BonVenture Management GmbH

Pettenkoferstrasse 37
D-80336 Munich
Germany
www.bonventure.de
Year founded: 2003

The BonVenture Group, based in Munich, Germany funds companies and organisations with a social and/or ecological purpose in German-speaking countries. It looks to invest in projects that are innovative, have a strong social impact, and are led by motivated and committed social entrepreneurs. BonVenture expects these organisations to be financially self-sustaining in the long-term. Its mission is to tackle and contribute to the reduction of social and ecological problems, improve the efficiency and transparency in the social and ecological sector, and set an example for sustainable, social, and ecological investments combining humanity and economic efficiency.

The Group includes three organisations: BonVenture I GmbH & Co. KG (form of incorporation for German venture capital funds) and BonVenture gGmbH (similar to a foundation), which are managed by BonVenture Management GmbH. Investors can either become limited partners in the venture capital fund or they can make tax-deductible donations and charitable contributions to the foundation. The advisory board of BonVenture Management GmbH decides on the investment decisions of the venture capital fund. The Board of the Trustees of the BonVenture Foundation decides on investments of the foundation entity. BonVenture Management GmbH staff screen and implement the investments into the partner organisations.

The financing mechanism is determined by the project’s need, and depending on if it is an investment (BonVenture I) or a project of the BonVenture gGmbH that can give donations (if any money at all, it may also be a project that gets only support in the form of business coaching etc.). The current size of the fund is €5.5 million, with a target to grow to €15 – 20 million within the next one or two years. BonVenture takes a triple-bottom-line investment approach, setting financial, social, and ecological objectives as benchmarks. The primary objective is to reach a high social impact. The financial objective is capital preservation, with an expected rate of return between 6% and 10% per year.

Applied venture philanthropy
Following traditional venture philanthropy principles, BonVenture applies venture capital techniques to the social and ecological sector and provides its projects with long-term financial resources, non-financial services, and access to its network. Typically, BonVenture invests €100,000 – 500,000 per project, at the same time as other co-investors, through equity financing, mezzanine financing, or loans with or without collateral. At the same time, BonVenture is a non-profit activity for its investors as returned capital is reinvested.

Currently, BonVenture supports projects that address the following themes:

  • Children and teenagers, disabled or elderly people as well as socially disadvantaged individuals;
  • Unemployment and education;
  • Medical care;
  • Innovative social services;
  • Food and water quality;
  • Solar and regenerative energy;
  • Environmental protection and recycling;
  • Protection of nature and species; and
  • Other ecological technologies.

Projects are based in Germany, Austria, or Switzerland and can be at the start-up, early, or expansion stage. A main selection criterion is that the social entrepreneur who initiated the project is accelerating the project. Prospective applications undergo extensive due diligence during the pre-investment stage, before any commitment is made.

Selected projects are financed in tranches, according to pre-defined milestones and are actively supported through close co-operation. The typical investment period is three years for expansion with mezzanine financing, and eight years if the organisation starts with seed financing. Financial resources are to be spread over 15-20 portfolio organisations, thus reducing BonVenture’s risk. The venture philanthropy portfolio currently includes: DialogMuseum GmbH, JobTV24 GmbH, Parlamentwatch GmbH, Kinderzentren Kunterbunt e.V., Solarlite GmbH, and Vermittlungscoach Gruppe (German Work Placement Coach Association). Investments made through the Foundation currently include: AETAS Lebens- und Trauerkultur GmbH & CoKG, Ashoka Germany, BISS e.V. (Citizens in Social Difficulty), LobbyControl e.V., Kulturbunt e.V., and studienaktie.org.

In addition to financing, BonVenture supports its projects with non-financial services, such as individual counselling on various business issues and infrastructure support. It provides them with access to a network of experts, other social entrepreneurs and people active/knowledgeable in the field of venture philanthropy. The so-far bi-annual ‘BonVenture Forum’ is a one-day event bringing together all of the people in the greater BonVenture network. Starting in 2008, BonVenture will hold annual get-togethers for its social entrepreneurs. This meeting will give them an additional opportunity to meet each other and the representatives of BonVenture.

Assessing impact
BonVenture presently measures social impact using key performance indicators regularly submitted by its projects. These include financial data or data depending on the actual focus of the project. For example, DialogMuseum reports data on the number of visitors and disabled employees, Parliamentwatch GmbH reports on visitors to the project's website, and Kunterbunt e.V. on the number of participants in recreational activities offered. BonVenture is working on refining its key performance indicators to adequately measure social impact.

Engaged partnerships: DialogMuseum and JobTV 24
DialogMuseum GmbH, for example, was granted a loan to bring its concept of ‘Dialogue in the dark’ to ‘DialogMuseum’ in Frankfurt, where a permanent exhibition allows visitors to take a tour in complete darkness in order to experience the world as a blind person does. The tour is guided by a blind person, which not only facilitates open-minded encounters but also provides an innovative way of creating opportunities for disabled and disadvantaged people.

An example of an equity investment is JobTV 24, the first German broadcaster and video portal dedicated to providing round the clock advice on jobs, careers and self-employment, which began broadcasting in January 2006. While since January 2008 operating as a video portal only, JobTV24 provides a wide range of interactive information services.

design + build + maintain TRANSFORM