Incubator launches to teach startups how to make money while doing good
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Up to 40 startups from Melbourne, Sydney and Brisbane with a social and/or environmental mission will partake in social enterprise incubator Two Feet.
The Two Feet program is run by TDi (The Difference Incubator) subsidised by the National Australia Bank (NAB).
TDi co-founder and CEO Bessi Graham said Two Feet was part of a long-term mission to build a critical mass of successful social enterprises across Australia ready to take on investment.
“At present, the social enterprise market is like the tech scene in the nineties – a market in its infancy, but which has enormous potential to change the world while also making money,’’ Graham said.
“We want social enterprise to become mainstream. Once we have a critical mass of enterprises, other startups will see how they can do good and make money, and investors will see how they can do good while diversifying and de-risking their portfolios.”
Eight startups have been selected to participate. A second edition will start in June for a further 10 social enterprises.
A team of TDi experts will work with the startups for six months, after which the two top performers from each program in Melbourne, Sydney and Brisbane will be selected by their peers to present to a panel including TDi, NAB and impact investors in Melbourne. The winning enterprise will have the opportunity to participate in TDi’s Investment Readiness Program.
The program is structured into fortnightly group sessions and a monthly one-on-one coaching session. Topics include strategy, operations, marketing, finance, funding and structuring options, pitching to investors, social outcomes measurement and governance.
Graham said the team do not select charities or ‘napkin ideas’, but social enterprises who are already trading, or entrepreneurs with a track record who have a great idea.
“We want to move social enterprises away from grant reliance and into a business model where they are doing good and making money. We are looking for companies that could stack up as good investment and demonstrate their social impact,” Graham said.
