Fair Phone Presentation
Fair Phone Presentation
Non-profit
Social enterprise
Funding start of 2013
Tapped into feeling, not market.
Importance on gaining momentum not profit.
Previously, funding from non-profit organizations.
Reliance on impact investors, not standard capital markets.
Sales and marketing through Facebook, 22,000 members with over 10,000 preorders.
Tantalum Sourced from Congo on the basis of fair trade and sustainability. Non-violence.
Limited amount of units 23,439 till March 2014.
Price is 310 euros inclusive of VAT (21%).
Potential market is nowhere close to iPhone or Samsung, however, it is for responsible buyers.
70,000 discarded phones from Ghana to be used for raw materials for the next batch of Fair
Phones.
Next batch to be available by 31st March, 2015.
Reusing discarded phones allows us to keep costs low while also using the best quality
sustainable materials.
Every step in production is exposed to the outsider so there is mutual trust.
We formed our own NGO 3 years ago in order to generate capital.
Various crowd funding techniques used in order to generate capital Donations.
WAAG Society (Insititute for Art, Science and Technology), Dutch Government, Stichting DOEN
(Socially and environmentally responsible entrepreneurs.)
First batch requirement from investors 5,000 preorder units required to start.
Crowdfunding is the most suitable way to fund this as it shares the philosophy of the company
World interest in mutual collaboration for sustainable practices.
Too many capital investors will take away the companys authority over its own products and
sway us away from our original mission.
Due to small size of our company we can form more direct and open relationships with raw
material suppliers Edge over larger companies like Apple and Samsung, due to lack of
transparency.
Main investor categories are Impact Investors Who care about what their investments will do
to the world, socially, environmentally and politically.
Impact investments are investments made into companies, organizations, and funds with the
intention to generate a measurable, beneficial social or environmental impact alongside a
financial return. Impact investments can be made in both emerging and developed markets,
and target a range of returns from below-market to above-market rates, depending upon the
circumstances.
The benefit is that even though investors are still seeking to get a profit, they are in line with
our companys philosophy of contributing through their investments to the sustainable and
fair development of world economies.
Much higher ratio of Impact investors in Germany as compared to rest of Europe:
First, with a GDP of US$ 3.6 trillion in 2011, Germany maintains the worlds fourth largest
(and Europes largest) national economy, outpacing other European economies like France
(US$ 2.8 trillion) and the UK (US$ 2.5 trillion). So far, Germany has navigated comparatively
well through the economic crisis. Its economic success has even increased its political
influence in Europe and many look to Germany as a shining example.
Impact investors are primarily distinguished by their intention to address social and
environmental challenges through their deployment of capital. For example, criteria to
evaluate the positive social and/or environmental outcomes of investments are an integrated
component of the investment process. In contrast, practitioners of socially responsible
investing also include negative (avoidance) criteria as part of their investment decisions.
The welfare spending by public authorities in Germany as a percentage of the GDP is
significantly higher (26.7% vs. 21.3% in the UK and 16.0% in the US in 2005). Along the
same lines, the public authorities are responsible for a much greater share of non-profit
organizations revenues in Germany (64% in 1995) compared with the UK (47%) and the US
(31%), where philanthropy and private contributions play a much more important role..
The German market for sustainable investments has been growing at an annual rate of 28
percent since 2005. In 2011, the market constituted 63 billion (1.2% of the overall
investment market).