IMPACT THESIS

PIPA BELIEVES IN THE POTENTIAL OF ENTREPRENEURS AND BUSINESSES AS PROTAGONISTS IN CREATING A MORE INCLUSIVE AND SUSTAINABLE WORLD.

Purposeful and driven, committed to regenerating communities and the natural environment

PIPA EMPOWERS ENTREPRENEURS THAT ENHANCE HUMAN POTENTIAL AND WELL-BEING THROUGH SCALABLE BUSINESS MODELS.

PIPA SUPPORTS BUSINESS MODELS THAT ARE:

Disruptive and innovative, solving existing problems in radically new ways

Ambitious and huge, capable of reaching upwards of 5 million people within 10 years

Evidenced with potential for financial return, minimum market size of R$200 million

Ready to goto market, with a ready prototype

OUR MODEL

On a global scale, the major gap in the impact investing ecosystem is the lack of effective incubators and accelerators to provide necessary funding, human capital support, and sector specific expertise to early-stage businesses and entrepreneurs.

PIPELINE ACCELERATORS SEED

8-10 IMPACT INVESTING VC

AND PE FUNDS

PRIVATE EQUITY AND

OTHER COMMERCIAL

GAPS IN BRAZIL

OUR MODEL

8-10 IMPACT INVESTING VC

AND PE FUNDS

PRIVATE EQUITY AND

OTHER COMMERCIAL

INSPIRATIONContentEventsCo-workingEducation

INVESTMENTAccelerationSeed FundAcess to funding

Pipa aims to fill the gap in the ecosystem in Brazil by providing inspiration and investment to high-impact, early/stage entrepreneurs.

WE SEE BRAZIL AS A LAB FOR THE WORLD.

The global population is growing and will reach 9.5 billion people by 2050.

The so-called Base of the Pyramid is going to compose 2/3 of that number.

The elderly will make up 1/4 of the total population.

Alongside this extreme growth, we continue to live in a world that excludes disadvantaged populations, increases stress on natural ecosystems, and only further prevents people from being able to meet their needs in a sustainable way.

In Brazil, many of these challenges are exaggerated:

One of the fastest emerging markets, Brazil is a country with both extreme social challenges and immense potential to be a leader in changing the way the world does business.

We believe that by starting with Brazil and proving success here first, we can eventually bring positive change to the world.

• Brazil is consistently one of the top 10 most unequal countries in the world

• 2 in every 3 Brazilians live on less than R$25 per day

• 1 in every 8 Brazilians is over 60, and the population continues to age

• Less than 30% of the population has more than a primary education

• More than 70% have no access to health insurance

• 72% of deaths are caused by chronic non-transmissible diseases, most of which could have been avoided by better habits

Sources: IBGE 2010, PNAD 2012, CIA Factbook

OUR FRAMEWORK FOR IMPACT To create a more inclusive and sustainable world, Pipa believes the core leverage points are in:

through

1. Helping to better capacitate individuals and connect them with opportunities for economic growth

2. Making learning more affordable, accessible, and effective

MAXIMIZING HUMAN POTENTIAL

GUARANTEEING HUMAN WELL-BEING

through

1. Improving access and quality of health and healthcare services

2. Helping people live in greater harmonywith the natural environment

OUR FRAMEWORK FOR IMPACT

ACCESS & AFFORDABILITY

DIAGNOSTICS

INTEGRAL & PREVENTATIVE HEALTH

TEACHING/LEARNING

MANAGEMENT

BEYOND THE CLASSROOM

RESOURCE USAGE

WASTE & EMISSIONS

CONSCIOUS CONSUMPTION

SOFTWARE FOR:

BIOTECH

BIG DATA & AI

NETWORKS

SKILLS & TECHNICAL TRAINING

CONNECTIONS & OPPORTUNITIES

MANAGEMENT

ACCESS TO MARKETS

TECHNOLOGY WILL BE A KEY PLAYER IN THIS CHANGE.

Technology is advancing exponentially, and the next 100 years in innovation will be proportionally equivalent to more than 20,000 days in today’s time.

This is affecting all sectors of our life, creating solutions that we could not have even imagined 20 years ago.

With rapid advances and dropping costs, technology is allowing for the creation of profitable business models that provide scalable solutions.

BIOTECH COMPUTING 3D PRINTING

BACTERIAL AND ARCHEAL GENOME SEQUENCES SUBMITTED TO GENBANK

Tota

l num

ber o

f gen

omes

1000

2000

3000

4000

1995 2000 2005 2010

EXPONENTIAL GROWTH OF COMPUTING

Calc

ulat

ions

per

Sec

ond

per $

1,000

1

10ˆ15

10ˆ35

10ˆ55

1990 2000 2100

Insect brain

Mouse brain

1 human brain

All human brains

THE NUMBER OF ITEMS ON THINGIVERSE

BREAKTHROUGHInnovations and technologies that offer essential or life-changing products and services.

A BREAKTHROUGH TECHNOLOGY IS AN INNOVATION THAT IS:

solves one of humanity’s greatest challenges, affecting 100 million people globally

has potential to create much greater impact on a global scale

has the ability to radically change the industry or a create new one

REVOLUTIONARY

EXTREMELY SCALABLE

HIGHLY DISRUPTIVE

BIG DATA & AI

Examples of technologies that promise breakthrough potential include:

BIOTECH

NETWORKS

Big Data & AI are increasing volume, velocity, and variety of available information, allowing for large-scale data gathering and analytics that can be applied to a range of industries, from pharmaceuticals and healthcare to retailing and commerce.

Biotech promises great potential in bringing about large-scale changes in health, agriculture, biofuels, and environmental practices. Improvements could change the way we farm, eat, source energy, and are cured.

Networks are transforming the way people work, govern, communicate and live, offering instant connection to engage with real time events on a global level. Around the world, more than 1.2 billion people are already connected through social media or social network sites.

Source: World Economic Forum 2012

AND OTHER EMERGING TECHNOLOGIES

HUMAN POTENTIAL

• Lack of skills

• Limited connections to people and to opportunities

• Limited access to markets

INCOME GENERATIONHelp individuals to achieve their full potential and live a better quality of life through better economic opportunities.

PROBLEMS

Priority Groups:

Better capacitate and connect people with opportunities for economic growth through:

OPPORTUNITIES

• Technical Training

• Opportunities and Connections

• Management

• Access to Markets- Micro-entrepreneurs

- Small businesses

- Small producers

- Elderly

- Youth (12-24)

- Micro-entrepreneurs

- Small businesses

- Small producers

- Elderly

- Youth (15-24)

4 million

6 million

4 million

23 million

33 million Source: IBGE 2011, SEBRAE, IFAD 2011

TECHNICAL TRAINING

Focus Areas:

• Access to technical training and skill building programs

• Innovative ways to provide training

Only 59% youth who believe that post-secondary improved employment opportunities, and more people are looking to technical training.

Enrollments in Technical Courses

2007 2008 2009 2010

PRIVATEPUBLIC Source: INEP/MEC and Itaú BBA

387

393

780

449

479

928

499

538

1.037

545

596

780

57% employers unable to find skilled workers

Large employers have an average 32 vacancies, and 80%

employers would pay at least 20% more for the right talent.*

**Source: Manpower 2010 Talent Shortage Report

Ranked in order of need, Brazil’s labor shortage is greatest for:**

1. Technicians (operators, maintenance technicians, engineers)

2. Manual laborers (electricians, plumbers, carpenters, etc.)

3. Plant operators

4. Administrative administrators

5. Laborers

6. Engineers

7. Drivers

8. Finance and accounting staff

9. IT Technicians

10. Sales Representatives

*Source: McKinsey Survey 2012

OPPORTUNITIES & CONNECTIONS

Focus Areas:

• Connect people to jobs, work or entrepreneurship opportunities

• Helping people expand their networks and horizons of income generation pathways

Increasing access to internet is opening new channels to connect people with income generating opportunities.

people worldwide find work by connecting them with employers globally.

Online employment marketplaces are helping an estimated

12 million

Source: World Bank 2013

The already R$30 billion e-commerce market in Brazil is expected to double within the next 5 years, offering an enormous opportunity for virtual marketplaces.

There are influences on poverty other than lowness of income; income is not the only instrument in generating capabilties

Source: Forbes 2012

- Amaryta Sen

““

Being more connected to a strong network greatlyenhances a person’s ability to generate income.

MANAGEMENT & FINANCIAL TOOLS

Focus Areas:

• Tools and support services for micro-entrepreneurs and small businesses, including administrative, financial, technological and other solutions.

Brazil has no shortage of entrepreneurs.

• 1 in 6 adults is either trying to launch a business or already owns a venture less than 42 months old

• Another 1 in 6 adults is running a moreestablished venture

Individual, small and medium sized entrepreneurs, therefore, have a hard time managing their businesses:

• Limited knowledge about finance and taxes

• Lack of planning

• Mix of business and personal finances

But less than 10% have had any entrepreneurship training.

Current Management Techniques Source: SEBRAE 2009

Financial Software

18%

4.05 million

Spreadsheet, manual control

82%

ACCESS TO MARKETS

Focus Areas:

• Access to better buyers, better prices, and better deals

• Access to technology and information

• Access to capital

The Northeast region of Brazil contains single largest concentration of rural poverty in Latin America, with

Due to a lack of technology and information, some of the main challenges for small producers are:

• efficiency• market access • fair prices

80% living in poverty.

The majority work in agriculture, which as a whole accounts for

15% of the Brazilian workforce.

For small and growing businesses, three of the greatest challenges are:

• access to capital• access to talent• access to markets

Online networks offer unprecedented

access to information and

a way to instantly share data.

• Poorly prepared teachers

• Poor content and methodology

• Limited technology and cutting-edge tools

• Inefficient management

• Good education is expensive

• Low access to higher education

EDUCATIONCreate a society with fully empowered citizens capable of reaching their full potential.

PROBLEMS

Priority Groups:

Make learning more accessible, affordable, and effective through:

OPPORTUNITIES

- Primary

- Secondary

- Post-secondary

31 million

8 million

5 million

• Innovations in teaching/learning

• Better management

• Learning Beyond the Classroom

- Teachers

- BOP

- Education for all ages and all formats- Public

- Private

33 million

6 million

Basic Education

HUMAN POTENTIAL

Source: INEP/MEC and Itaú BBABasic education numbers refer to 2010; ** Post-secondary numbers refer to 2009.

TEACHING/LEARNING

Focus Areas:

• Training for teachers

• Better learning modules, i.e. games, personalized, video-based, tracking, adaptive learning platforms

• Better tools, i.e. courses, educational materials, software

Out of 65 countries, Brazil ranks 53rd in reading and 56th in math and science.

With poorly prepared teachers, ineffective curriculums, and misfit methodologies, student performance is not up to par and

student engagement remains low.

Source: OECD 2012

0

50

100

150

200

250

300

350

99 00 01 02 03 04 05 06 07 08 09 10

3 12 2340 54

73

113

154187

220247

291

Municipalities using the learning system in the state of São Paulo

Source: Fundação Lemann and Itaú BBA

MANAGEMENT

Focus Areas:

• Automated administrative management and support services, like ERP

• Educational management solutions

Perhaps the biggest challenge in formal education in Brazil is

poor management.

Teachers and students have very high absenteeism, school directors do not have a background in business or management,

and management is very inefficient.

This is a problem at the school, municipal, state and federal level.

70%of Brazilian Schools don’t have

administration softwares

90%of those that do, use 3 or more softwares

135.000institutions still use paper

BEYOND THE CLASSROOM

Focus Areas:

• Affordable and accessible learning from online, including distance learning, MOOCs, preparatory platforms

• Complementary learning aids including test prep

• Collaborative learning platforms, like class sharing, social networks

Source: INEP/MEC and Itaú BBA

Educational Cycle (in Millions)

Start the primary

education

Conclude the

primary education

Conclude the

secondary education

Enroll in the post-

secondary

Garduate from the

post-secondary

6.0

2.51.8 1.5

0.8

Affordability and access to learning opportunities beyond the classroom are a problem.

Affordability is one of the most important factors why youth don’t continue to study.

Source: McKinsey Survey 2012

D-learning already accounts for

14.6% of higher education.

There are already 2.6 million people enrolled in different courses provided via distance learning.

Source: Abril Education Report

HUMAN WELL-BEING

• Insufficient access to healthcare and sanitation

• Poor quality of public care

• Lack of infrastructure and high-level professionals

• High presence of non-transmittable diseases

• Fragmented approach to healthcare

HEALTHEnsure that people live longer, healthier, happier lives

PROBLEMS

Priority Groups:

Improve access and quality of health and healthcare through:

OPPORTUNITIES

- Diabetes

- Alzheimer

- HIV/AIDS

14 million*

1.2 million*

718.000**

• Access and Affordability

• Diagnostics

• Integral and Preventative Health

- BOP

- Elderly

- Critical or wide-spread illnesses

Critical and wide-spread diseases

Source: SUS*, Ministerio de Saúde**

ACCESS & AFFORDABILITY

Focus Areas:

• Alternative and creative forms to provide affordable basic health services

• Complementary products and services to SUS

• More effective models of medical care outside of urban centers

• Quality services and care for the elderly

• High quality low cost treatment

19% of Brazilians do not have access to potable water

57% of Brazilians still do not have sewage collection

60% of these problems occur in the North and Northeast regions.

At the institutional-level, there is a lack infrastructure, technology,

and high-level professionals.

1.72 physicians/1,000 population

2.4 hospital beds/1,000 population

At the patient-level, there is a lack information on what healthcare services are available.

Source: Trata Brasil 2010

Source: OCED 2010

60% i

DIAGNOSTICS

of deaths from AIDS in Brazil are associated with late diagnosis

There is a growing digital ecosystem for tools and instruments that make diagnostics, care, and treatment available from home:

• Wireless sensors

• Touch-free sensors

• Tracking devices

Source: Ministry of Health 2011

Focus Areas:

• Accessible diagnosis for all people

• Do-it-yourself, easy and friendly diagnosis in your hand

• Portability and mobility for health professionals

There is also a need for smaller clinics and new machinery that can provide local on-site access to diagnose, treat, and prescribe the appropriate medicine.

40%

more expensive to treat cancer diagnosed at an advanced stage

4.6times

Source: See Change Health

INTEGRAL & PREVENTATIVE HEALTH

Focus Areas:

• Creation of healthy day-to-day attitude and habits

• Interactions with the health care system and a more active role for the patient as a participant

• Collaboration between different health professional and multidisciplinary health teams

Better well-being,better health, less cost

Source: Trata Brasil 2010 Source: OCED 2010

Well-being is not simply feeling well.

It involves 7 dimensions:

For businesses:

People with high-level ofwell-being cost:

Having a higher level of well-being is associated with:

5%

24%

5%

less absences from work

less loss of productivity

better performance

59%

Mental

Physical

Socioenvironmental

Cultural

Professional

Emotional

HUMAN WELL-BEING

• Humanity currently living and consuming well beyond the limits of the planet

• Rising consumption

• Increasing waste

SUSTAINABLE LIVINGEncourage people to live in greater harmony with the natural environment.

PROBLEMS

The target users are:

- Urban Consumers

- Companies

Software solutions for sustainable consumption and efficient use natural resources through:

OPPORTUNITIES

• Resource Usage

• Waste and Emissions

• Conscious Consumption

Sources: Market & Market*

Global Markets

Energy Management Systems

Sustainable E-commerce

$17.4 billion*

SOFTWARE SOLUTIONSSustainable consumption includes responsible purchasing, consuming, disposing of products.

Source: CIA Factbook 2012

Focus Areas:

• E-commerce for sustainable goods and services

• Information and tools for efficiency, reduction, and education

• Collaboration and sharing networksOf 64 million tons of waste produced in 2012,

less than 40% was sent to a proper place of disposal

and nearly 10% were not even collected.

Every year, Brazilians are consuming more and throwing more away.

Energy consumption has increased 40 billion kWh in the last 5 years and continues to rise.

Software solutions can facilitate the integration of more sustainable choices to consume more efficiently in daily life.

Source: ABRELPE 2012

BUILDING THE FUTURE OF THE IMPACT INVESTING INDUSTRY.