NESsT Venture Fund Portfolio Support

Capital Investments
NESsT Venture Fund portfolio members receive capital investment over a multi-year (minimum 3-year) period. Investment levels are determined on a case-by-case basis and contingent on success in reaching enterprise development benchmarks. NVF investments are typically earmarked for one of two purposes:
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- Organizational Capacity Investments: these investments are used to focus on the core capacity development of the CSO parent organization to manage the enterprise (e.g., staff development, financial systems development, upgrading equipment, software or office space, etc.); or
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- Enterprise Capacity Investments: these investments are used toward self-financing start-up, operating or expansion expenses as identified in the CSO business plans (e.g., product/service development, marketing, enterprise-specific equipment purchases/upgrades, etc.).

NESsT capital investments provide only partial financing for social enterprises in the portfolio and must be matched by the CSOs' own resources (financial, human and/or other in-kind, at a level appropriate to each CSO's size and capacity) and/or by resources from other investors, donors or local financial institutions (including those leveraged by NESsT through the Investors' Circle). At the end of each CSO's first year in the NVF portfolio, the progress of the social enterprise is evaluated (against the value drivers and benchmarks established at the start of the relationship), at which time NESsT determines if and when further investments will be made.
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- Investors Circle: The NESsT Venture Fund also serves an important "brokering" role for the CSO enterprises in the portfolio. NESsT assembles the Investors Circle of donors and investors to help leverage additional sources of financing for the portfolio. Starting with the business plan defense, NESsT continuously helps prepare portfolio members to present their business ideas and plans clearly to other potential donors/investors. Read more about how to become a member of the NESsT Investors Circle.
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Capacity-Building
NESsT and our network of local and international partners serve as an "incubator" for mentoring each social enterprise in the portfolio, continuing to provide planning, management and other technical assistance to help make the enterprises self-reliant and - hopefully - also profitable. NESsT helps all portfolio members develop a set of core enterprise development skills as well as providing a capacity-building assistance strategy tailored to the individual needs of each social enterprise.
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- NESsT Staff: The NESsT Enterprise Development Director and Associates assemble regular "Enterprise Development Meetings" with the director, enterprise manager, board members and local business advisors or consultants of each portfolio organization to assess enterprise progress, troubleshoot individual challenges, etc.
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- Strategic Partners: NESsT has developed relationships with a number of key partner corporations and organizations with expertise in particular areas to provide targeted support to our portfolio members. (under construction)
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- Business Advisory Network (BAN): The BAN is a volunteer group of 30+ corporate and nonprofit professionals with skills in accounting, business development, law, finance, management, marketing, accounting, tax issues, investment and risk analysis, etc. The BAN provides individual advice and guidance in the development and management of the NVF, reviewing pipeline business plans, providing direct consultation to our portfolio members on key enterprise development issues, etc.
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- Technology Support: NESsT believes that technology (i.e., both hardware, software and systems) play an important role in building capacity of social enterprises to operate effectively. NESsT therefore provides special financing and technical support to portfolio organizations to define and implement technology strategies that help further their social enterprise goals. NESsT assists portfolio organizations to develop a technology plan for their organization with special emphasis on how technology can further their social enterprise goals.
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- NESsT Entrepreneurs-in-Residence (NESsTERs)

- shared learnings from others in portfolio: A central part of the NESsT Venture Fund model is the benefit of regional sharing of lessons-learned among members of the portfolio themselves. NESsT's experience has been that this regional exchange of information and experience is invaluable as peer CSOs struggle with similar challenges and benefit from learning from one another's mistakes and successes. The regional portfolios thus come together on at least twice a year for 1-2 day progress updates and exchange. Portfolio organizations also participate in enterprise development skills-building workshops organized by NESsT at these meetings.
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