Practical Business Solutions for Social Change

August, 2010

Introduction

The Acara Institute was created to tackle some of the largest challenges facing the globe, by connecting individuals and organizations with an interest in creating practical business solutions.

Goals: • Social Change – Focus on the Big Issues

– Energy– Health (medicine, nutrition, hygiene)– Environment– Water– Education

• Business Solutions – Lessons/Best Practices learned from Industry

– Self-sustaining (support through profitability)– Self-growing (single business, franchise, copies, etc)

Finalist MN SVP Cup

• One of four finalists, Social Venture Partner sponsored, part of MN Cup. • Comments on SVP Facebook page in support:• “Participating in the 2010 ACARA challenge was one of the best things I did in my 4

years at college.”• “Acara connects with somewhere inside me on how I would like to contribute to

improve the world around me and lives of millions of people not as fortunate as most of us”

• “Participating in the Acara Institute has helped to me to start taking steps towards making a real difference.”

• “Being a mentor to the students, helping them ask the right questions and in the end seeing a solid concept shape up, was an extremely rewarding experience for me.”

• “The Acara Institute is a testament to the good that can be done if great minds from across the globe come together to tackle the world's toughest problems. From time to time, we all feel like small players on a very large stage...too small to make a difference. The Acara Institute knocks down that wall and reminds us that we can all make a difference if we just simply roll up our sleeves and get to it!”

Programs

Acara Challenge (AC)• Develop practical social business models

Sales for Social Impact (SSI)• Develop sales plans for existing social business

products or services

Summer Institute / Protobusinesses• Incubate the best

Acara Corps Fellowships/Interns• Give Acara alumni an opportunity to continue to

contribute

Online Presence • Build a community

The Acara Challenge

Goal to create viable businesses while providing

participating student teams with real-world commercialization opportunities.

Inputsan initial problem space I background and

resources I framework I mentor network I exposure to industry and to venture capital.

Outcomethe anticipated outcome is a range of business

concepts that are ready to be brought to “realization” by the students on the teams or by other interested parties.

The 2010 Acara Challenge

Context: under-served and marginalized communities in India.

Focus: water and energy

two topics that have major environmental health impacts worldwide.

Challenge Options: student teams may choose between

Create a business plan that addresses a primary issue related to clean water.

Create a business plan that addresses a primary issue related to clean energy for cooking.

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Participating Universities

United States• Arizona State University• Cornell • Duke • Illinois Institute of Technology • University of Hartford• University of Illinois – Chicago• University of Minnesota • Yale

India• India Institute of Technology – Bombay• India Institute of Technology – Delhi • India Institute of Technology – Roorkee • KJ Somaiya Institute of Management, Mumbai• TERI University, New Delhi• Vellore Institute of Technology, Vellore

Participants• Approx. 220 students in the two countries• Approx. 40 mentors• Approx. 50 judges

Business Teams• 25 Business plans developed

Sales for Social Impact

Goal To create viable sales plans for social ventures.

Inputsa social business with a product or service I

background and curriculum I framework I mentor network I exposure to industry.

Outcomethe anticipated outcome is a range of sales plans that

are ready to be brought to “realization” by the students on the teams or by the social venture.

Participants

United States• Baylor• DePaul• Houston• Indiana• North Carolina A&T• Southern University• St. Catherine – St. Paul

Uganda• Makerere University, Kampala

Participants• Compatible Technologies International• Expect 25-30 mentors• Expect approx 100 US students• Expect 20-30 Uganda students

Sales Plans• Expect 20-25 sales plans

Acara Corps Fellowships

Goal To provide further opportunity for talented and

passionate alumni of Acara programs to continue to contribute

InputsStudents who participated in an Acara

program I framework I mentor network I

OutcomeStudents get more deeply involved, further

develop skills and interest. Acara and proto businesses also benefit.

Acara Corps Fellowships

Anirudra and Vikash– MBA Somaiya, Mumbai. Developed NGO relationships in Mumbai

Yash, Cashmira and Maninder – Undergrad Roorkee. Worked with teams myRain and Bioserv

Elliott (Leonardo’s Basement), Jane (UIC undergrad) and Karthik (UMN grad)Worked with Acara US

Raman and Himanshu – grad VIT, Vellore. Worked with teams JAL and VellHart

Summer Institute

Goal to transition best business plans from school

project to a proto business ready to fund.

InputsBusiness plans I committed team members I

framework I mentor network I exposure to industry experts and venture capital I angel investors

Outcomethe anticipated outcome is a “fundable” plan

and a team ready to launch.

Incubation

University of Minnesota Acara Summer Institute

• Travel to India to conduct further research, for example to assess risks and to validate major assumptions in their business plan.

- Representatives from 4 US teams were in India in June

• Residence at University of Minnesota’s Institute on the Environment in St. Paul, Minnesota (3 weeks)

- work with Acara team to refine the business model.

• One team, myRain (drip irrigation) received a $10K commitment from angel funders at the end of the Summer Institute

• Eight Finalist Summaries follow

myRain

• Drip Irrigation is gravity fed and delivers directly to the root system. This technology ensures lower strain on the water table, less money spent on irrigation and higher yield. This team from IIT Roorkee and University of Minnesota, plans to partner with IDEI (International Development Enterprises, India) for manufacturing and distribution and handle Sales and Marketing by themselves.

• Status: Had a US team member in India, set up eight farmers with training and a drip irrigation kits. Working on hiring an India operations manager. Acara angel investors have committed $10K USD to get team to next step.

VellHart

• Effluent discharge from tanneries in the Vellore district of Tamil Nadu has caused severe damage to health and daily lives of people and agricultural activities. Using a well established chromium recovery and reuse mechanism, this team from VIT and U of Hartford plans to target about 120 tanneries in the Vellore region that do not use a chrome recovery system. The incentive for the tanneries is cost savings.

• Status: Two US team members spent time in India, one India team member coming to US in August. On the ground research showed that there is an opportunity to outsource the running of the chrome recovery systems. Technical evaluation under way.

JAL

• This team from UIC and VIT wants to provide economical high-quality drinking water using a low-pressure solar distillation technology and hassle-free distribution system. Their target community is the Ranipet area of Tamil Nadu state in South India.

• Status. 2 members of US team spent time in India. Members of US and India team were at SI at IonE. Technical risks in design still exist, prototype assessment underway in Chicago and Vellore.

BioServ

• Indoor smoke from solid fuels kills millions in Indians in rural areas every year. Inspired by the success of BioGas in generating power, Team BioServe from IIT Roorkee and University of Minnesota, plans to revive all non-functional biogas plants in India.

• Status. Business model changed significantly based on extensive field research. Fixing unused digesters not really feasible. However, there is an opportunity to get digesters working in cold winter weather.

• Next steps: Develop prototypes, and test over winter.

Mango Solar

• A hybrid cook stove which capitalizes on solar radiation (during the day when sun is there) and can be used as a biomass stove, when more heat is required and on cloudy days and at night! Team ‘Mango Solar’ presents an environment friendly and affordable product with health and environmental benefits, cost savings and free repair and maintenance.

• Status. Won an innovation for entrepreneurs competition in India, developing a prototype for testing.

Food for Thought

• Meet the Green Tiffing Company guys from TERI University and Yale. They plan to use cow-dung to run a biogas plant which generates clean gas for cooking. This food is for thousands of young professionals based in Delhi. Team ‘Food for Thought’ wants to provide consistently hygienic food, reliable service delivery and variety, all at a competitive price. They care a lot about their venture’s economic, social and ecological impact and are planning to provide training services in cooking and use their profit to fund community projects.

• Status. Continued work and planning going on with team.

Suryopahar

• This team from K.J. SIMSR in Mumbai plans to provide clean cooking solution to villages, schools and hostels. Opinion leaders will be brought in to educate communities about the benefits of solar cooking, villagers will gain employment by assembling the cookers and banks/financial institutions will brought in to provide small loans to prospective consumers.

• Status. Team continuing planning to do a field test.

rEVOLVE

• Providing a sustainable solution to water sanitation and water scarcity through decentralized waste facilities, using Rotating Biological Contractors is what this team from ASU and TERI University plans to do. The team plans to target Grey Water users (golf courses, gardens, resorts and industrial users) and farmers and horticulturists as their customers.

• Status. No further activity

Online

• Online communities de rigueur• LinkedIN Acara group active with mentors and other professionals, about 350

members• Facebook, more our student demographic, just started late April. Many teams

have their own pages• Twitter and blog, along with above, written/managed by Sarabjeet Singh in

Mumbai • Acara also uses many online tools, for virtual judging, meetings, collaboration,

etc.

Moving Ahead

• Move to more of a stage – gate process in winnowing teams advancing

• Build up mentor network, esp. in India.• Develop more content material/structure, esp for India

universities (SSI development leveraged here)• Stay approx same size for spring 2011. Strengthen

infrastructure and local university mgmt.• Move Acara Challenge to Fall starting in 2011 to better

accommodate follow on (more time to assess teams and prepare for Summer Institute)

• Develop a venture fund, supported by angel investors, to support the Acara protobusinesses.

Summary

• Overall, most students find this to be the most challenging but rewarding course they have taken.

• Real businesses are possible.

• Global collaboration hard but possible. There is no silver bullet to figuring it out but Acara is putting the pieces together.

• Acara has built up a significant network of committed people in a short period of time, all willing to make things work.