To:
Clark Hansen, CEO,
AMDP
From:
Timothy H Kim AMDP Strategic Investments
Date:
March 1, 2016
Subject:
Investment Opportunity—Iolite Inc.
Hello Mr. Hansen,
I have gathered another list of
investments and funding opportunities that may interest AMDP and help better
our portfolio. After extensive research throughout the week I highly recommend BioLite
Inc., a social enterprise that provides clean energy to those that do not have
access to energy and for a cleaner world. Importantly not only does BioLite
provide energy to those that are less fortunate, they develop breakthrough
technology that is delivered through a market approach. BioLite is a great
investment due to their alignment with AMDP’s guidelines. I will further
explain why we should fund an enterprise that is benefiting not just
individuals but the world as a whole.
AMDP GUIDELINES:
Triple
Bottom Line: An accounting framework that looks
beyond just the “financial” bottom line of a company, and instead incorporates different
performance measurements known as the “three p’s”.
- · People: The “social” responsibility the company has to maintain ethical and beneficial business practices its employees, shareholders, consumers, and the community in which their business is conducted.
- · Planet: The “environmental” responsibility the company has to the planet. Is the company environmentally aware of what the company or product is doing to help/harm the planet? Is the company taking any actions to become more ecologically friendly?
- · Profits: The “economic” responsibility of the company to create economic value (profits/loss) for its economic environment.
Corporate
Social Responsibility: Also referred to as CSR,
corporate social responsibility is the idea that companies should focus on
their “social” responsibilities that their business may or may not create.
Rather than concentrating just on returns and financial responsibilities to shareholders,
companies should focus on the social impact and positive relationships they can
create in the societies that they operate in. The ultimate goal is to
positively impact society while improving the company’s management.
Social
Enterprise: An organization or entity that uses
commercial and business strategies to maximize and help improve the human and
environmental well being. These entities are usually revenue generating
businesses that seeks to maximize social, cultural, economic, and environmental
improvements while maintaining profitability. Social Enterprises can be
operated by a non-profit or for-profit companies.
Carbon
Footprint: The measurement of greenhouse gas
emissions that is produced by an individual or entity for its operations or manufacturing
a product. Usually this is measured in tons of carbon dioxide (CO2). This can
also be the amount of electricity consumed for daily operations.
The History of the Future
BioLite Inc., a startup that is based
in New York City, develops and manufactures advanced off-grid energy products
for the outdoor recreational industry as well as for emerging markets. BioLite
started when Jonathan Cedar and Alexander Drummond bonded over their interests
in “sustainable design” in 2006. During this time Alec was frustrated that all
efficient camping stoves required petroleum fuel or batteries. He had the idea
of a wood-burning stove that would be able to utilize its own thermal energy.
Jonathan, who was an avid camper, quickly brought his engineering background to
the table and the two began BioLite (BioLite). When we fast forward to today we
can see that the company has grown to 38 full time members with 50 years of
product development experience, holding more than 30 utility patents, and carrying
more than 20 products on the market (which can be viewed here).
Responsible Problem Solvers
Currently BioLite focus on technologies
in 3 problematic areas for parts of the emerging and off-grid world and claims
to have a solution.
- Cooking Fires: Currently there are approximately 3 billion people who cook on smokey open wood fires. Out of those 3 billion people 4 million people die annually from these fires (more than aids, TB, and malaria combined). Also cooking fires emit more smoke into the atmosphere than all the cars and trucks in the world combined.
- Solution: “BioLite HomeStove and combustions technology burns wood as cleanly as gas while reducing particulate matter and carbon emissions by up to 90 while cutting CO2e emissions by 2.5 tons a year”. Currently BioLite has avoided 29,384 tonnes of Co2 emissions and has 46,755 people breathing cleaner and healthier. (BioLite)
- Access to Electricity: Currently there are approximately 2.3 billion people across the world that have unreliable or no access to electricity. Amongst them, 550 million mobile phone users live off-grid and have to often travel long distances and pay high fees for charging.
- Solution: “The BioLite Stove products are able to convert heat from the fire into usable electricity giving owners an instant power outlet”. These products have generated up to 25,628,548 watts of electricity today (BioLite).
- Expensive and Inefficient Lighting: Off-grid households spend over $38 billion annually on dirty expensive lighting such as kerosene. The basic kerosene lamps provide less than .10% illumination for studying and living accommodations.
- Solution: “The BioLite NanoGrid offers multi-room lighting in a single hub and can be recharged. The led light also emits more than 2000% more lumens than a kerosene lamp” (BioLite).
All of these solutions fall in line
with AMDP’s mantra of companies helping, improving, and providing for the
human, social, and environmental well being. BioLite believes that Energy
improves health, combats climate change, enables communications and education, and
generates income.
The
Untapped Markets
Through ethically sourced supply chains
and built distribution networks, BioLite is able to leverage manufacturers to
produce high-quality products at an affordable price while reaching households
that traditional retail models cannot (BioLite). Fast Company and Design
awarded BioLite “Design of the Year” and stated, “The stove which provides
significant fuel savings in developing nations also benefit by providing a
safer way to burn fire and creating a gathering place for families” (Wilson). Not
only is the company and its products following a triple bottom line by helping
people breathe healthy, avoiding carbon footprints, and tapping new markets,
they are upholding a high standard of social corporate responsibility. They are
committed that by bringing their products to those who are less fortunate, they
are able to promote higher quality of life, education, and communication
between populaces. Furthermore, BioLite reinvests a portion of all their sales
revenue to further develop their products and bring energy everywhere.
What’s The Buzz?
Other
than all of the numbers and statistics about providing clean energy that can be
found online and on BioLite’s website, what is everyone else saying about this startup
company? An executive editor from Bloomberg wrote, “When I was first introduced to BioLite’s
technology a little more than a year ago at an outdoor goods showcase in lower
Manhattan, I was equally enchanted and dismissive… Boy, did I miss the bigger
picture” (Wieners). The National Geographic named it 1 of the must have gears
of 2012 for camping and traveling (National Geographic). BioLite has also been
awarded several design and innovation awards for their products. These awards include,
the Public Interest Design Global 100, 2013 Core 77 Social Impact Design Award,
2012 Tech Awards Nokia Health Prize, and many more (World Design Impact). Financially,
BioLite has raised over a $1,000,000 on Kickstarter, surpassing its original goal
of $45,000, and has received several Series A and B financing from various
investors (BioLite). As you can see many
people will agree that not only are BioLite’s products modern and beautifully
designed, but they are also contributing to the environmental, social, and
economic issues around the world.
Final Recommendation
It should
be clear now that BioLite Inc. is a perfect and sound investment. Not only are
they targeting to an industry of outdoor recreation and emerging markets, but
they are working ways to find sustainability and improvements in a social,
economic, and environmental aspect. BioLite
is a strongly recommended investment for falling in line with AMDP’s
investment beliefs and guidelines. We will be investing in a company for their
mission to bring energy everywhere by empowering people to empower themselves.
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history
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mission
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award
Bloomberg analyst
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national geographic
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list of awards
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