bring transformative technology solutions to help drive sustainable, long-term growth” Press Release from HP on Market Watch

It’s not just small social enterprises that have caught on the potential at the BoP and technology’s power for impact. The IT giant Hewlett-Packard (HP) is expanding its operations in Africa with 10 new entities throughout the continent. Business customers, governments, and individuals will have improved access to HP’s hardware and software. Governments especially will be able to leverage HP technology “to drive economic growth by modernizing the delivery of services in key areas such as education, healthcare, and e-Government services.” By penetrating the market, HP will drive increased adoption of technology and promote sustainable economic development. HP’s presence alone will create jobs and stability throughout their communities. HP also has plans for many other initiatives to collaborate with universities, innovate in African education and extend social innovation programs.

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Thursday, July 14, 2011

Opportunity in Egypt

Cairo's Tahrir Square during the Revolution via Wikimedia Commons

After the Egyptian Revolution of 2011, a man named his daughter “Facebook” in honor of the site’s mobile app and the role it played. On Twitter, #jan25 was trending for weeks, as Egyptians tweeted from their phones to report on the protests. Despite the government’s best efforts to cut off communications, protesters were able to organize through mobile technology. It’s clear that few places in the world have experienced such a dramatic impact of social networking and mobile technology, but why this happened and what will happen next are less apparent.

Why Egypt?

Around the globe (and, in particular, across Africa) there are plenty of leaders who have overstayed their welcome. Yet few have been hit with an uprising as intense and well organized as the one that brought down Hosni Mubarak. A quick reflection on a few indicators highlights three intriguing variables that influenced Egypt’s unique revolution:

Economy - Egypt boasts the second highest GDP in Africa. This might sound like a counter to revolution, but it takes a certain level of development for citizens to organize. As Paul Collier described in Wars, Guns, and Votes: Democracy in Dangerous Places it also takes a minimum income level for people to afford political activism. Egypt’s comparatively robust economy provided both. At the same time, affluence is very poorly disbursed. An estimated 22% of the population lives below the poverty line, a staggering 44% are illiterate, and less than 10% have bank accounts.[1] The dangerous divide is common across emerging markets and has long been fodder for uprising.

Infrastructure - In a continent that has seen the fastest adoption of mobile phones in the world, Egypt’s mobile penetration is over 90%[2] and sources expect that Egypt will reach 100% mobile phone penetration by 2013[3]. Paraphrasing Gil Scott-Heron, the revolution was not televised. In Egypt it was broadcast via mobile social networking platforms and Egypt’s telecommunication infrastructure ensured that over 70 million of Egypt’s nearly 84 million citizens could tune in.

Unemployment - Joblessness cuts three ways. First, it creates anger and desperation as people struggle to afford basic needs. Second, losing a job removes much of the recourse that dissuades people from illegal or banned activities. Finally, it provides the time to gather. In Egypt, nearly 9.4% are officially unemployed[4] and unofficial numbers are likely much higher. More importantly (in this scenario), nearly 90% of the unemployed are under 30 years old.

The confluence of a vast unemployed youth with existing infrastructure to coordinate undoubtedly played a role in the successful deposition of Mubarak. The same attributes are also creating a tremendous opportunity for entrepreneurs and impact investors to influence Egyptians’ success in rebuilding.

Where to Next?

The good news is that there is untapped potential for investment and development in Egypt. Despite relative economic wealth compared to its Sub-Saharan neighbors, many problems remain and investment in entrepreneurship, technology, and the country’s youth will shape the future.

Social entrepreneurs can harness the mobile technology that was so dramatically influential during the revolution to promote sustainable economic development and make lasting social impact. It’s proven that for-profit social enterprise can play a significant role in post-conflict resolution. As a study of post-war Bosnia-Herzegovina showed, business and workplaces contribute to community development and “rebuilding post-conflict societies” better than volunteer organizations[5]. Although traditional investors may find post-conflict areas too risky, the potential for impact investors to reap both financial and social returns is too great to ignore.

In Egypt, entrepreneurs have an amazing opportunity to create for-profit social enterprises that develop and distribute new mobile technologies, that combat the unique issues their fellow countrymen face. Illiteracy, unemployment, and financial access (click on the issues to see examples of mobile technologies that have been developed to combat each issue) all have benefited from the emergence of mobile devices. Both the need and the demand exist and thanks to the existing telecommunications infrastructure, the solutions already lie at the fingertips of 90% of Egyptians.

[1] http://thedailynewsegypt.com/banking-a-finance/transfers-ready-but-full-fledged-mobile-banking-to-take-longer-in-egypt.html

[2] http://www.egyptictindicators.gov.eg/en/pages/Publications/PublicationsDoc/Eng%20Flyer-April-%20last.pdf

[3] http://english.ahram.org.eg/~/NewsContent/3/12/14445/Business/Economy/Going-mobile-Egypt-gears-up-for-cellphone-banking.aspx

[4] http://data.worldbank.org/country/egypt-arab-republic

[5] http://pmpick.people.wm.edu/research/EthnicRacialStudiesPickering.pdf

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Friday, October 14, 2011

Wednesday, October 12, 2011

Friday, October 7, 2011

Monday, October 3, 2011

Friday, September 30, 2011

Thursday, July 14, 2011