18 months since I first posted on this blog, this week’s announcement of Wayra UnLtd is a huge practical example of what I’ve been banging on about. I’m also delighted to say its something I’ve been personally involved in, alongside some great people at Telefonica. It feels like the culmination of a long journey. And the start of a new one….
So what is it? Wayra UnLtd will be an innovative and ground-breaking new partnership between UnLtd, the world’s largest supporter of Social Entrepreneurs, and Wayra, Telefonica’s global tech start-up incubator programme. In short, it will be an incubator for tech start-ups that have been set up to tackle social need.
In practical terms, we will support 3 cohorts of 10 digitally-focused, start-up social ventures over two years in a purpose-built Wayra UnLtd Academy. Wayra UnLtd will provide seed-funding (a £40,000 convertible note); world class coaching and mentoring; incredible work-space; a global network of Academies and the amazing talent accommodated within them; fast-track access to influential decision makers in the public, private and third sectors and second round investors; and the potential to unlock the power of 300million Telefónica customers globally.
In addition to Telefonica’s unique technology expertise and industry networks, UnLtd are bringing gest-in-class systems and processes for scouting, assessing, supporting, monitoring and showcasing the social impact of high potential social ventures.
After 8 months incubation, we will help the ventures pitch for follow-on funding – from public funds and our existing networks of Business Angels and social investors.
I’m sure you agree… it sounds unbelievaly brilliant for the social ventures.
But why on earth are Telefonica doing this?
The cash contribution is coming from Telefonica’s global CSR team, because they buy into the huge amount of social good that the incubatees will be delivering. It aligns with their global social responsibility objectives around health, education, the environment and social innovation.
But Telefonica are also doing this because its good business sense. Each of the social ventures will be selected because they align with Telefonica’s overall business strategy. They have a view that these are products and services they can integrate into their own value chain – delivering better value to their customers – both B2B and B2C.
Because the money going into the investees is investment rather than grants, this is also a sustainable intervention. We hope that in some instances, the original £40,000 stake will translate into a £400,000 stake (or a £4million stake!) upon exit – all of which will be recycled into supporting further social enterprise activity in the UK and globally. And unquestionably, Telefonica’s involvement will increase the probability of this growth happening – their help in making introductions to customers, to investors, to strategic advisors and partners adds real longterm value to these companies. Telefonica have a hugely powerful brand and a set of networks in the tech sector that are second-to-none. If the model works, then Telefonica’s CSR budget will become recycled again and again. And all the while they will be exposed to exciting new innovations, R&D, supply chain partners and acquisition targets.
It is the absolute definition of Shared Value.
What’s more, this is a model that can replicated again and again and again: In technology, retail, FMCG, hospitality, construction, finance, travel…
The message to corporates interested in creating shared value is simple: find a cohort of start-up social ventures that work in your industry and fit your broad strategic company goals and CSR focus. Invite them into your offices for 6-8 months and share all of your knowledge and networks with them. And reap the benefits…
Shared Value Supply Chains 
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