Center for Science, Technology, and Society, News page
Friday, Feb. 8, 2013
Executive Director Thane Kreiner predicts “… in the next 10 years, the convergence of technology and business model innovations could disrupt how energy is produced, distributed, and priced – not just in the frontier markets of the developing world, but also in the developed world.”
To read the article, click Here.
Friday, Dec. 14, 2012
Earlier this week the Center was delighted to host a holiday reception to celebrate the accomplishments of the last year, like the graduation of several GSBI Online cohorts, and the first year of our GSB Fellowship program.
The main event of the evening was John Kohler's presentation of his new research proposal for a demand-dividend investment vehicle for impact investing.
The Demand-Dividend project work will include final financing model design, a regression analysis on existing enterprises, and the creation of flexible term sheets. The Argidius grant will fund the field-oriented phase - preparing to test the new financing model with between four and six enterprises beginning in early 2013. Planning and initial diligence visits will occur in the autumn of this year.
Two years ago we launched a dedicated Impact Capital initiative with the aim of preparing social enterprises to move beyond philanthropic grants to attract private investment capital. Early work culminated with the release of a white paper, Coordinating Impact Capital
in the summer of 2011.
You can read more about the demand-dividend project in our press release
Friday, Dec. 7, 2012
Our own GSB Fellow, Kirsten Petersen, has been updating her blog on her experience working with GSBI Alumni, Solar Sister in Uganda. Her latest article "Finding myself in the Solar Revolution of Uganda" touches on her unique perspecitve as an up and coming Masters engineering student looking at distrubuted power in developing countries admidst her passion in solar photovoltaic and how the two can mix together for an amazing future career!
Click here to read the article.
Monday, Dec. 3, 2012
Our Executive Director Thane Kreiner, was recently featured on Forbes.com in an article by Janet Novack. Here's a taste, "An onslaught of designated shopping days— Black Friday, Small Business Saturday, Cyber Monday—have assaulted our senses, urgently urging us to buy gifts for all of the special people in our lives. Here in the heart of Silicon Valley, it’s easy to pine for the iPad Mini, that 55-inch flatscreen TV, or the latest Kindle. In this season, it’s easy to forget that nearly 4 billion people on our planet live in poverty, on a daily average of less than the cost of one Starbucks specialty coffee."
You can read the rest of the article on Forbes.com by clicking here.
Thursday, Nov. 1, 2012
SANTA CLARA, Calif., Nov. 1, 2012— Applications are now open for Santa Clara University’s Global Social Benefit Incubator (GSBI™), an 11-year-old program that helps social entrepreneurs create greater impact in their poverty-alleviating missions.
This year, the program has been renamed GSBI Silicon Valley and revamped to focus on later-stage, investment-ready organizations with potential to reach significant scale. Up to 15 accepted enterprises will receive eight months of mentoring from Silicon Valley veterans, 10 days of intensive, on-campus education, and — for the first time this year — will be paired with at least one interested funding partner.
GSBI Silicon Valley 2013 is seeking applications from proven social enterprises — those that have been able to reach large numbers of beneficiaries. Those selected will utilize their eight months in GSBI to develop skills and martial resources to achieve operational excellence and attract financing that enables rapid, effective expansion of impact. Qualifying criteria for applicants can be found on the GSBI website.
GSBI Silicon Valley 2013 applications must be completed fully by Jan. 11, 2013. Ten to 15 successful applicants will be awarded scholarships valued at $25,000 each; the in-residence portion at Santa Clara University is scheduled for Aug. 15 to 23, 2013.
The intensified focus reflects the GSBI’s goal of positively impacting one billion people living in poverty by 2020. The program’s new curriculum focuses on achieving significant scale, so alumni of GSBI are also encouraged to apply.
“Last year, we launched GSBI Online in collaboration with the World Bank Development Marketplace to provide earlier-stage social enterprises the core training we’ve always provided through GSBI — establishing a business model, identifying a target market, and crafting distribution plans,” said Eric Carlson, Ph.D., director of the GSBI. “Now, to maximize the impact of our intensive GSBI mentoring and structured curriculum, we’re focusing on social enterprises with the greatest potential to lift vast numbers of people from poverty, and attract impact investors in the process.”
Connecting Impact Investors to Build Stronger Enterprises
Each participating enterprise in the 2013 cohort will be matched with one of the GSBI’s Impact Investment Partners. GSBI’s impact investor partners include Accion, Acumen Fund, Beyond Capital Fund,The Eleos Foundation, Invested Development, and Hub Ventures, among others.
“Impact investors seek a more investment-ready pipeline of social enterprises,” said John Kohler, director of impact capital at the Center. “GSBI Silicon Valley will help social enterprises prepare for and find capital to support scaling of their enterprises.”
GSBI Silicon Valley 2013
Over the past 10 years, the GSBI has built an impressive network ofalumni, mentors, and other resources, all of which will be available to GSBI Silicon Valley 2013 participants. As in past years, the program will comprise four processes, which will be more advanced and customized: Application, pre-work, in-residence, and implementation.
“GSBI has traditionally and successfully focused on fundamental business-model development,” said GSBI Program Manager Cassandra Thomassin. “GSBI Silicon Valley intensifies the focus on operational excellence to attract investments that expand already-proven business models.”
Applicants must provide a recorded elevator pitch; a business plan; a one-year operating plan; and financial statements. Applicants will be evaluated based on a scoring matrix that includes: strength of mission, financial sustainability, potential for scale, potential for social impact, management capacity, and business model efficacy.
Social enterprises focused on off-grid clean energy, health, and mobile applications for any sector are especially encouraged to apply.
Top applicants will be interviewed in March 2013 and participants announced by early April. Each social enterprise will then be partnered online with two or three GSBI mentors to complete tailored pre-work exercises.
About the GSBI
The GSBI is the signature program of the Center for Science, Technology, and Society at Santa Clara University. The mission of the Center is to accelerate global, innovation-based entrepreneurship in service to humanity. For a decade, the GSBI has helped mission-driven enterprises build, sustain, and increase the reach and impact of their businesses. Collectively, alumni of the program have provided essential products and services to an estimated 74 million underserved people worldwide. More than 90 percent of the organizations are still operating. It is currently funded in part by a grant from the Skoll Foundation, corporate gifts from Applied Materials, and individual donors. For more information, visitwww.scu.edu/socialbenefit.
About Santa Clara University
Santa Clara University, a comprehensive Jesuit, Catholic university located 40 miles south of San Francisco in California’s Silicon Valley, offers its more than 8,800 students rigorous undergraduate curricula in arts and sciences, business, theology, and engineering, plus master’s and law degrees and engineering Ph.D.s. Distinguished nationally by one of the highest graduation rates among all U.S. master’s universities, California’s oldest operating higher-education institution demonstrates faith-inspired values of ethics and social justice. For more information, see www.scu.edu.
Deborah Lohse | SCU Media Relations | firstname.lastname@example.org |
Erin Berkenmeier | GSBI Marketing Manager | email@example.com |
Friday, Oct. 26, 2012
We are excited to share this news from GSBI Alumni Husk Power Systems!
Husk Power Systems, Inc. (HPS), an innovative company providing renewable and affordable decentralized energy solution to underserved communities, is pleased to announce that the company has raised Series A equity financing of US $5 million from co-investors Bamboo (Oasis Fund) Finance, Acumen Fund, and LGT Venture Philanthropy. Acumen Fund and Bamboo Finance led the Series A financing process along with LGT Venture Philanthropy. DFJ and CISCO will remain invested in the company having converted their existing investment to equity capital.
“HPS continues to demonstrate the commercial viability of providing affordable electricity to low income communities. We believe their model can be replicated in many countries. We are excited about their progress and investing in their ongoing growth,” said Jean-Philippe de Schrevel, Chief Executive Officer of Bamboo Finance.
HPS has been a pioneer in using 100% biomass waste (rice husks, straws and other crop straws etc.) gasification process for generating electricity and distributing power directly to households. The company has successfully implemented 80 mini-power plants that serve over 200,000 people in more than 300 villages. This is no small feat and this de-centralized model of electricity generation and distribution was validated on July 31, 2012 when 670 million Indians on the centralized grid suffered blackouts (http://www.nytimes.com/2012/08/01/world/asia/power-outages-hit-600-million-in-india.html?pagewanted=all&_r=0
) while 200,000 people served by HPS mini-grids had their lights on. With this new equity capital, HPS aims to rapidly expand its operations in rural India and East Africa and power the lives of over 10 million people in rural areas. The company is also looking to raise up to US $4 million of term loan to support its expansions organically and through its “franchise” partners.
“Never before has the need for safe energy alternatives been greater and it’s remarkable to be a part of what Husk Power has been able to accomplish in recent years,” said Sachindra Rudra, Director of Acumen Fund India. “This additional investment represents an important step in Husk’s evolution as it continues to scale and provide affordable and reliable electricity across rural areas that need it most.”
“While Series A financing positions HPS to exponentially scale its modular energy solution, it is paramount to understand that such scaling would be practically impossible without the right mix of capital that consists of equity and debt capital and equally importantly grant capital necessary to address systemic issues like training rural talents, and discovering low-cost smart metering and grid solution”, said Manoj Sinha, Co-Founder of Husk Power Systems. HPS formed strategic partnership with Shell Foundation in 2008 and has received grant funding. The company also partnered with Overseas Private Investment Corporation to secure low rate term-loan in June 2012.
Simon Desjardins, who manages Shell Foundation's Access to Energy Program, said: "Husk Power is a global pioneer in the rural electrification sector and is proving that de-centralized power provision is a viable model to reach rural households and businesses. Their recent fundraise will enable significant scale in India and Africa that will further validate their approach and create impact."
The company’s expansion strategy will focus on leveraging its core competency of providing very low cost renewable energy at community scale and addressing systemic challenges like training a large number of rural people for running and managing power plants through Husk Power University. In addition, HPS plans replicate its model in multiple locations by expanding its “Franchise” network in different geographies. Going forward, HPS will utilize a combination of biomass power plants (with larger plants of size of 100-250KW) with AC grid and Solar powered plants with DC grid as appropriate. The company is actively looking for talents and partners with passion to help achieve the ambitious growth targets of installing over 2,000 mini-power plants.
"This long awaited closure of financing strengthens and validates the growing confidence in the market of rural electrification using “ecosystem approach” that Husk Power Systems started. We plan to thrive in the diversity of our efforts and build on the platform we have created in past 5 years. Thus far we have been a good promise. This financing round will go a long way in making us a solution for the world”, said Gyanesh Pandey, the Co-Founder and Chief Executive Officer of Husk Power Systems.
About Husk Power Systems:
Husk Power Systems is a rural empowerment enterprise. The company focuses on inclusive rural development on the backbone of renewable energy solution. Unlike any other effort in the world, it creates a self-sustaining ecosystem in the villages it serves, enabling economic development along with environmental protection, physical well-being and strengthening of the rural communities. A humble effort spearheaded by locals from the communities served, HPS strives to touch more than 10 million lives over the next five years, in rural areas across the world. For more information, please visit http://www.huskpowersystems.com/
About Bamboo Finance:
Bamboo Finance is a commercial investment firm managing 250M USD representing a unique portfolio of direct investments around the world with offices in Bogota, Singapore, San Francisco, Luxembourg and Geneva. Bamboo specializes in the financing of entrepreneurship globally. We use a market-oriented approach to deliver social value environmental value and financial returns to investors. Please visit http://www.bamboofinance.com/
for more information.
About Acumen Fund:
Acumen Fund is working to create a world beyond poverty by investing in social enterprises, emerging leaders and breakthrough ideas. We invest patient capital in business models that deliver critical goods and services to the world’s poor, improving the lives of millions. Since 2001, Acumen Fund has globally invested more than $80 million in 72 companies. We are also working to build a global community of emerging leaders that believe in creating a more inclusive world through the tools of both business and philanthropy. Please visit www.acumenfund.org
for more information.
About LGT Venture Philanthropy:
LGT Venture Philanthropy is an impact investor supporting organizations with outstanding social and environmental impact. Our team in five continents strives to increase the sustainable quality of life of less advantaged people by inspiring clients for active philanthropy, providing individualized philanthropic advice and investment implementation. Our broad range of clients benefits from the experience, systems, processes and networks built by implementing the philanthropic engagement of the Princely Family of Liechtenstein/LGT Group. Please visit http://www.lgtvp.com/
for more information.
Thursday, Oct. 18, 2012
Team of SCU Students and Silicon Valley industry veterans among five winners of the Argidius-ANDE Finance Challenge
SANTA CLARA, Calif., Oct. 17, 2012 – A team of Silicon Valley industry veterans and students at Santa Clara University’s Center for Science, Technology, and Society (CSTS) has been selected to design and implement a new investment tool with the potential to aid thousands of small and growing businesses in emerging economies.
This two-year project is one of five winners of the Argidius-ANDE Finance Challenge, a highly competitive international competition administered by the Aspen Institute Network of Development Entrepreneurs (ANDE). The Santa Clara team will receive a €200,000 grant to support the design, analysis, and field-testing of the new investment vehicle.
The Problem: Angels but not Investors
Financing for small and growing businesses in developing economies is constrained by the low level of return from investments already made to date. Most “impact investors” have seen their investment holding period lengthen from 3-5 years to 7-10 years. Without more understanding and confidence in the ability of social enterprises to provide return, equity investors are hesitant or unable to commit new funds.
Achieving reliable and repeated returns would make not only existing dollars available to new investments, but it would also improve investor confidence to commit new capital to what are now seen as difficult or ‘frontier’ markets. So far, debt and equity mechanisms have failed to offset the risks inherent in developing markets with enough reward to encourage new investors.
For small enterprises promising moderate (7% - 14%) returns from moderate ($25K - $250K) investment amounts, a new solution is needed. CSTS believes a risk-capital investment vehicle that is a hybrid between low-return debt and high-return equity is needed – and could encourage significant funding currently sitting on the sidelines to jump into emerging markets.
The Solution: Demand-Dividend Investment Vehicle
Responding to interest in a new model, CSTS Impact Capitalprogram director John Kohler has begun work on a financing concept. The Demand-Dividend project work will include final financing model design, a regression analysis on existing enterprises, and the creation of flexible term sheets. The Argidius grant will fund the field-oriented phase - preparing to test the new financing model with between four and six enterprises beginning in early 2013. Planning and initial diligence visits will occur in the autumn of this year.
CSTS is uniquely positioned to receive this grant. They launched a dedicated Impact Capital initiative in 2010 with the aim of preparing social enterprises to move beyond philanthropic grants to attract private investment capital. Early work culminated with the release of a white paper, Coordinating Impact Capital in the summer of 2011.
John Kohler recently presented on the Demand Dividend concept at SOCAP12 in San Francisco on October 3, 2012. Visit John's SOCAP12profile for more information.
Taking the VC out of the Valley
Successful demonstration of a Demand Dividend investment vehicle will create ‘economic pull’ by delivering what impact investors do not readily achieve today: moderate to high return with a more-rapid capital cycle.
CSTS has received expressions of interest from 11 impact funding sources and, with demonstrated success, will encourage these funds, as well as its many fund contacts through ANDE, Toniic, Oxfam and its Silicon Valley network, to use the Demand Dividend. The Center also will be co-leading an examination on alternative investment being conducted at the University of Michigan Law School, which will be instructive to the Argidius-ANDE Finance Challenge results.
About the Center for Science, Technology, and Society
The mission of the Center for Science, Technology, and Society is to accelerate global, innovation-based entrepreneurship in service to humanity. Through an array of programs including its signature Global Social Benefit Incubator (GSBI™), the Center engages an international network of business, investment capital, and technical resources to build the capacity of social enterprises around the world. As a Center of Distinction at Santa Clara University, the Center leverages its programs to inspire faculty and students with real-world case studies, distinctive curricula, and unique research opportunities, advancing the University's vision of creating a more just, humane, and sustainable world. More information atwww.scu.edu/socialbenefit
Deborah Lohse | SCU Media Relations | firstname.lastname@example.org |
Erin Berkenmeier | CSTS | email@example.com |
Monday, Oct. 1, 2012
Wednesday, Sep. 26, 2012
SAN JOSE, CA – Each year, nearly four million newborn babies never live past their first days – all for lack of warmth.
At least a billion people globally have limited – or no access – to clean water. And while almost half the world’s population cooks with wood or other biomass fuels, indoor-air pollution generated by cooking fires contributes to the premature deaths of nearly two million people annually.
Enter the “techmanitarians” – a dozen international innovators who toil with unequaled resolve to eliminate these and other persistent global challenges. Their noble achievements will be recognized Thursday, Nov. 15, 2012 at the Santa Clara Convention Center during Silicon Valley's leading awards program, The Tech Awards, presented by Applied Materials in association with the Center for Science, Technology, and Society at Santa Clara University.
“We are inspired by the laureates’ desire to improve the world through the creative use of technology and their perseverance to this end,” said Tim Ritchie, president of The Tech Museum. “Their lives and work serve as a challenge to us: Do we desire to make our work count for others, and are we willing to use our considerable assets to build a better world?”
This year, two cash prizes will be awarded - $75,000 and $25,000 - in each of six of The Tech Awards categories: Intel Environment Award; Microsoft Education Award; The Swanson Foundation Young Innovator Award; Nokia Health Award; Flextronics Economic Development Award, and The Sustainable Energy Award.
Since the inception of The Tech Awards program in 2001, 257 laureates have been recognized. Their pioneering work has included designing earthquake-resistant construction technology to creating a heat-sensitive label for vaccine vials to make sure children receive potent immunizations to building a simple, low-cost, mobile phone-based device that allows remote monitoring and operation of irrigation pumps.
“Through their outstanding creativity and conviction, this year’s laureates are providing innovative solutions to some of humanity’s most urgent problems,” said Mike Splinter, Chairman and CEO of Applied Materials. “In many ways, the Tech Awards embody the spirit of Silicon Valley and the belief that technology can improve people’s lives and make the world a better place.”
As part of The Tech Awards, Indian philanthropist N.R. Narayana Murthy, will be honored with the James C. Morgan Global Humanitarian Award sponsored by Applied Materials. This award honors individuals whose broad vision and leadership help to alleviate humanity's greatest challenges. Murthy founded tech services giant Infosys Limited along with six colleagues and went on to become one of India’s most influential advocates for health care and rural development.
Murthy served as the first CEO for 21 years and currently holds the role of Chairman Emeritus at the global technology services company. Infosys established the Infosys Foundation in 1996. The Infosys Foundation works in partnership with non-governmental organizations to help underprivileged rural communities in India that are focusing on five initiatives: healthcare, education, culture, destitute care and rural development.
Murthy, who has been lauded by TIME magazine, honored by CNBC and praised by Ernst & Young as World Entrepreneur of the Year, joins an impressive roster of past recipients that includes former eBay head and champion of equitable society Jeff Skoll, education and cross-cultural dialogue advocate Queen Rania Al Abdullah of Jordan, Nobel Laureate and former U.S. Vice President Al Gore, Microsoft co-founder Bill Gates and Applied's former Chairman and CEO James C. Morgan, who inspired the award.
The Tech Awards laureates 2012 represent regions as diverse as Africa, India, South America and the United States. Their work impacts people in many more countries worldwide.
During their week-long stay in Silicon Valley, the laureates are engaged in specialized business and media training, networking with leading tech companies and venture capitalists, as well as learning about the experiences of fellow laureates.
Applications will be accepted for next year’s laureates beginning November 1, 2012.
Intel Environment Award
- Arup K. SenGupta
Transforming Arsenic Crisis into an Economic Enterprise
Southeast Asia; India
- Problem: According to World Health Organization (WHO), over 200 million resource-poor people are threatened with arsenic poisoning by drinking contaminated groundwater in Cambodia, Nepal, India, Bangladesh and Vietnam.
- Solution: Use of appropriate simple-to-operate technology in rural setting to transform arsenic crisis into an economic enterprise while protecting human health.
- Impact: Over 200,000 people including school children are benefiting in arsenic-affected countries.
- LEHR, Inc. Propane Outboard Motors
U.S. and Canada
- Problem: Small gasoline engines cause excessive pollution, yet electric/battery solutions do not provide the performance required to be a universally viable alternative.
- Solution: Patented gaseous-fueled engines that significantly reduce/eliminate pollution while improving performance and reducing cost of ownership.
- Impact: About 100,000 lawn and garden engines that eliminate evaporative emissions while reducing VOC (Volatile organic compounds) emissions. Marine outboard engines that eliminated fuel spills into water while reducing methyl-mercury-causing particulate emissions by up to 96 percent.
Microsoft Education Award
Problem: Basic health and agriculture knowledge isn’t reaching the world’s poorest billion people due to illiteracy and lack of electricity.
Solution: A simple and durable, battery-operated, audio computer playing locally produced lessons that address the practical needs of people in oral cultures.
Impact: 250,000 lessons delivered to 20,000 farmers in the poorest regions of Ghana. Farmers harvested 48 percent more crops and 90 percent of maternal health lessons led to healthier behaviors.
Problem: Research shows that despite hundreds of millions of dollars spent worldwide on HIV "awareness" campaigns over 30 years, accurate knowledge of HIV still remains dangerously low.
Solution: Re-imagine the worldwide public health solution to focus on actual "education" rather than "awareness" and develop the most effective and flexible HIV education software after 5+ years of cross-disciplinary research at Stanford.
Impact: Provide HIV education with unprecedented efficacy to more than 200 organizations and governments in 73 countries, educating millions around the world, and including breakthrough implementations in regions that had banned sex education.
Katherine M. Swanson Young Innovator Award
Problem: Prohibitive upfront prices for clean-energy products prevent millions of off-grid Africans from accessing healthy and economical lighting and battery charging.
Solution: Low-cost, embedded pay-as-you-go technology that allows customers to pre-pay for energy use with cash-in-hand. Remotely regulated over cellular networks and integrated with existing mobile money platforms, these energy payments are cheaper than typical kerosene expenditures.
Impact: Clean, bright light and cell-phone charging is financially accessible for over 90 percent of the base of the pyramid market.
Safe Agua Peru, Art Center College
Problem: In Cerro Verde, a slum on the outskirts of Lima, Peru, 30,000 people live without access to running water and sanitation.
Solution: Design and co-create with Cerro Verde families, innovative and cost-effective products tested by the community and implemented by Techo, a Latin American NGO dedicated to working with families living in extreme poverty.
Impact: Empower families and communities through responsible design to conserve water, reduces illness and generate social, cultural, and economic change.
Nokia Health Award
Problem: Every year almost 2 million people die prematurely from indoor pollution caused by smoky open cooking fires; these same fires contribute more black carbon than all the cars and trucks in the world combined.
Solution: The BioLite Homestove is a low-cost, highly efficient wood-burning stove that dramatically reduces smoke and harmful black carbon emissions while reducing fuel needs by 50 percent.
Impact: A single HomeStove pays for itself in six to seven months, and lowers the rates of potentially fatal respiratory diseases while saving 2,000 pounds of wood per year and averting the C02 emissions of a compact car.
Problem: 1.1 million pre-term babies die every year; 75 percent could survive with inexpensive treatment.
Solution: A low-cost infant warmer specifically designed to address the needs of babies suffering from hypothermia.
Impact: Thousands of babies may be impacted by the warmers currently distributed with 11 partnerships in eight countries.
Flextronics Economic Development Award
Grameen Foundation USA
Community Knowledge Worker
Problem: Small farmers often lack knowledge and information on agriculture.
Solution: Deploying trained intermediaries. Information and advice increases yields and profits.
Impact: Work with 65,000 farmers in more than 8,800 villages to increase yields and profits
Pamela C. Ronald, David Mackill, Kenong Xu
Rice Submergence Tolerance
Problem: Yields of rice, the most important crop for over half of our planet, are catastrophically reduced during floods. Because rice provides up to two thirds of the diet of many people in the developing world, many who live on less than $1 day, these losses have devastating impacts on farmers and their families.
Solution: Identification of a submergence tolerance gene and precise introduction of the gene into locally adapted varieties favored by farmers using modern molecular breeding.
Impact: In 2011, a million farmers grew “Sub1 rice,” with millions more expected in the next few years. Yields of “Sub1” rice are three to five folds greater than conventional varieties during floods.
Sustainable Energy Award
Problem: Clean cooking fuel is inaccessible for 30 million people in Uganda and 28 million poor farmers have no access to fertilizers.
Solution: Simple, locally made technology that can be used by local people to convert sourced farm and municipal waste into clean cooking fuel and organic fertilizers.
Impact: 6,000 families already benefiting from the technology, with 10,000 more expected to be reached by the end of 2013.
Problem: 400 million people in India, and more than 1.5 billion worldwide are without access to reliable electricity.
Solution: Simple, affordable, pay-as-you-use pricing and mobile payment for off-grid solar energy solutions.
Impact: By 2015, more than 250,000 households with access to clean energy, 6.5 megawatts of distributed solar power installed, more than 160,000 tons of CO2 displaced.
Director Public Relations
About The Tech Museum of Innovation
The Tech Museum is a hands-on technology and science museum for people of all ages and backgrounds. The museum—located in the Capital of Silicon Valley —is a non-profit, experiential learning resource established to engage people in exploring and experiencing applied technologies affecting their lives. Through programs such as The Tech Challenge presented by Cisco, our annual team-design competition for youth, and internationally renowned programs such as The Tech Awards presented by Applied Materials, The Tech Museum endeavors to inspire the innovator in everyone.
About Applied Materials
Applied Materials, Inc. (Nasdaq:AMAT) is the global leader in providing innovative equipment, services and software to enable the manufacture of advanced semiconductor, flat panel display and solar photovoltaic products. Our technologies help make innovations like smartphones, flat screen TVs and solar panels more affordable and accessible to consumers and businesses around the world. At Applied Materials, we turn today's innovations into the industries of tomorrow. Learn more at www.appliedmaterials.com
About the Center for Science, Technology, and Society
The mission of the Center for Science, Technology, and Society (CSTS) is to accelerate global, innovation-based entrepreneurship in service to humanity. Through its signature program, the Global Social Benefit Incubator (GSBI™), as well as the Frugal Innovation Lab, research in Impact Capital, and collaboration with The Tech Awards, the Center engages business and technical resources to build the capacity of social enterprises around the world. As a Center of Distinction at Santa Clara University, the Center leverages its programs to inspire faculty and students with real-world case studies, distinctive curriculum, and unique research opportunities, advancing the university’s vision of creating a more just, humane, and sustainable world. More information can be found at www.scu.edu/socialbenefit
Monday, Sep. 10, 2012
This article was originally published by the San Francisco Chronicle. The original source can be found here.
Shivani Siroya is a petite woman hammering away at a tall task - building a model of credit scores for the poor in India.
On a recent weekday in Santa Clara, she took her audacious enterprise before a group of investors, professors and entrepreneurs from Silicon Valley - many of whom have never worked or lived in India.
But they're keen on helping, by transferring their knowledge from the Bay Area to markets in the developing world that seek sustainable business strategies.
Siroya was one of 19 entrepreneurs at this year's Global Social Benefit Incubator who have been undergoing a critical evaluation from this group, whose members also include venture capitalists and experts in social enterprise. Beyond building successful enterprises, the incubator wants ones that alleviate social needs.
"People are not going to give money to you indefinitely, even if you're doing some good in the world. So we have to help these entrepreneurs develop sound business models that will flourish and last," said Eric Carlson
, director of the incubator and dean's executive professor in the Leavey School of Business
at Santa Clara University
Not a typical program
Started in 2004 at the university's Center for Science
, Technology and Society
, the incubator hoped to combine the talents of the valley with the activism of emerging social entrepreneurs to see if social impact and profit-making could be combined. Among its first successes: Husk Power Systems, an alternative energy business that recycled rice husks into an energy supply. Today, Husk supplies energy to more than 200,000 people in 300 villages in northeastern India.
An incubator participant from a year ago, Katherine Lucey
, CEO and founder of Solar Sister, also works in alternative energy for the poor. Her model mimics that of Avon. Instead of lipsticks and perfumes, the local female entrepreneurs she relies on in Uganda and Rwanda sell solar lamps.
Compared with other social incubators of the past decade, Lucey says, the Santa Clara one stands out. "I think their Silicon Valley location gives them an intensity and a drive that ramps up the typical incubator program," she said.
As Solar Sister went from simply being a pilot project to developing a full-blown business plan, Lucey attended a two-week, in-residence program last summer. That resulted in a more nuanced business model and partnerships with past incubator participants such as San Francisco's Kiva
.org, the crowdfunding microfinance platform. Now donors can help fund a Solar Sister entrepreneur's business by lending to her via the Kiva website, Lucey said.
Growing a business
For mentors at the workshop, getting these entrepreneurs to scale is a primary goal. But as Anuj Sharma
, COO of Sarvajal, a water-based social enterprise in South Asia, learned at this year's event, it's not just about sporadic growth. His mentors advised him to go deeper, not wider.
"The constructive feedback has been around not getting excited about numerous small opportunities, such as taking the initiative to other countries ... but making sure that we have greater depth in demonstrating our work in India itself," he said.
"The emphasis of this program is on how to really scale your organization and get the kinks out so you can get home and get back to work and hit the ground running. It's about really coming out of here with a solid operating plan. It's literally like MBA boot camp," she said.
Entrepreneurs attend classes on unit economics, scaling business, value chains, operating plans, budgets and fundraising from 8 a.m. to 6 p.m. daily. Those sessions are followed by late-night get-togethers with their mentors, where they get more personalized advice.
This year's gathering brought together more than 150 mentors, who will continue to work with these enterprises into the fall. One is Jeff Miller
, former director of Santa Clara's Center for Science, Technology and Society. He built a career in technology at Intel before transitioning to supporting social businesses. He's been an adviser since the program's inception and sees one common thread in many of the young people.
"They have such huge, wonderful, passionate visions of how to change the world in energy, water, education
and more. But they lack focus. So we encourage them to look at an area that they can focus on and make an impact. This can be a particular demographic or region, which makes for a more concentrated effort."
Aside from making visions more concrete, entrepreneurs are taught to balance social impact with profit, he explains. Presenting a purely socially driven plan to a venture capitalist rarely gets funding.
"They're not bad people," Miller jokes, "but they have to make a return as well. So you have to tailor it to their needs as well when making a pitch."
Investing for impact
Impact investing, an emerging field for social effect as well as monetary return, has been gaining prominence. But Miller and Carlson are cautious, noting that the area needs to mature and develop an infrastructure. Yet it's quickly become a topic of discussion at the incubator.
"Impact investing has not been terribly successful so far. There's money around in the valley, yes. But it's largely risk-averse. Plus, we have to make sure that investors don't drift from the intentions of the social business, which is very much to create a product for the bottom of the pyramid, not the top," Carlson said.
Carlson hopes that in the near future, they can team entrepreneurs not just with Silicon Valley mentors, who understand the bottom line, but with mentors in their countries of operation, who know the bottom of the pyramid intimately.
"That would be ideal," he said.