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BonVenture

Fund and Foundation for Social Responsibility

Commitments to companies and organizations with a social purpose in German-speaking countries.

Mission of BonVenture

In view of increasing social and ecological problems and growing public sector deficits, BonVenture was established by individuals willing to take responsibility for the community. This sense of responsibility stems from, among other reasons, the social obligations which come with prosperity. These individuals will use their available material and intellectual means to advocate efficient solutions for social and ecological problems. At the same time, they aim to encourage other citizens to contribute to and even to replicate these solutions.
The activities of BonVenture and its supported projects will contribute to the improvement of the efficiency of the social welfare system through new private entrepreneurial organizations and competition. In addition, BonVenture strives to improve the transparency of the social sector and, with this model, hopes to inspire other similar funds.

Humanity and Economic Efficiency

BonVenture's goal is to tackle social, societal and ecological problems and to contribute to the reduction of these problems, to improve the efficiency and transparency in the social sector and to set an example for social investments by combining humanity and economic efficiency.
To achieve this, BonVenture applies proven Venture Capital techniques to the social sector. BonVenture provides its projects with long-term financial resources as well as a network and professional support. In addition, BonVenture develops and applies initiatives to improve the transparency and the communicability of the social impact of these projects.
BonVenture's main objective is to reduce social, societal and ecological problems in German-speaking countries and to promote social responsibility in a time when existing systems often fail to perform their tasks due to a lack of financial resources and innovation.
While Socially Responsible Venture Capital is already established in the United States, the BonVenture Group is one of the first vehicles of its kind in the German-speaking part of the world. It provides private equity as well as active management support to social projects and is at the same time a non-profit activity for its investors.

BonVenture as Partner

BonVenture supports organizations in the social sector which are based on an innovative idea and are financially self-supporting in the long run.
A main criteria for a commitment from BonVenture is the existence of a Social Entrepreneur who initiated the project and is accelerating it. Social Entrepreneurs are individuals who think and act as entrepreneurs to lead their social or ecological project. They use their energy, personal commitment and high level of motivation to achieve sustainable positive change in the social and ecological field. BonVenture acts as a partner to bring Social Entrepreneurs and investors together.

BonVenture sets financial and in particular social objectives as benchmarks for success (Double-bottom-line approach):

  • The primary objective is to reach a high social impact
  • The financial objective is at least capital preservation


BonVenture uses a professional infrastructure to promote and support social projects:

  • Project applications have to undergo an intensive due diligence process before a commitment is made
  • Projects are financed in different financing rounds according to pre-defined milestones and are actively supported through close and intensive cooperation
  • Risk is reduced by spreading financial resources over 15-20 portfolio companies


The following characteristics distinguish BonVenture from most traditional foundations:

  • Higher transparency
  • Efficient use of financial resources
  • Payment according to milestones
  • Active support


Deal Selection Criteria and Focus

BonVenture focuses on German-speaking countries (Germany, Austria and Switzerland). BonVenture supports projects in the start-up, early or expansion stage by providing them with equity, mezzanine financing or loans with or without collateral. BonVenture invests in projects that provide solutions and services for the following areas:

Innovative social services and products for

  • marginalized groups
  • employment and education
  • children, young people and the elderly

Transparency and social development

Ecology

  • new eco-friendly technology and services
  • nature and species protection
  • nutrition and consumer protection
  • environmental protection


Over time and as its portfolio expands, BonVenture will further specialize in some of these areas. In the selection of projects BonVenture applies strict criteria including the motivation, persistence and credibility of the team as well as the value of the project as a role model. BonVenture will not invest in turn-arounds or in projects that only serve the securing of jobs. BonVenture will also not take over stakes of other investors. BonVenture aims to invest between EUR 250,000 – 1 mio. per project, also together with co-investors.
BonVenture's guiding principle is to support organizations or projects that have a social and/or ecological business purpose, that are based on innovative ideas and are financially self-supporting in the long run. The projects should have a strong social impact; it should be possible to multiply and to reproduce their concepts. The projects should be sustained by highly motivated and committed Social Entrepreneurs who express their ideas in a business plan.

Examples

BonVenture has already reviewed many projects: i.e., travel and transfer services for elderly people, efficient/innovative approach to arranging employment, concepts for providing medical care to socially disadvantaged individuals, concepts for re-integrating socially disadvantaged individuals, ecological food production or projects for food monitoring and consumer protection.

Implementation

BonVenture pursues a non-profit approach at the investor level (profits are donated). BonVenture Group includes BonVenture I GmbH & Co. KG (BV I) and BonVenture II GmbH & Co. KG (BV II), both forms of incorporation for German VC funds, and BonVenture gemeinnützige GmbH (BV gGmbH; corporation similar to a foundation). All of the above are managed by BonVenture Management GmbH (BVM).

Investors can either become limited partners in the BonVenture funds or can make tax-deductible donations and charitable contributions to BV gGmbH. BVM is responsible for the due diligence of project applications. Investment decisions for the funds are made by the Advisory Board of BVM, whereas for BV gGmbH its Board of Trustees decides on investments. BVM will not only perform the screening and implementation of the investments, but will also provide a range of internal and external services to support portfolio projects (in particular with regard to human resources, financial, strategic and organizational planning).

Advisory Board, Board of Trustees and Managment

Seats in the Advisory Board of BVM and the Board of Trustees of BV gGmbH are assigned to very experienced and renowned individuals.
The Managing Director of BVM and BV gGmbH, Dr. Erwin Stahl, has been in the Venture Capital Business since December 1995 structuring VC funds, managing portfolios and building up companies. With additional financial means on hand, BonVenture has employed additional staff.
As a forerunner in the field of Socially Responsible Venture Capital in German-speaking countries BonVenture has built up a considerable network. In the future BonVenture plans to enlarge this network and to expand the Board(s) with experienced experts.

 

For More Information Please Contact

BonVenture Management GmbH
Pettenkoferstrasse 37
D-80336 Munich
Phone: +49 (89) 2 00 01 25-30
Fax: +49 (89) 2 00 01 25-39
email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Internet: www.bonventure.de