Dear {FIRST_NAME|Sir/Madam},
The process of raising a fund in these markets has made for an interesting nine months. The good news is that we now have 33 investors (and counting) who all have a stunning depth of social, financial, and intellectual capital to add to our efforts.
We are now at over $18 million in committed capital which makes Renewal2 one of the largest funds of its type in North America. We remain focused on growing the fund to $50 million and will work hard to bring in interesting new investors before our final close.
It is encouraging to see the foundation community embrace mission investing. Five foundations (four private and the Vancity Community Foundation) have signed on and other investors have committed their proceeds to their foundations. The combination of our solid track record and the innovative legal structures we have in place, which permit Canadian foundations to invest in the Fund, has helped make this possible.
One of the most exciting aspects of completing the first close is reviewing deals and actually having capital to invest. In the past year we have looked at hundreds of potential deals, and are now taking hard second looks at our favourite prospects. We hope to announce our first new investments in the coming months.
I say new investments because as our investors know, Renewal Partners is investing in the fund by transferring $3 million worth of its shares in Seventh Generation and Horizon Distributors, at attractive prices for the other Renewal2 investors.
We are always on the lookout for great companies and entrepreneurs in our sectors – both to consider from an investment perspective and to bring into our network. You can help by sending us interesting investment oppor-tunities and recommending the 14th Annual Social Venture Institute at Hollyhock to the leaders of those companies. SVI already has a waitlist but if you mention Renewal2 we’ll do our best to get you in. (See details below).
I want to conclude by thanking everybody who helped us get to our first close: the team here, our esteemed group of advisors and most of all the great group of investors who have signed on to be our partners in growing R2’s sectors over the next ten years.
Have a great summer,
Paul Richardson
President, Renewal2
Fund Status
Renewal2 now has funds to invest and we are always looking for investment opportunities that:
• Deliver significant environmental and social impact
• Operate in one of the following sectors: organic & natural
food, green consumer products, green building, social
media,social finance, and environmental innovation
• Generate revenues of up to $20 million
• Seek an initial investments in the range of $250,000
to $1.5 million
• Are Located in Canada or the United States
• Are established with a scalable model
If you own or know of a business that meets the criteria above, please submit a business plan inclusive of:
• Current income statement and balance sheet
• Financial projections (2-5 years out)
• Competitive positioning
• Risk factors
• Management team descriptions
• History of company including any previous funding
rounds
For more information contact:
Jennifer Merryman
jennifer@renewal2.ca
(604) 844-7474 ext 625
Sector News
Growth in Renewal2 sectors remains strong even as con-sumers make cost-conscious buying decisions spurred by the economic downturn. U.S. sales of organic products, both food and non-food, grew 17.1% to $24.6 billion in 2008.
Steady growth is predicted for the green building sector with the market expecting to double by 2013 from its 2008 market worth of $149 billion.
Sustainable product launches have increased from 500 in
2008 to over 1,500 in 2009. Small businesses and institutional corp-orations alike are utilizing social networking tools to reach new market segments, spurring the demand for social media outlets.
These statistics bode well for our sectors:
Green Building • Organic & Natural Foods • Green Consumer Products • Environmental Innovation • Social Finance • Social Media
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Investor Spotlight
“We are longtime collaborators with Renewal Partners and proud investors in Renewal2.” says Executive Director, Derek Gent. This is the first private equity investment for Vancity Community Foundation, which manages almost $40 million in core endowment and donor advised funds, and helps diversify an already 100% SRI approach into yet another asset class. “It is unfortunate that we had to create a separate mechanism (through a Trust) to allow registered charities to invest in this type of social venture fund based in Canada,” says Gent, “but we’re thrilled that Renewal2 has done the extra work to make this possible. We hope to see more of these funds and more investors emerge.“
Vancity Community Foundation is an arms-length public chari-table foundation associated with Canada’s largest community based credit union (Vancity) in Vancouver, BC.
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About Renewal2 Investment Fund
Based in Vancouver, BC, Renewal2 is a social venture fund that builds upon 15 years’ experience in successful high-impact investing. We are dedicated to delivering superior financial returns by investing in some of North America’s leading environmental and social mission businesses. We focus on underfunded sectors that are critical to a sustainable economy, early stage companies that require patient capital, and scalable businesses that can generate meaningful shifts in consumer behavior. Managed by the principals of Renewal Partners, the Renewal2 team brings over 30 years experience in social investing and capital markets to the fund.
Disclaimer: This is not an offer or solicitation to sell securities of, or financial interests in, the Fund. Investment in the Fund is limited to a restricted pool of investors, namely “Accredited Investors” and others not requiring disclosure by prospectus as defined under applicable securities laws.
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In the Spotlight
September 2-6, 2009
Hollyhock - Cortes Island, BC
Join Renewal’s Carol Newell, Joel Solomon, Marian Moore and special guest speaker, Abigail Disney at Hollyhock for Play BIG – an invitational think tank for people with large capital reserves. Play BIG was created in recognition of the unique role indiv-
idual wealth holders can play to support social and environmental innovation. It features authentic and compelling stories of wealth activ-
ation, case studies, small group and one-on-one consultation and feedback; reflective personal time sprinkled throughout and a sensitive, experienced group of faculty/hosts facilitating.
As an heir to the Disney family fortune, Abigail Disney has become increasingly public in her encourage-
ment of fellow wealth-holders to put their money to work in service of their values. Founder and the President of the Daphne Foundation, Abby is also a filmmaker whose documentary, Pray the Devil Back to Hell, tells the story of the bold and successful peacemaking women of Liberia.
“…We have got to start a quiet revolution...” –Abigail Disney
Play BIG welcomes newcomers by invitation, as well as alumni from previous gatherings, and is designed for people with discretionary capital of 15 million dollars or more who are interested in becoming more strategic and proactive with their wealth.
Sponsored by: Tides Canada
For more information contact:
Marian Moore
marian@marianmoore.com
(612) 817-2426
Upcoming Events
SoCap 2009
September 1-3, 2009
San Francisco, CA
Social Capital Markets (SoCap) '09, now in its 2nd year, is a unique conference focused on making sense of the times and celebrating the renewed will and determination social change pioneers. Renewal2 is thrilled to present at this event.
http://socialcapitalmarkets.net
Hollyhock Social Venture Institute
September 9-13, 2009
Cortes Island, BC
Join business leaders and social entrepreneurs at the 14th Annual SVI Hollyhock for an intensive, interactive inquiry into how to face the day-to-day challenges of running a socially conscious enterprise. Renewal2 advisor, Tamara Vrooman, CEO of Vancity, will be one of our True Confesssions presenters.
http://renewalpartners.com/svi-hollyhock
Renewal2 Conference Call
September 14, 2009
11:00am PST / 2:00pm EST
Join Paul Richardson and Joel Solomon on an informative call to learn more about our Fund. Joel and Paul will share the Renewal2 story for approximately 20 minutes and then hold an interactive Q&A session.
Please RSVP to:
Jennifer Merryman
jennifer@renewal2.ca
(604) 844-7474 ext 625
Investors' Circle
November 15-17, 2009
Washington, DC
Since 1992, Investors' Circle has grown from a small community of investors interested in exciting, early-stage social enterprises to a thriving network that has invested over $130 million in over 200 companies.
http://investorscircle.net
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