Louka T. Katseli, Chair of the BoD - CSR in Greececsringreece.gr/forum/2016/ppt/katseli.pdf ·...

Athens, June 2016

Louka T. Katseli, Chair of the BoD

An Innovative Program

for Social Entrepreneurship

act4Greece

National Bank of Greece 2

Presentation Structure

• act4Greece crowdfunding platform: why NBG?

• act4Greece: a platform to support society 2

1

3 act4Greece: a platform to support entrepreneurship

part of the program

act4Greece


1. Crowdfunding: A Growing Market

Crowdfunding types

Donation 1

Reward-based

Lending-based

Equity-based

Hybrid-based

Royalty-based

2

3

4

5

6

Crowdfunding is a simple, widely

known fundraising activity, by which

any natural or legal person – whether

an individual, business or any other

body or NGO – can support financially,

in line with their means, in kind or cash,

various social and business initiatives

that benefit the community and the

environment

16.2

34.4

2014 2015

3.2

7.4

2014 2015

Global (bn €)

Europe (bn €)

The International Experience

act4Greece


1. Crowdfunding: A Growing Market

The International Experience: The Brexit Effect on crowdfunding

The UK’s referendum result has been announced and the decision to leave the EU has shocked many. Particularly in Cambridge,

where Crowdsurfer is headquartered, which was very pro-‘Remain’.

With the banks and currency markets in disarray, UK funding shortages will likely continue and could get worse as uncertainty and

doubt fuel further caution. This increases the fundraiser push to crowd finance that has enabled the industry’s growth over the last

8 years.

1.To contain the market fallout, the Bank of England could add billions into circulation and seek to keep interest rates low. This will

result in savers/investors continuing to find few opportunities from traditional finance to make a return on their money. In turn

increasing the investor push to crowd finance, where better returns are available.

2.Doubt and uncertainty abound in just about everything financial and economic, so money will seek out new avenues. Crowd

finance has evolved to offer a diverse range of different investment opportunities, whether it be by sector, funding type or

geography. This diversity will prove attractive.

3.An increased perception of risk will lead to a renewed focus on the due diligence applied to those seeking finance through the

crowd. Whilst, this may slow the growth of the industry a little, it will quicken the transparency and subsequent understanding of the

investment opportunities offered.

Watch this space.

Emily Mackay

CROWDSURFER

act4Greece


1. Crowdfunding: a growing market

Partnership with SPEAR; businesses or charities to successfully implement a responsible project and to

obtain a more advantageous loan thanks to solidarity savers. In 2014 4 projects were financed with

social and environmental value added for a total of 750,000 euros..

Launched in 2014 a crowdfunding website (Bolero) connecting entrepreneurs with investors. KBC sees

crowdfinance as a valuable way for innovative startups & SMEs to obtain financing.

ABN AMRO was the first bank to run a crowdfunding pilot platform in 2012.

Partnership with Assetz Capital and Funding Circle to finance SMEs (P2B lending)

Partnership with Funding Circle to finance SMEs and start-ups (P2P lending).

The first Swiss bank to enter the crowdlending business. It has joined forces with Swisscom to add

crowdlending to its range of services with the miteinander-erfolgreich.ch crowdfunding marketplace. .

27-04-2016 The first Bank in Finland to offer its clients equity-crowdfunding

The Banks’ Experience

Strategic partner of the wissed platform in France

act4Greece


Advantages Risks

1. Crowdfunding: Advantages and Risks

• counterparty (or credit) risk

• risk of fraud

• operational risk

• liquidity risk

• legal risk

• money laundering

• alternative method of financing combined

with other financing sources.

• broadening of sponsoring options for CSR

• risk reduction for the investor who can invest

relatively small amounts compared to classic

investment options; investors can track

projects’ progress.

• access to more and bigger investment

networks.

• easy and quick procedures to raise funds.

• synergies across multiple stakeholders

(foundations, donors, NGOs etc.)

act4Greece


2. National Bank of Greece: 175 years of history

National Bank of Greece, established in1841, is known and trusted for its substantive

contributions to the country’s economic and social life.

Reputation and Trust

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3. National Bank of Greece: CSR Mission

Responsibility

NBG a “Responsible Citizen”

NBG aims for high standards of corporate citizenship by preserving and promoting

universal human values, including the welfare of the community as well as social,

environmental, intellectual and cultural values.

Resp

ect

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man

Rig

hts

Resp

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om

y

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ort

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s, c

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uca

tio

n

Ind

ep

en

den

ce

Vision

Responsibility

act4Greece


3. National Bank of Greece: CSR

Humankind

Environment

Culture

highlight and preserve the

Greek cultural heritage.

Support activates related to

history, the arts, customs and

traditions in Greece.

support vulnerable social groups;

enhance services related to health,

education and social welfare;

contribute to the overall

improvement of the life of the

society

implementation of a well-aimed

environmental policy; sustainable

finance; environmental awareness of

shareholders, customers and staff

Pioneering

Three core lines of CSR action

2

3

1

act4Greece



• act4Greece Crowdfunding Platform: why NBG?

• act4Greece: a platform to support society

3 act4Greece: a platform to support entrepreneurship

part of the program

1

2

act4Greece


act4Greece: social goals and areas of interest

1. welfare, health & solidarity

2. social economy & entrepreneurship

3. culture & cultural entrepreneurship

4. research, education & training

5. youth & innovative entrepreneurship

6. environment & sustainability

7. sports activities

areas of interest

goals

• to support a broad spectrum of

initiatives and projects in the area of

social and developmental banking.

• to facilitate and manage funds offered

by individuals and legal entities.

• the areas of activity are chosen based on current

conditions in the Greek society and economy.

• chosen areas and activities aim at enhancing awareness

and broadening public participation in order to support

collective social and developmental initiatives and to

highlight the value-added of solidarity and social

engagement in facing common challenges.

act4Greece


act4Greece: current strategic partners

act4Greece


act4Greece : governance structure

Management Committee

Operational support

Projects Donors

Strategy Committee

Social economy

&

entrepreneurship

Culture &

cultural

entrepreneurship

Youth &

innovative

entrepreneurship

Research,

education &

training

Environment &

sustainability

. Social protection,

health &

solidarity

Thematic Areas

Sports

activities

NGO’s

Universities

Research Centers

Foundations

Local authorities

State authorities

Implementing entities

act4Greece


act4Greece: accountability, disclosure and supervision

• each action in the context of the Program shall be

described with full clarity and transparency so that each

participant shall fully understand the relevant

procedures before deciding to participate therein.

• through the platform, each interested party shall be able

to pose relevant questions/requests that will be

answered by a special subcommittee in line with a

specific procedure.

• all activities are monitored and checked before the

commencement of their implementation in order to

ascertain their compliance with the existing regulatory

and legislative framework and are then approved by

the competent body of the Program.

• by the end of each fiscal year, the Management

Committee shall submit a fundraising accountability

report to the competent bodies of the Bank and the

Minister of Labor, Social Insurance and Social Solidarity,

as provided for by law.

• the implementation of projects similar to those launched

by public bodies shall also require the approval of the

Minister of Labor, Social Insurance and Social Solidarity.

• all cooperating bodies adhere to the requirements of

the Program and the special terms of operation of the

Program.

• all related documents and data are kept in a relevant file

for a least five (5) years following termination of the

cooperation and are available to the competent judicial

and supervisory authorities, in the event of fraud or

other suspicious activities.

• all who participate as donors declare that the funds

they offer within the framework of the Program are of

lawful origin and are not the proceeds of illegal

activities as defined by the provisions of Law

2331/1995, as amended.

• required checks shall be carried out and the relevant

information will be requested for the documentation

of the participant’s financial profile, in accordance with

the respective provisions in force.

• EU legislation on payment services (the Payment

Services Directive) shall apply in full.

transparency compliance

accountability supervision of the use of funds

1 2

3 4

act4Greece


act4Greece started with 4 projects

act4Greece


Lunch meals for schoolchildren at the West Attica region

«give €2.5 and offer a meal»

• 134,541 hot meals were offered to

2,808 children

• at 17 schools in the West Attica

region

• total amount collected: €340.175

• NBG contribution : €200.000

• Phase B: to start with the opening of the

new school year 2016-2017

Phase A : 15.02.2016 - 15.06.2016

act4Greece


Medical care at frontier islands of Eastern Aegean

«support vulnerable people»

Phase A 29.01- 31.07 Samos Island:

provision of medical care, humanitarian

aid and psycho-social support to vulnerable groups; mobile medical unit

Total budget: €136,736

Doctors of the World contribution: €.7.000

Phase B: Kos and neighboring islands

act4Greece


Digital educational platform on Greek Revolution of 1821

«be part of history»

Creation of a digital historical archive

on the Greek Revolution of 1821 to

facilitate research and develop

educational tools to support young

scholars

Total budget: €125,000

RCH contribution: €10,000

act4Greece


Modernization of infrastructures in Karolos Koun Art Theatre

• support the Art Theatre, in order to

secure its smooth and effective

operation in the forthcoming years

• modernization of infrastructures and

equipment in both auditoriums with

respect to critical gaps in the technical

framework

«Togetherness is needed»

Total budget/amount collected: €108,176

Onassis Foundation contribution: €54,100

completed

act4Greece


Act4Greece benefits : Transparency & Tax Benefits

completed

donators who requested to be named

donation receipt

Transparency Tax benefits

act4Greece


• Establishment of “crowdfunding” practice

• Dissemination through social networks

• Exploiting synergies across multiple stakeholders (foundations, donors, NGOs etc.)

• Using innovative development finance instruments to tap CSR policies of multiple

stakeholders,eg.

levy on hotel bookings

levy on insurance contracts

company matching employees contributions, etc.

• Accessing diaspora networks (international campaign, etc.)

act4greece: lessons learned

act4Greece


act4greece: Awards won

2016 Silver Bite Award

(Business Information Technology Excellence)

for

“CSR Strategy Support”

Athens 23-06-2016

“Crowdfunding is a FinTech solution. It must be implemented as a banking product

and it needs to fit our digital roadmap”

“The 1st Crowdfunding Conference in Cyprus : Paving new ways to finance” KPMG, Cyprus 16-06-2016

act4Greece



• act4Greece Crowdfunding Platform: why NBG?

• act4Greece: a platform to support society

act4Greece: a platform to support entrepreneurship

part of the program

1

3

2

act4Greece

National Bank of Greece

Part of the NBG Business Seeds program for scale-up

24

business

development implementation

business idea

formation

business plan

development

ideas - prize money angel - pre-seed seed - series A lending - scale up

• > 2.000 Business Plans

• 60 prizes (10 per year)

• 40 Business Plans • 7 companies: equity participation 1,6 mio • 5 companies : lending 2,5 mio • 10 companies : other (mentoring, networking)

act4Greece


NBG Business Seeds: a growing partnership

25

http://www.sev.org.gr/online/index.aspx?lang=gr

act4Greece


… Loans

… Equity

… Other

PD

Plus

NBG Business Seeds: new companies supported by…

act4Greece


27

NBG Business Seeds success story :

€140,000 in pre seed funding by NBG

accepted in Endeavor’s Global Network

€1.2mn in series A funding by a Greek Venture Capital

€1mn in commitments from investors

more than doubled turnover in a year

expansion to Instanbul and Dubai

Blueground was set up in 2013 with a mission to market, manage and develop residential properties, backed by its

technology focus. Blueground converts apartments and houses into fully serviced, first-class guest accommodation.

The company serves two client categories: the owners of the properties and the guests. The owners increase their net

income by 30-50% and save time as Blueground undertakes all the work involved in marketing and managing their

property. The guests, on the other hand, are able to enjoy top class accommodation and guaranteed quality. The guests

staying at the accommodation – whether for leisure or for work – can enjoy the same kind of services they expect from a

hotel, but have the added advantages of more space, privacy, and a fully equipped kitchen – and all at a lower cost.

Blueground has already forged a significant presence in Greece and is currently in the process

of expanding its business in neighboring Turkey and UAE.

act4Greece


A new legal framework on the make

1 transferable equity with a total value of less than €500,000 per company per

annum

2 participation of each private investor cannot be less than €5,000 and more

than 10% of the last 3 years average income

3 Investments are carried out exclusively via electronic system

5 potential system administrators (Commercial Banks or Brokers) notify the

Hellenic Capital markets Committee (HCMC) or the Bank of Greece (BoG) for

their intention to operate platforms

4 exemption of fact sheet publication obligations provided that info exists on

electronic system

Key principles:

act4Greece


NBG investment crowdfunding platform: A fin-tech scale-up

1

Quality co-investors 2

Remarkable track record 3

Bonded partnerships

5

4

Scale up traditional lending and VC approach (diligence, investor’s rights &

protection)

Key Characteristics :

Unique crowdfunding experience in Greece

act4Greece


NBG investment crowdfunding platform targets

significant presence in Greece and export orientation 1

Companies with:

continuous track record of innovation, investing in R&D 2

consistent and steadily growing revenue stream 3

significant employment impact 4

act4Greece


Selection and Valuation process

NBG

customers

Pool of

eligible

customers

• NBG Group Treasury

• NBG Investment Banking

• NBG Credit divisions

(Small Business, SME,

Large Corporate)

private placement 1

2 public placement

NBG may or may

not participate

valuation and credit

underwriting

definition of note

parameters

NBG

non-customers

NBG may or may

not guarantee

act4Greece


A prototype for the future …

Investment facts

country: Greece

collateral: EUR

data room description

The company's main product is SourceLair, a Software as a

Service (SaaS) solution that provides users with the ability to

easily develop code online through a web browser. It comes

equipped with all the tools needed for professional software

development, while simultaneously integrating services such

as GitHub, smoothly, thus enabling programmers to make

use of some of their favourite tools. SourceLair is a software

development company in Athens, dedicated to creating an

enhanced software development experience by removing

hassle from the coding process.

SourceLair first took off as a project in 2011, and the

company was set up in 2013. SourceLair is free for one

coding project, while premium packages are available for

users who want to work on multiple projects.

SourceLair is a global application, since both free and paying

users are from all around the world.

current investment details

current investment details

investments

indicative offers

risk type: software

organization: …

amount: …

NBG participation: …

evaluation

…

rate

…

term

…

amortization

…

rating

…

mature date

…

submission deadline:…

The act4Greece investment platform

www.act4greece.gr

Site: www.act4greece.gr

FB: www.facebook.com/act4Greece

Twitter: twitter.com/act4greece

YouTube: UCz9Pfofme3SvSHVHVBePWqw

Louka T. Katseli, Chair of the BoD - CSR in Greececsringreece.gr/forum/2016/ppt/katseli.pdf ·...

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