BAEP 460: V
Venture Investin
ng for Impact BAEEP 460: Vent ure Investingg for Impact Syllabus – Springg 2013 – Thurrsday – 6:00‐‐7:50p.m. om: Hoffman
n Hall 304 Roo
Adju
unct Professo
or: Fran Seeggull Offiice: Bridge H
Hall One Offiice Phone: 2113‐740‐0641
Emaail: seegull@
@marshall.uscc.edu Offiice Hours: Th ursday – 4:300‐5:30 p.m. Course De
escription Social enttrepreneurs create venture
es that delive
er financial re turns, as well as positive ssocial and environmental impact. Through fin
nancial inclusiion, health, e ducation, susstainable agriculture, clean
n water and
d other impacct themes, social entrepreneurs use forr‐profit busineess models to
o address thee world’s m
most intractab
ble problems. How do sociial entrepren eurs structurre their enterprises and develop their impact thesis? How tto they go abo
out raising caapital from im
mpact investors at each staage of their deve
elopment from seed stage through exitt? What are ssome non‐financial resourrces that are available tto social entrrepreneurs se
eeking capital? And from the impact in
nvestor’s persspective, how
w are deals soourced, assessed, due diliggenced and executed?? How is this type of invessting different from typicaal angel, ventu
ure and strateegic investingg? Is there a tradeoff betwe
een financial rreturns and im
mpact? And hhow are impaact returns measured, repo
orted and assesssed? This class is designed for students w
who seek to b
become sociall entrepreneu
urs and thosee who seek to
o invest in ssuch venturess. Class will iinclude business case studdies, live case studies, guesst lecturers, student‐le
ed impact fasst pitch presentations and student‐led vvirtual impactt fund capitall allocation. Objectives Learning O
By the end of the course, students w
will achieve the following learning objeectives:  Command a baasic understanding of impaact investing including keyy terms, concepts and playyers  Articulate the pros and cons of new corp
porate forms that may be suited for impact ventures  Analyze impacct metrics, me
easurement aand reporting schemes  Evvaluate a range of investm
ment capital o
options and reesources  Analyze a live e
entrepreneurr pitch from the impact invvestor’s persp
pective 1 BAEP 460: Venture Investing for Impact 
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Conduct basic due diligence on an impact venture Assess various exit opportunities for impact ventures Fast pitch an impact venture to student‐investors Allocate a virtual impact investment fund Course Policies Course structure, assignment and required readings for each class session appear below. In addition:  Classroom Culture: Our classroom dialog will be an essential part of the learning experience. Please complete the assigned readings, guided by the study questions, and be prepared to engage in discussion. Class will start promptly at 6pm. Please treat class start time like you would a meeting start time. Be in your seats with your electronic devices turned off and your name cards displayed by 6pm each class session.  Guest Speakers: Please treat our guest speakers with the respect that they deserve. Please do not be late to guest speaker sessions.  Assignments: Assignments must be submitted in hard copy in class and in soft copy through Blackboard by the respective due dates and times cited below. Late assignments will receive a point reduction. Further information on grading, tests, point reductions and assignments appears below.  Course Notes: Lecture slides will be posted on Blackboard after they are shown in class. It may take up to a week for slides to be posted. Regardless, it is important to take notes during class on the material presented.  Electronics: Laptop, iPad and cell phone usage is not permitted during class. If someone has a special reason for required technology usage in the classroom, please email me to discuss.  Name Cards: Please make a name card displaying your first and last names and bring it to every class session. It should be legible from the front of the classroom.  Communication: Blackboard and email are the most effective way to communicate outside of class. Please check regularly for messages and additional course materials. Grading Policies Grading Element Format % Course Grade Points Mid‐term Exam In class 20% 200 Impact Investing Assignment Take home 25% 250 Team Impact Fast Pitch In class 25% 250 Final Assignment Take home 30% 300 Total 100% 1,000 Your final grade represents how you perform in the class relative to other students. Your grade will not be based on a mandated target, but on your performance. Three items are considered when assigning final grades: 1. Your average weighted score as a percentage of the available points for all assignments (the points you receive divided by the number of points possible). 2 BAEP 460: Venture Investing for Impact 2. The overall average percentage score within the class. 3. Your ranking among all students in the class. Point Reductions for Late Assignment Submission Point penalties for last assignments are as follows:  Assignments turned in after the due date and time, but within 24 hours of the due date and time will lose 10% of the total points possible. • Assignments turned in later than 24 hours after the due date and time, but before 48 hours after the due date and time will lose 20% of the total points possible. • No papers will be accepted 48 hours after the due date. If you are excused or must be absent for a class session, a hard copy of your work must be delivered to the Greif office at Bridge Hall One and a soft copy must be uploaded to Blackboard before the due date and time in order for the assignment to be considered on time. Grading Element Descriptions and Student Evaluation For further details about the assignments and final, please refer to the Class Schedule below. Mid‐term exam (in class) Maximum of 20% or 200 points: The mid‐term will be an in‐class, closed book written exam designed to test your understanding of key terms and concepts discussed in class and covered in the readings up to the mid‐term date. Short answer questions will be assigned explicit point values. Partial credit will be awarded. Exams will be handed in at the end of class. No make‐up exams will be offered. Impact Investing Assignment (take home) Maximum of 25% or 250 points: Students will read and analyze the Acumen Fund cases A and B and answer assigned questions (case and questions cited below). Assignment may be no more than 2 pages, with 1½ line spacing and must be in Times New Roman font size 10. In the header for each page, you must put “BAEP 460: Impact Investing Assignment” left justified and your full name right justified. In the footer, you must list page numbers. The soft document must be named as follows: Last Name – BAEP 460 Impact Investing Assignment 2013.month.day. Questions must be referred to by number or cited in full, but either way, answers must respond directly to questions. Partial credit will be awarded. But, you will not receive credit or partial credit for answers to questions that appear elsewhere in your document—for example, if you answer part of question 1 in the answer to question 2. Team Impact Fast Pitch (in class) Maximum of 25% or 250 points: There will be one team assignment in this class—an impact venture fast pitch at the end of the semester designed to simulate a social entrepreneur’s presentation to investors. Teams will select an impact venture from a provided list on a first come first serve basis and will develop a fast pitch with explicit weekly milestones and deliverables throughout the semester (cited below). A five year pro forma income statement will be generated by each team in order to provide context for the fast pitch, but I will offer guidance on how to streamline this portion of the assignment. Each team 3 BAEP 460: Venture Investing for Impact will present at the end of the semester and will answer questions from student‐investors. Teams will be assigned by me during the first class session. Students will be graded as a team based on the quality of the presentation document, strength and clarity of presentation style and response to student‐investor questions. Final (take home) Maximum of 30% or 300 points: Students will be asked to allocate a virtual $1 million impact investment fund among the presented student impact ventures, exclusive of their own team’s. Specific questions are cited below. Final may be no more than 3 pages, with 1½ line spacing and must be in Times New Roman font size 10. In the header for each page, you must put “BAEP 460: Final” left justified and your full name right justified. In the footer, you must list page numbers. The soft document must be named as follows: Last Name – BAEP 460 Final 2013.month.day. Questions may be referred to by number or cited in full, but either way, answers must respond directly to questions. Partial credit will be awarded. But, you will not receive credit or partial credit for answers to questions that appear elsewhere in your document—for example, if you answer part of question 1 in the answer to question 2. Required Reading • The Course Reader is available from the Harvard Business School Publishing website: forthcoming. • Bugg Levine, Antony, and Jed Emerson. Impact Investing: Transforming How We Make Money While Making a Difference. San Francisco: Jossey‐Bass, 2011. May be purchased through Amazon. • All other readings will be posted on Blackboard. Select documents will be uploaded and others including reports, articles, blog posts and videos may be found online through the cited urls. Recommended Preparation The following reading/viewing is recommended for those students who have not taken entrepreneurship, finance and entrepreneurial finance courses:  Recommended readings and videos o Berman, Karen, Joe Knight and John Case. “Cracking the Code of the Income Statement.” Financial Intelligence for Entrepreneurs, Boston: Harvard Business Press, 2008. HBSP course reader. o Berman, Karen, Joe Knight and John Case. “Understanding Balance Sheet Basics.” Financial Intelligence for Entrepreneurs, Boston: Harvard Business Press, 2008. HBSP course reader. o Sahlman, William. “How to Write a Great Business Plan.” Harvard Business Review, July‐
August 1997. HBSP course reader. o “Financial Planning/Budgeting.” MaRS Discovery Center. http://www.marsdd.com/sessions/financial‐planning/  Additional preparatory videos o Pick and choose videos based on subjects of interest: Entrepreneurship 101, MaRS Discovery Center. http://www.marsdd.com/entrepreneur‐toolkit/entrepreneurship101/ 4 BAEP 460: Venture Investing for Impact BAEP 460: Spring 2013 Class Schedule/Readings/Study Questions/Assignments Deliverables and tests appear in bold and underlined text below Date Week 1: 1/17 Week 2: 1/24 Topic Course Overview and the Nature of Value Impact Investing Overview Readings, Study Questions and Additional Assignment Information Suggested Reading/Video for First Class
 Friedman, Milton. “A Friedman Doctrine—The Social Responsibility Of Business Is to Increase Its Profits.” New York Times Magazine, September 13, 1970.  Fox, Justin. “The Social Responsibility of Business Is to Increase ... What Exactly?” Harvard Business Review Blog, April 18, 2012. http://blogs.hbr.org/fox/2012/04/you‐might‐disagree‐with‐
milton.html  Szaky, Tom. “The Role of Profit in a Social Business.” New York Times blog, January 7, 2013. http://boss.blogs.nytimes.com/2013/01/07/the‐role‐of‐profit‐in‐
a‐social‐business/  McGlasson, Dr. Mary J. “Episode 32: Externalities.” Uploaded January 14, 2011. http://www.youtube.com/watch?v=yC5R9WPId0s Study Questions for Suggested Reading  What is Milton Friedman’s argument about the purpose of business?  What do you think is the purpose of business?  Can positive and negative externalities be priced? What are some examples of ones that can and can’t and why?  Chapters 1, 2 and 5 in: Bugg Levine, Antony, and Jed Emerson. Impact Investing: Transforming How We Make Money While Making a Difference. San Francisco: Jossey‐Bass, 2011.  Freireich, Jessica and Katherine Fulton. “Investing for Social and Environmental Impact.” Monitor Institute, January 2009. http://www.monitorinstitute.com/downloads/what‐we‐
think/impact‐investing/Impact_Investing_Exec_Summary.pdf  Optional Reading o Emerson, Jed and Tim Freundlich. “Invest with Meaning: An Introduction to a Unified Investment.” ImpactAssets Issue Brief Series, 2011. http://www.impactassets.org/files/downloads/ImpactAs
sets_IssueBriefs_1.pdf Study Questions  What is impact investing?  What is “impact first” and “financial first” investing? (Monitor)  What are the key opportunities for growth in impact investing? What are the key challenges? Which growth opportunity is most compelling to you and why? Select a First and Second Choice Impact Fast Pitch Company—First Come, First Serve  Alter Eco Foods: http://www.alterecofoods.com/ Assignments
For those that choose to do the suggested readings, be prepared to discuss your thoughts on the study questions in class. Teams will be assigned for the group impact fast pitch project. Complete readings and be prepared to discuss your thoughts on the study questions in class Impact fast pitch milestone #1: With your assigned team, research and select an impact venture from the list at left. Please select a second choice as well. 5 BAEP 460: Venture Investing for Impact 
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Week 3: 1/31 Impact Metrics, Measure‐
ment and Reporting 
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Angaza: http://www.angazadesign.com/ EcoScraps: http://ecoscraps.com/ Fenugreen: http://www.fenugreen.com/ Global Cycle Solutions: http://gcstz.com/ Kickboard: http://www.kickboardforteachers.com/ Srvajal: http://www.sarvajal.com/about/ Sustainable Health Enterprises: http://www.sheinnovates.com/ Waste Enterprisers: http://www.waste‐enterprisers.com/ Chapter 8 in Impact Investing book. Impact Reporting and Investment Standards website, http://iris.thegiin.org/. Please explore the About and Metrics tabs. BOP Access Company Sample IRIS Report, http://iris.thegiin.org/report/bop‐access‐company
Global Impact Investing Reporting Standard website, http://giirs.org/. Please explore the About GIIRS tab. Global Impact Investing Reporting Standard Quarterly Analytics Report, Q3 2012. http://giirs.org/storage/documents/Press/giirs‐
analytics‐benchmarking‐q3‐2012_final_web.pdf Study Questions  What is the Impact Reporting and Investment Standards (IRIS)? What purpose does it serve?  What is BOP Access Company’s mission? How does the company make an impact? What IRIS metrics are they tracking? Do you think the company is making an impact based on this report?  What is the Global Impact Investing Reporting Standard (GIIRS)?  In what ways are GIIRS rated companies and investment funds creating an impact? How is the impact measured, reported and verified?  How could IRIS and GIIRS be improved? Week 4: 2/7 Discussion with an Early Stage Impact Investor Guest Speaker: Andy Lower, Executive Director, Eleos Foundation 
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“Chid Liberty Talks about Liberty & Justice.” Catalyzing Capital website, Eleos Foundation. http://www.catalyzingcapital.com/social‐entrepreneurs/chid‐
liberty‐talks‐about‐liberty‐justice/ “Sanergy: Building Sustainable Sanitation in Urban Slums.” Catalyzing Capital website, Eleos Foundation. http://www.catalyzingcapital.com/articles/sanergy‐building‐
sustainable‐sanitation‐in‐urban‐slums/ “Digital Divide Data: Empowering Talented, Poor Youth to be Skilled Leaders.” Catalyzing Capital website, Eleos Foundation. http://www.catalyzingcapital.com/articles/digital‐divide‐data‐
empowering‐talented‐poor‐youth‐to‐be‐skilled‐leaders/ Study Questions  Describe the Eleos Foundation’s mission.
Complete readings and be prepared to discuss your thoughts on the study questions in class. Impact fast pitch milestone #2 and DELIVERABLE: Have one teammate (a designated person with whom I can communicate) submit the team’s first and second choice impact fast pitch company names to me BY EMAIL by 3pm on January 30th. I will confirm team assignments in class based on the order of emails received. Complete readings and be prepared to discuss your thoughts on the study questions in class. Also, please prepare some of your own questions for the guest speaker. Impact fast pitch milestone #3: What is your venture’s impact thesis, 6 BAEP 460: Venture Investing for Impact 
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Week 5: 2/14 Corporate Structure and Continua‐
tion of Impact Metrics, Measure‐
ment and Reporting What is the Foundation’s approach to impact investing?
What is the impact thesis for each of the three ventures above? Do you think they are achieving the desired impact? Why or why not?
product/service offering, business model and target customers? Where is your company on the social enterprise/impact investing spectrum? How does your company or should your company measure impact? What IRIS metrics will you use? Chapter 6 in Impact Investing book. Marquis, Christopher, Andrew Klaber and Bobbi Tomason. “B Lab: Building a New Sector of the Economy.” Harvard Business School, September 28, 2011, 9‐411‐047. HBSP course reader.  B Corporation website. http://www.bcorporation.net/  Fruchterman, Jim. “For Love or Lucre.” Stanford Social Innovation Review, Spring 2011. http://www.ssireview.org/articles/entry/for_love_or_lucre Study Questions  What are the pros and cons of becoming a B Corporation? Of becoming a for‐benefit corporation? Of an L3C?  What are the key factors or variables that you would use to decide on how to structure a new impact investing entity?  What opportunities do for‐benefit corporations and L3Cs offer the entrepreneur and the investor? What concerns might investors have about investing in these types of entities?  How do you assess B Lab’s strategy and execution to date?  What role does GIIRS play in building the practice of impact measurement and reporting? Complete readings and be prepared to discuss your thoughts on the study questions in class Impact fast pitch milestone #4: What do you think is your company’s corporate structure? Describe and size the industry. What are the driving forces shaping the industry? Who are your competitors and how is your company differentiated? 
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Week 6: In‐Class Midterm Exam 2/21 Week 7: 2/28 Seed/Start Up Capital and Resources 
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Emerson, Jed, Tim Freundlich and Jim Fruchterman. “Nothing Ventured, Nothing Gained—Addressing the Critical Gaps in Risk‐
Taking Capital for Social Enterprise.” Said Business School, University of Oxford, 2007. http://www.sbs.ox.ac.uk/centres/skoll/research/Documents/No
thing%20Ventured.pdf Dichter, Sasha, Robert Katz, Harvey Koh, and Ashish Karamchandani. “Closing the Pioneer Gap.” Stanford Social Innovation Review, Winter 2013. http://www.ssireview.org/articles/entry/closing_the_pioneer_g
ap Complete readings and be prepared to discuss your thoughts on the study questions in class. Impact fast pitch milestone #5: Continue working on milestones #3 7 BAEP 460: Venture Investing for Impact 
Week 8: 3/7 Week 9: 3/14 Early Stage Funding #1 Early Stage Funding #3: Live Case Study Guest Speaker: Shivani Siroya, Unreasonable Institute Entrepreneur Deep Dives http://unreasonable.is/category/video/entrepreneurstories/ Study Questions 
What are the special opportunities and challenges of raising capital for impact ventures? 
What is the Pioneer Gap and how can it be filled? 
Watch 2‐3 Unreasonable Institute social entrepreneur videos (except for Waste Enterprisers which will be a team impact fast pitch). Be prepared to describe these 2‐3 ventures in class. What is the impact thesis for these companies? Would you invest in these companies and why? If not, why not? 
Chapter 4 in Impact Investing book. 
Roberts, Michael and Lauren Barley. “How Venture Capitalists Evaluate Potential Venture Opportunities.” Harvard Business School, 9‐805‐019, December 1, 2004. HBSP course reader. 
Gleason, Nick. “Raising Money from Double Bottom Line Investors: An Entrepreneur’s View.” Research Initiative on Social Entrepreneurship (RISE), Columbia Business School, September 2003. http://www.riseproject.org/gleason1.htm 
Khali, Olivia. “15 Social Venture Capital Firms That You Should Know About.” Cause Capitalism Blog, April 2, 2010. http://causecapitalism.com/15‐social‐venture‐capital‐firms‐that‐
you‐should‐know‐about/ 
Tristan. “130 Ways to Fund Your Social Venture.” Social Earth Blog, January 19, 2011. http://www.socialearth.org/130‐ways‐
to‐fund‐your‐social‐venture Optional Reading 
Sahlman, William and Evan Richardson. “The Changing Face of Angel Investing.” Harvard Business School, 9‐811‐046, November 16, 2010. HBSP course reader. Study Questions 
How do you think impact angels and venture capitalists assess companies differently than traditional capital sources? 
How important is impact alignment between investor and investee? 
Pick two venture capital funds from the lists in the readings that may be appropriate for your team’s impact venture over time. What is the investment strategy of each fund? Why do you think they would be a good match for your team’s impact venture? 
Chapter 3 in Impact Investing book. 
InVenture website. http://inventure.org/ 
Chhabra, Esha. “Imagine Trying to Get a Loan Without a Financial Identity.” Stanford Social Innovation Review Blog, December 21, 2012. http://www.ssireview.org/blog/entry/imagine_trying_to_get_a_
loan_without_a_financial_identity 
Vance, Jeff. “7 Hot Mobile Startups to Watch in 2013.” CIO blog, January 3, 2013. and 4. Through what strategies do you see the company growing over time? Complete readings and be prepared to discuss your thoughts on the study questions in class. Impact fast pitch milestone #6: Start developing a five year pro forma income statement, clearly citing assumptions and rationale for revenues, COGS and expenses. Start developing a high level growth plan, charting strategic milestones over the next five years. Complete readings
and research. Be prepared to engage with the guest speaker and discuss your thoughts on the study questions in class. Also, please 8 BAEP 460: Venture Investing for Impact InVenture http://www.cio.com/article/725277/7_Hot_Mobile_Startups_to
_Watch_in_2013?page=1&taxonomyId=3061 
Applegate, Linda, Michael Kerr and Alexis Brownell. “Pitching Business Opportunities.” Harvard Business School, 9‐811‐086, March 7, 2011. HBSP course reader. 
Tashev, Todor and Paula Goldman. “Venture Capital with a Twist: How to Pitch an Impact Investor.” HBR blog, January 9, 2013. http://hbr.org/special‐collections/insight/scaling‐social‐
impact/venture‐capital‐with‐a‐twist‐how‐to‐pitch‐an‐impact‐
investor Study Questions 
What is InVenture’s business model? What is the company’s impact thesis? 
Would you invest in Shivani’s current round of financing? Why or why not? 
What kind of capital raise would you expect Shivani to do next? What should her fundraising strategy be? 
What would you need to see (financial, operational, technical) as an investor to consider investing in her next round? 3/21 Week 10: 3/28 Early Stage Funding #2 
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Week 11: 4/4 Due Diligence Spring Break
Gompers, Paul. “Honest Tea.” Harvard Business School, 9‐201‐
076, October 17, 2011. HBSP course reader. Foley‐Wong, Bonnie. “Valuing a Company— Part 1.” “Valuing a Company—Part 2.” Pique Ventures Blog, June 8, 2012 and June 25, 2012. http://piqueventures.com/valuing‐a‐start‐up‐
company‐part‐1/ and http://piqueventures.com/valuing‐a‐
company‐part‐2‐social‐impact/ Dahl, Darren. “How to Read a Term Sheet.” Inc. Magazine, March 1, 2010. http://www.inc.com/magazine/20100301/how‐
to‐read‐a‐term‐sheet.html “Sample Preferred Term Sheet.” MaRS. 
Study Questions 
Is Honest Tea a social enterprise? What is the company’s theory of impact? How can this impact be measured? 
Do you think that Honest Tea should continue raising capital from angels or raise venture capital at this point? Why? 
How important is it that the capital they take on be mission aligned? 
Do you think that the company’s financial projections are reasonable? Why or why not?  Ebrahim, Alnoor and V. Kasturi Rangan. “Acumen Fund: Measurement in Impact Investing (A) and (B).” Harvard Business School, 9‐310‐011 and 9‐106‐043, 2010. HBS course reader.  Dichter, Sasha. “Investing in the Spread of Ideas.” Acumen Fund prepare some of your own questions for the guest speaker. Impact fast pitch milestone #7 and DELIVERABLE: Bring one hard copy of your team’s draft fast pitch PPT to class and have your designated team member submit a soft copy to Blackboard no later than the start of class. Please name the document: Company – Interim PPT 2013.month.day Complete readings and be prepared to discuss your thoughts on the study questions in class. Impact fast pitch milestone #8: Continue developing five year pro forma income statement, clearly citing assumptions and rationale for revenues, COGS and expenses. Determine the size and structure of your capital raise. Complete readings
and assignment. Be prepared to discuss the 9 BAEP 460: Venture Investing for Impact 
Week 12: 4/11 Growth/ Expansion Capital Blog, December 26, 2012. blog.acumenfund.org/2012/12/26/investing‐in‐the‐spread‐of‐
ideas‐sasha‐dichter Novogratz, Jacqueline. “Novogratz: People Want To Solve Their Problems.” Dow Jones Financial Advisor, December 26, 2012. http://live.wsj.com/video/novogratz‐people‐want‐to‐solve‐their‐
problems/E61616E6‐D153‐45C9‐BE8D‐
CFF243B0A252.html#!E61616E6‐D153‐45C9‐BE8D‐
CFF243B0A252 Assignment Review the Acumen Fund cases A and B and answer the below questions in no more than 2 pages, 1 ½ spaced, Times New Roman 10. Document naming and formatting requirements per Class Policies above. (250 points)  If you were Brian Trelstad, would you recommend to Acumen’s Investment Committee to invest in Ecotact? Why or why not? (85 points)  How about Meridian? Why or why not? (85 points)  How do you assess Acumen’s due diligence process? How could it be improved? (30 points)  What is your assessment of BACO as an impact measurement tool? (50 points) 
Olsen, Elizabeth. “Case Study: Can Honest Tea Say No to Coke, Its Biggest Investor?” New York Times, July 7, 2010. http://www.nytimes.com/2010/07/08/business/smallbusiness/
08sbiz.html 
Olsen, Elizabeth. “How Honest Tea Stood Up to Coke.” New York Times, July 14, 2010. http://boss.blogs.nytimes.com/2010/07/14/how‐honest‐tea‐
stood‐up‐to‐coke/ 
Kaye, Leon. “Honest Tea Ramps Up Commitment to Fair Trade.” Triple Pundit, December 20, 2012. http://www.triplepundit.com/2012/12/honest‐tea‐fair‐trade‐
csr‐report/ 
Lee, Paul. “Strategic vs. Traditional Investors: The Lowdown From a Venture Capital Vet.” Fast Company, October 8, 2009. http://www.fastcompany.com/1392582/strategic‐vs‐
traditional‐investors‐lowdown‐venture‐capital‐vet 
Cohen, Carl. “Should I Consider a Strategic Investor as a Source of Capital?” FindLaw, March 26, 2008. http://corporate.findlaw.com/finance/should‐i‐consider‐a‐
strategic‐investor‐as‐a‐source‐of‐capital.html Acumen cases in class. ASSIGNMENT: Upload soft copy to Blackboard and hand in hard copy of impact investing assignment (at left) by the start of class on April 4th. Please follow document formatting and naming convention cited in Class Policies. Impact fast pitch milestone #9: Continue to refine pitch, financials, structure of capital raise. Determine use of proceeds. Complete readings and be prepared to discuss your thoughts on the study questions in class. Impact fast pitch milestone #10: Continue to refine and practice impact fast pitch. Study Questions 
If you were the CEO of Honest Tea, would you have taken on Coke as a strategic investor? Why or why not? 
What advantages and disadvantages are there to this partnership? 
How would you have handled Coke’s demand about labeling? 10 BAEP 460: Venture Investing for Impact Week 13: 4/18 Exiting Impact Ventures Guest Speaker: John Ayliffe, impact angel investor (invited) 
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Weeks 14 & 15: 4/25 & 5/2 Student Team Fast Pitch and Student Investor Q&A “The Social Venture Exit Parts 1 and 2.” MaRS. http://www.marsdd.com/articles/the‐social‐venture‐exit‐part‐
1/; http://www.marsdd.com/articles/the‐social‐venture‐exit‐
part‐2/ “Balancing the Social/Environmental and Financial Returns in an Exit.” MaRS. http://www.marsdd.com/articles/balancing‐the‐
social‐environmental‐and‐financial‐returns‐in‐an‐exit/ Szaky, Tom. “Choosing Between Profits and Growth.” New York Times, August 25, 2011. http://boss.blogs.nytimes.com/2011/08/25/choosing‐between‐
profits‐and‐growth/ U, Elizabeth. “Social Enterprise, Exits, and Liquidity Events, Reimagining Money Blog.” RSF Social Finance Blog, September 7, 2009. http://rsfsocialfinance.org/2009/09/social‐enterprise‐
exits/ Vaccaro, Amie. “The White Dog Cafe: A Study of Social Business and Mission‐Aligned Exit.” Green Biz Blog, April 24, 2009. http://www.greenbiz.com/blog/2009/04/24/white‐dog‐cafe‐
study‐social‐business‐and‐mission‐aligned‐exit Abello, Oscar. “Exits for Impact Investment: The Key to Becoming Mainstream.” Next Billion, December 06, 2010. http://www.nextbillion.net/blogpost.aspx?blogid=2040 Study Questions  Describe one of the exits discussed in the readings. Do you think this exit was strategic financially? In terms of impact? Why or why not?  Can you think of an exit option that would have been more strategic in terms of preserving impact?  What might be the exit strategy for your team’s impact venture? Final Presentations: 25 minutes per team
 Each student‐entrepreneur team will conduct their impact fast pitch (see below for format): 10 minutes (200 points including 100 points for PPT and 100 points for fast pitch)  Student‐investors will ask questions and student‐entrepreneurs respond (must have broad participation by team members): 5 minutes (50 points)  Student‐investors will break out into small groups for discussion: 5 minutes  Student‐investors will say if they would invest and why or why not: 5 minutes  5/2: Course wrap up in remaining time Fast Pitch PowerPoint Outline Prepare 10 slide plus title page/10 minute fast pitch presentation on your team’s impact venture. Please develop one slide per topic below:  Title slide  Problem/situation and the solution/business concept  Impact thesis and commitment to measuring impact including IRIS metrics Complete readings and be prepared to discuss your thoughts on the study questions in class. Impact fast pitch milestone #11: Continue to refine and practice impact fast pitch. Impact fast pitch milestone #12 and DELIVERABLE: Finalize impact fast pitch and have one team representative post it to Blackboard no later than 2pm on April 24th. Please name the document: Company – Final PPT 2013.month.day. Once the presentation is submitted, it cannot be changed. 11 BAEP 460: Venture Investing for Impact Final Due 5/13 by 5pm  Industry size/growth/driving forces  Product/service description and target customers  Competitor analysis  Phased growth plan  Management overview  Pro forma income statement highlights (five year)  Form and amount of capital raise  Use of proceeds Final Paper  Situation: You are a fund manager with $1,000,000 to invest in the impact ventures pitched by student teams, excluding your own team’s venture.  Maximum of 3 pages with 1½ line spacing and Times New Roman 10. Document naming and formatting requirements per Class Policies above.  Develop a detailed rationale for allocating this virtual fund as follows: (300 points) 1. What kind of impact investor are you/where do you sit on the spectrum of impact and financial returns? Are you impact first or financial first and why? (50 points) 2. Which companies would you invest in? How much, with what structure and why? Be specific. (150 points) 3. What financial returns do you expect from each venture and over what period of time? Be specific. (50 points) 4. What impact returns to you expect from each venture and over what period of time? Be specific. (50 points) DELIVERABLE: Please upload to Blackboard your final paper by 5pm on May 13th. Please name the document: Last name – BAEP 460 Final PPT 2013.month.day. Marshall Guidelines Add/Drop Process In compliance with USC and Marshall’s policies classes are open enrollment (R clearance) through the first week of class. All classes are closed (switched to D clearance) at the end of the first week. This policy minimizes the complexity of the registration process for students by standardizing across classes. I can drop you from my class if you don’t attend the first two sessions. The last day to drop this class with a mark of "W" is April 12, 2012. Retention of Graded Coursework Final exams and all other graded work which affected the course grade will be retained for one year after the end of the course if the graded work has not been returned to the student. If I returned a graded paper to you, it is your responsibility to pick it up during class and file it, not mine. Technology Policy Laptop and Internet usage is not permitted during academic or professional sessions unless otherwise stated. Use of other personal communication devices, such as cell phones, is considered unprofessional and is not permitted during academic or professional sessions. ANY e‐devices (cell phones, PDAs, iPhones, Blackberries, other texting devices, laptops, ipods) must be completely turned off during class time. Videotaping faculty lectures is not permitted due to copyright infringement regulations. 12 BAEP 460: Venture Investing for Impact Statement for Students with Disabilities Any student requesting academic accommodations based on a disability is required to register with Disability Services and Programs (DSP) each semester. A letter of verification for approved accommodations can be obtained from DSP. Please be sure the letter is delivered to me (or to your TA) as early in the semester as possible. DSP is located in STU 301 and is open 8:30 a.m.–5:00 p.m., Monday through Friday. The phone number for DSP is (213) 740‐0776. For more information visit: www.usc.edu/disability. Statement on Academic Integrity USC seeks to maintain an optimal learning environment. General principles of academic honesty include the concept of respect for the intellectual property of others, the expectation that individual work will be submitted unless otherwise allowed by an instructor, and the obligations both to protect one’s own academic work from misuse by others as well as to avoid using another’s work as one’s own. All students are expected to understand and abide by these principles. SCampus, the Student Guidebook, (www.usc.edu/scampus or http://scampus.usc.edu) contains the University Student Conduct Code (see University Governance, Section 11.00), while the recommended sanctions are located in Appendix A. Students will be referred to the Office of Student Judicial Affairs and Community Standards for further review, should there be any suspicion of academic dishonesty. The Review process can be found at: http://www.usc.edu/student‐affairs/SJACS/. Failure to adhere to the academic conduct standards set forth by these guidelines and our programs will not be tolerated by the USC Marshall community and can lead to dismissal. Emergency Preparedness/Course Continuity In case of a declared emergency if travel to campus is not feasible, USC executive leadership will announce an electronic way for instructors to teach students in their residence halls or homes using a combination of Blackboard, teleconferencing, and other technologies. Please activate your course in Blackboard with access to the course syllabus. Whether or not you use Blackboard regularly, these preparations will be crucial in an emergency. USC's Blackboard learning management system and support information is available at blackboard.usc.edu. 13