1 THE CONTINUUM OF CAPITAL IN ASIA HIGHLIGHTS ACROSS THE FULL SPECTRUM OF SOCIAL INVESTMENT2 Authors: Martina Mettgenberg-Lemiere, PhD Nguyen Le Phuong Anh Olivia Yutong Wang Acknowledgments: We are grateful to the following AVPN staff members and associates who helped with connections, research and comments to shape this paper: Outi Annala, Naina Subberwal Batra, Rachel Chan, Jasmine Chew, Dorothy Ching, Patti Chu, Syarif Hamdi, Sunkyung Han, Allison Hollowell, Ken Ito, Ruth Jones, Patsian Low, Caroline McLaughlin, Keilem Ng, Emilie Roell, Moushumi Bannerjee, Nadine Kotval, Kavita Tatwadi, Binali Suhandani, Ashima Suri, Kevin Teo, Cindy Wang, and Chen Zhu. CONTENTS Published by Asian Venture Philanthropy Network. June 2018. Copyright AVPN 2018 This work is licensed under the Attribution-NonCommercial- ShareAlike 4.0 International License: Attribution You must give appropriate credit, provide a link to the license, and indicate if changes were made. ShareAlike If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original. NonCommercial You may not use the material for commercial purposes. INTRODUCTION WHAT IS THE CONTINUUM OF CAPITAL? IMPACT BEHAVIOUR FUNDING FLOW FUNDING BEHAVIOUR CONCLUSION Founder Institute on mentoring, as well as other impact funds and MFIs for information and resource sharing Corporates create impact at the intersection of business strengths and community needs as a bridge between the local and the global Corporates create impact by responding to the real needs of the communities they operate in where their core expertise can make a difference. Beyond traditional CSR and corporate philanthropy, corporates increasingly bring in their business skills, human resources, network and sometimes access to market to benefit the local community in addition to making grants. The impact areas corporates focus on are specific to the context of the markets in which they are present. These include: Disaster preparedness in Southeast Asia (ABS- CBN Lingkod Kapamilya Foundation, Prudence Foundation) Financial inclusion and mini-grids in Myanmar (Yoma Strategic Holdings) Quality education in India (Dr. Reddys Foundation, Edelgive Foundation) Financial literacy across Asia (Prudence Foundation) Corporate impact venturing is also becoming popular 8 Impact Measurement Impact measurement still has room to develop. Funders and intermediaries in Asia typically measure their impact at the SPO level. Some intermediaries in India are developing more rigorous impact assessment frameworks at the beneficiary level (The Education Alliance, Learning Links Foundation) or to measure their impact at the ecosystem level (Okapi Advisory Services). CORPORATES good. Through these geographically wide activities and international partnerships, they have become a bridge between the local and the global. Intermediaries are critical for other stakeholders to maximise impact given their technical expertise and local knowledge Intermediaries work across the supply and demand side of social investment and enable various stakeholders to become more effective and efficient in creating and maximising impact. They support both SPOs and funders, facilitate collaborations and build the ecosystem in multiple ways: Leveraging on their sector expertise to help funders and SPOs make better decisions (ACCESS Health International focusing on healthcare and ageing, The Education Alliance and Learning Links Foundation on education, T-Hub on technology- driven social enterprises) Acting as local partners for international and cross- border funders to provide deep local knowledge and connections that funders might lack (UnLtd Indonesia, Instellar, Impact Hub Yangon) Filling knowledge gaps (Resonance, Asia Value Advisors, Thailand Development Research Institute (TDRI) and many choose to finance early-stage social enterprises at the missing middle in their respective markets (DBS Foundation, Beijing ECharity Foundation, Narada Foundation, Singtel). In addition, many corporates leverage on their regional (DBS Foundation, Singtel) or international footprint (Prudence Foundation) as well as work with multilaterals and development finance institutions (DFIs) such as UNICEF (MTR Corporation), IFC and Norfund (Yoma Strategic Holdings) to amplify social Yoma Strategic Holdings Impact gateway into Myanmar WHAT? Inclusive business - Publicly listed conglomerate active in real estate, automotive, consumer, financial services and portfolio of investment HOW? 2014: USD100 million loan from ADB to improve infrastructure connectivity needed for sustainable economic growth in Myanmar 2017: Set up Yoma Micro Power with Norfund to distribute micropower plants and mini-grids in rural communities 2018: Invested in Wave Money, a leading mobile financial services company, in partnership with Telenor, the largest telco in Myanmar, to improve financial inclusion 2018: CEO sits on the executive committee and is a board member of Myanmar Institute of Directors (MIoD), which aims to promote corporate governance and best business practices 2018: Joined the M2030 initiative by The Global Fund, to advocate, accelerate progress and eliminate malaria in Asia- Pacific by 2030 2018: Partnered with the Rockefeller Foundation, the World Bank and USAID for Smart Power Myanmar 2018: IFC and the government of Canada invested in Yoma Micro Power