Investment Proposal - FINAL version

  TO: Clark Hansen, CEO of Anima Mundi Development Partners

FROM: Emily Sures, Development and Research 

DATE: June 30, 2021

SUBJECT: Zipline - Investment proposal 

AMDP is looking to invest in a company that is environmentally sustainable and socially responsible. With extensive research, I have determined that ZipLine is an excellent investment opportunity. 

AMDP Standards 

Triple Bottom Line 

• People - Companies are responsible for both their shareholders and stakeholders. Successful companies prioritize both customer and employee satisfaction. 

• Planet - AMDP is looking to invest in companies that are environmentally conscious. A successful company works to minimize its environmental impact by producing sustainable and eco-friendly products. 

• Profit - Companies must have a strong financial foundation in order to carry out their social and environmental missions. 

Corporate Social Responsibility 

Companies have a responsibility to care for their customers, employees, and in broader terms, for our planet. To carry out this mission, companies must actively work to support the greater good. 

Social Enterprise 

A social enterprise aims to maximize social and environmental benefits while simultaneously generating a profit. A social enterprise carefully balances the good of the people, the good of the environment, and the financials of the company. 

Carbon Footprint 

Carbon footprint refers to the greenhouse gas emissions released by certain technologies. Greenhouse gas emissions have contributed to a host of global problems like climate change. Our world has modernized at the cost of our planet. Companies need to be more environmentally conscious going forward. 

Zipline Analysis 

About the company

Keller Rinaudo, a robotics entrepreneur from Arizona, founded Zipline in 2014. Zipline is a social enterprise which uses drones and other aerial technologies to deliver important medical equipment (like blood, vaccines, and first-aid supplies) to the most remote parts of Africa and the United States. The company aims to compensate for the lack of infrastructure in these areas by transporting medical supplies to doctors and their patients. Here is how it works:

1. The user places a phone order (text or call) to Zipline through a supply center. 
2. Zipline receives the order and sends the package to Zipline flight operations. Once the order is processed, the user can track their shipment. 
3. Using GPS technology, a Zipline drone delivers the shipment to the users direct location.  
4. The aircraft returns to its base to recharge and prepare upcoming shipments. 

Planet

Zipline offers a sustainable solution to the transport of medical goods and appliances. Automobile and airplane transportation account for almost one third of U.S. greenhouse gas emissions. A recent study found that a single-pound package delivered by a lightweight drone would cut carbon emissions by 54 percent compared to a diesel truck (Masunaga, 2019). Depending on the size of the drone and the weight of the package, this technology offers a chance to reduce our carbon footprint. 

People

Globally, more than two billion people lack access to medical facilities and services (Shaughnessy, 2017). Zipline is determined to help isolated people in the developing world by standardizing access to medical supplies. The company relies on drones and unmanned aerial vehicles to launch packages of medical equipment with a parachute attached. This service is fully autonomous relying on a built-in GPS system.  After the items are delivered, the plane returns to its base. Zipline is able to deliver emergency medical supplies on-demand at an affordable price. The company's entire mission is centered around social impact and responding to the demand for urgent medical equipment. 

Profit 

Zipline has bettered the lives of people all around the world but it also has monetary value attached to it. The company has gained attention from both developing governments and some of the leading venture capital firms of Silicon Valley. The company has already raised more than $40 million in venture capitalists investments (Shaughnessy, 2017). Among the list of Zipline investors are some impressive names including Goldman Sachs, Stanford University, Toyota Tsusho Corporation, and Sequoia Capital (Grahame-Clark, 2020). Although its services are fully autonomous, Zipline is driven by technological innovation and employs an array of engineers, roboticists, and public health professionals. The company operates on a for-profit business model. 

Expert Perspectives 

In 2019, Zipline was recognized by the London Business School in the Real Innovation Awards Ceremony. Will Grahame-Clark, a business writer featured on the London Business School website wrote an extensive article on Zipline. In his article, Grahame-Clark describes the public's reaction to Zipline at the Real Innovation Awards Ceremony. Grahame-Clark quoted Julian Birkinshaw, a professor of Strategy and Entrepreneurship who said, "What Zipline has done is remarkable. They are redefining what entrepreneurship is all about. They are at the cutting edge of drone development at the moment the technology matures."

Recommendation

Due to its impressive list of investors, life-changing services, and its honorable mission, I strongly believe that AMDP should invest in Zipline. Millions of people around the world lack access to healthcare and medical services. Particularly during the COVID-19 pandemic, the demand for medical equipment/services has skyrocketed. Zipline is emerging at a very relevant time and I think now, more than ever, there is enormous value in this idea.

WORK CITED

Fernando, Jason. “Corporate Social Responsibility (CSR).” Investopedia, Investopedia, 6 July 

2021, www.investopedia.com/terms/c/corp-social-responsibility.asp.

Grahame-Clark, Will. “How Zipline Is at the Vanguard of Change on the Continent.” London 

Business School, 10 Feb. 2020, 

www.london.edu/think/iie-saving-lives-one-drone-at-a-time.

Kraaijenbrink, Jeroen. “What The 3Ps Of The Triple Bottom Line Really Mean.” Forbes, 

Forbes Magazine, 10 Dec. 2019,  www.forbes.com/sites/jeroenkraaijenbrink/2019/12/10/what-the-3ps-of-the-triple-bottom-line-really-mean/?sh=46b146fe5143.

Masunaga, Samantha. “Could Drone Deliveries Help the Environment? Let's Unpack That.” 

Los Angeles Times, Los Angeles Times, 17 Nov. 2019, 

www.latimes.com/business/story/2019-11-17/drone-deliveries-environment-trucks.

Shaughnessy, Dennis. “Zipline: Lifesaving Deliveries by Drone.” Social Enterprise Institute 

at Northeastern University, Leah Bury , 16 Nov. 2017, www.northeastern.edu/sei/2017/11/zipline-lifesaving-deliveries-by-drone/.

Unknown. “How Zipline Raised $190 Million to Build a Global Drone Logistics Network, 

Starting in Rwanda and Ghana.” ImpactAlpha, 18 Oct. 2020, 

impactalpha.com/how-zipline-raised-190-million-to-build-a-global-drone-logistics-network-starting-in-rwanda-and-ghana/.