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What We Do: Social Investment Partners

Fund-Based Support

Operational Flow Chart
Operational Flow Chart
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  • SIP established the Japan Venture Philanthropy Fund (JVPF) in March 2013 to provide financial and non-financial support to social purpose organizations, with an initial endowment of ¥100M.
  • The JVPF is set up under The Nippon Foundation, a public interest incorporated foundation. SIP works together with The Nippon Foundation to manage the fund.
  • As the first full-scale venture philanthropy fund in Japan, the JVPF aims to support social purpose organizations to aid their development as sustainable organizations. Our focus areas are those that contribute in sustaining the Japanese society through fostering the next generation, specifically "education and youth employment", "childcare and women empowerment" and "community development".
  • The social purpose organizations receiving support can take any legal form of entity, from NPOs to corporations. They are selected by SIP's thorough due diligence in consideration of innovative solution to social issues, scale-out potential, business sustainability, management leadership and origination system, etc.
  • SIP supports the sustainable growth of its support receiving organization by providing not only financial support, but knowledge from the business sector and expertise in business management on a mid-long term basis.
Fund Name: JVPF
the Japan Venture Philanthropy Fund (JVPF)
Fund Amount: ¥296 million (as of the end of March 2017)
Established: March 2013
Managed By: the Nippon Foundation
Social Investment Partners
Fund Management:
Organization Function Members
Working Group
(Held as required)
Identify projects, examination of supporting programs, perform ground-level operations for the business, including monitoring and reporting to Selection Committee Tomoya Shiraishi, CEO, SIP
Ken Ito, Board Member, SIP
Yoshi Tabuchi, Managing Director, SIP
Nanako Kudo, Associate Director,
Social Finance Social Innovation Team,
The Nippon Foundation
Kanako Shinden,
Social Finance Social Innovation Team,
The Nippon Foundation
Selection Committee
(Held every quarter
in principle,
and anytime
as required.)
Deliberation & review of supporting organization, monitoring of overall business every quarter Tomoya Shiraishi, CEO, SIP
Hiroshi Nonomiya, Board Member, SIP
Toru Mio, Board Member, SIP
Shuichi Ohno, Executive Director,
The Nippon Foundation
Mitsuaki Aoyagi, Senior Program Director,
Social Innovation Program Division,
The Nippon Foundation

Basic Strategy

¥20-30M in funding is provided per project
  • Optimal funding plan (grants or financing) chosen based on the feasibility of the business
  • Use of funds is unrestricted-- support receiving organization commits to the achievement of a multi-year plan
Proactive Search & Selection of Projects
  • Organizations from the Nippon Foundation database and SIP’s network are screened
  • Multiple interviews, and possibly a probationary period lasting over a year as part of the refining process
Mid-long term managerial support
  • Seek the target organization’s commitment to achieve business plan goals, governance through board of directors
  • Provision of comprehensive support from professional organizations (legal advice, strategic consulting, advocacy consulting, and accounting)
Strictly performed Due Diligence
  • Reconfirm the business segment and define social impact/KPI to formulate business plans together with the target organization
  • Clarify challenges & support to be provided to enhance probability of achieving business plan
  • The organization receiving support is required to invest a lot of time as well
* "KPI" : Key Performance Indicators

Areas of Focus

We focus on areas that contribute in sustaining the Japanese society through fostering the next generation.

Education & Youth Employment

Unequal educational opportunity due to economic inequality,
Increase of the socially withdrawn/NEETs,
Increase in youth unemployment,
Increase in the population of young homeless etc.

Childcare & Women Empowerment
by Women in the Workplace

Aging population and declining birthrate,
Difficulty for women to continue working,
Difficulty in child rearing due to changes in family structure (expansion of nuclear families) etc.

Community Development

Weakening of the regional community,
Ailing primary industries.

Criteria for Selection

Selection of the organization to provide support based on 5 selection criteria (1-3 organizations selected per year)

Measurable Social Impact

Able to visualize and measure the social impact of its business model
Identification of the output and outcomes of SPOs is possible
Able to visualize social impact from quantified outcomes

Sustainability

Has the intention and ability to continuously operate its business.

Scalability

Has the potential for quantitative and qualitative expansion of its business to solve social issues which go beyond the limits of the initial targeted areas.

Management Leadership Capacity

Holds a clear mission, vision, strategy, and leadership within the organization.

Shared Mission & Vision

Is able to share its social awareness, mission/vision and goals of its activities wth SIP.

Due Diligence Process

Period Investigation point Details Aim
1
s
t

m
o
n
t
h
  1. Identification of social issue and positioning of the organization
  • Context of the social issue, current and future trends
  • Confirmation of government policies
  • Industry mapping and position of organization
  • Reconfirm target segment
  • Consider planning such as the scale-out model as a reference for strategy formulation
  1. Social impact
  • Assessment of social impact based on the logic model
    • Identification of beneficiaries
    • Organize the outcomes for each beneficiary
    • Organize the ultimate social impacts
  • Confirm stakeholders value chain
  • Set objective numerical values such as SROI and KPI
  • Measure the beneficiaries' needs and impacts
2
n
d

m
o
n
t
h
  1. Feasibility and revenue model analysis
  • Understanding the business and its characteristics
  • Analysis of a revenue model for each key business
  • Analysis of past revenue performance
  • As knowledge base for business strategy formulation
  • As a model for creating the financial plan
  1. Business strategy
  • Specific social impacts that should be aimed for Mid-term(3-5 years)strategy
    • Goal imaging for 3-5 years ahead
    • Specific numerical targets per business segment
  • Set internal and external guidelines
  • Identify lacking resources
  • Identify necessary external support (Pro-bono, industry collaboration)
  1. Business Plan
  • Revenue/Financial planning(PL, BS, CF)
  • Scenario Analysis (Base, Best, Worst)
  • Scheduling
  • Financing plan
  • Risk management
  1. Organizational analysis
  • Decision making, job assignment, risk management scheme
  • Management system for general affairs, accounting, finance, human resources
  • Desirable governance system
  • Identify organization/human resources needing reinforcement
3
r
d

m
o
n
t
h
  1. SWOT Analysis
  • Strength, Weakness, Opportunity & Threat
  • Reflection to business plans
  1. Financing plan
  • Amount, usage, timing
  • Key collateral conditions, governance conditions
 
  1. Exit strategy and support plan
  • Set specific goals with time limit (KPI, Scale-out, etc.)
  • Chronological supporting scheme based on the business plan
  • Identify in what state the provision of support will end

Supporting Process

Phase Activities
Selection
& Evaluation
(Entry)
Target Research

・Research target organizations to support based on selection criteria, select group of candidates for funding

Selection
of
Candidates

・Evaluate the feasibility of target organizations, select final candidate based on specific aid proposals and expectations on the target's business growth

・Advise the Fund's Grant Committee on the selection process

Support
(Adding value)
Formulation
of Strategy
& Goals

・Based on knowledge obtained through the evaluation of business feasibility, discuss strategy with support receiving organization, set up detailed business plan, period of funding and project to be funded

・Consult with support receiving organization to establish performance indicators and business goals

Funding

・Provide the necessary financial support through the fund to business activities in order to achieve its goals.

Strategy
Implementation
Support

・In addition to SIP-supported projects, outside resources from pro-bono partners and cooperative network may be brought in as needed for non-financial support

Regular
Progress
Evaluation

・Progress is monitored, continuation of support is discussed and determined

Reporting

・Carry out reporting activities based on the use of indicators which have been agreed upon, and provide feedback to the support receiving organization.

End of Support
(Exit)
Exit Decision

・Termination of support is determined based on consultation with supporting organization through the monitoring process (1) when the business phase has reached the exit level agreed upon at the start of funding, or (2) if supporting organization becomes unable to meet quality standards for selection

Evaluation
of Outcome
& Follow-Up

・Introduce external financial and network support as needed to support the continuation and expansion of the supporting organization's business

・Prepare progress reports throughout funding period, reporting to the Fund and to external stakeholders

Portfolio (support receiving organization)

Organization Name Field Location Activities Start
of Support
Funding
Amount
Funding
Format
  • Childcare & Women Empowerment
  • Revitalizing Local Communities
Chiba
prefecture
Support for
developmentally
challenged pre-school age
children and their parents
March
2016
¥30 million Grant
  • Childcare & Women Empowerment
Kanazawa prefecture promotes community building
for parents to share the
responsibilities of childcare
amongst their peers.
September
2015
¥30 million Convertible Bond
  • Education
Minato-ku,
Tokyo
Selects and trains teachers
mainly from candidates
with business background
and delegate them
to public schools
January
2015
¥30 million
(with milestone)
Grant
  • Education
  • Women's Participation in the Workplace
  • Revitalizing Local Communities
Minato-ku,
Tokyo
Operates after-school
programs for elementary
school students
December
2013
¥20 million Grant