Draft:Sandbox

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History

The inspiration for d.light came from Sam Goldman’s stint as a Peace Corps volunteer in the West African country of Benin in 2001-05. There he was bitten by a snake he couldn’t see in the dark, and witnessed the severe burns his neighbor’s son sustained from a kerosene fire.[5] [6] Goldman wrote to several manufacturers of lighting products and asked to be their distributor in Benin but did not receive any responses.[7] He decided to attend business school in order to start a company providing alternatives to kerosene lamps for off-grid households worldwide.[8]

At Stanford University, Goldman met fellow business student Ned Tozun and mechanical engineering students Xianyi Wu and Erica Estrada in the Design for Extreme Affordability class at the Hasso Plattner Institute of Design at Stanford. They developed their initial prototypes using user-centered design principles.[9] The company’s first three products were launched in June 2008.[10]

The founders raised an undisclosed amount of seed funding for d.light in 2006-2007, including the $250,000 first-place prize in the 2007 Draper Fisher Jurvetson Venture Challenge. The company incorporated that same year.[11] d.light announced $5.5 million in Series A funding in November 2008; $5.5 million in Series B funding in June 2010; $11 million in Series C funding in February 2014; and $22.5 million in Series D funding in September 2016.[12] [13] [14] [15] Investors in d.light include Acumen, Energy Access Ventures, Garage Technology Ventures, Gray Ghost Ventures, KawiSafi Ventures Fund, The Mahindra Group, NewQuest Capital Partners, Nexus Venture Partners, and Omidyar Network.[16]

Business Model

Though d.light has a social mission, it is a for-profit corporation with private investors.[17] Their target customer base is comprised of the 1.2 billion people worldwide without access to grid electricity, who are part of the bottom of the pyramid, or the poorest households in the world.[18]

In 2009, co-founder Sam Goldman told the New York Times: “We could have done it as a nonprofit over a hundred years, but if we wanted to do it in five or 10 years, then we believed it needed to be fueled by profit. That’s the way to grow.”[19]

While many have argued that a for-profit business model cannot solve all social problems, others, like the late professor C.K. Prahalad, have advocated for the impact of selling useful, affordable products to customers in the developing world.[20]

Poor households are already paying for energy and lighting. The International Finance Corporation, an arm of the World Bank, found that $10 billion a year is spent on kerosene in sub-Saharan Africa alone. Around the world, people spend up to $36 billion a year on kerosene.[21] Companies like d.light use traditional marketing and sales strategies to encourage customers to invest in alternative energy sources.

There are approximately 100 companies working in the off-grid solar industry today, including M-KOPA, Off-Grid Electric, BBOXX, and Greenlight Planet.[22] [23] [24] [25]

Such companies partner with international organizations and initiatives like Lighting Africa, a program of the World Bank; the Global Off-Grid Lighting Association (GOGLA) of the International Finance Corporation, and the United Nations’ Sustainable Energy for All. These organizations conduct research, set product standards, and promote government policies that facilitate universal energy access.[26] [27]

In March 2016, the World Bank Group’s Lighting Global reported that the off-grid solar market was worth more than $700 million and might reach as much as $3.1 billion by the end of the decade. Globally, 20 million solar products designed for off-grid use have been sold to date.[28]

Recognitions

In 2015, d.light was named a “B Corp Best for the World” business by the nonprofit B Lab, based on its social and environmental impact, performance, accountability, and transparency.[29]

d.light has been a recipient of the Verizon Powerful Answers Award (2014), Bloomberg New Energy Pioneer recognition (2013), Zayed Future Energy Prize (2013), and the Ashden Award for Sustainable Energy (2010).[30] [31] [32] [33] TIME magazine featured d.light as a responsibility pioneer in 2009.[34]

d.light products have received various design recognitions, including a Global LEAP Award (2015-2016), a Core77 Design runner-up award (2016), a Silver Stevie Award for Energy Industry Innovation (2016), and a Spark! award (2015).[35] [36] [37] [38]

A d.light solar lantern was featured as the 100th object, “Solar-powered lamp and charger,” in A History of the World in 100 Objects, a joint project of BBC4 Radio and the British Museum, which was made into a book by the same title.[39]

Co-founders Sam Goldman and Ned Tozun were finalists for BusinessWeek’s America’s Most Promising Social Entrepreneurs in 2009 and were included among Forbes’ inaugural Impact 30 list of the world’s leading social entrepreneurs in 2011.[40] [41] In 2016, Business Insider included Goldman and Tozun in their inaugural list of top 100 business visionaries creating value for the world.[42]

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[1] Stanford D.School Blog, “Two Million People Using D.light,” January 5, 2011, accessed August 29, 2016, http://dschool.stanford.edu/blog/2011/01/05/two-million-people-using-dlight/.

[2] Fannin, Rebecca A. Startup Asia: Top Strategies for Cashing in on Asia’s Innovation Boom (Singapore: Wiley & Sons, 2012), 123-25.

[3] “Social Impact.” http://www.dlight.com/social-impact/. Accessed August 30, 2016.

[4] “About Us.” http://www.dlight.com/about-us/. Accessed August 30, 2016.

[5] “Sam’s Story: How a Snake Bite Turned Into a Bright Idea for a Solar-Powered Startup,” Globesprouting. accessed August 21, 2016, http://www.globesprouting.com/2016/06/sams-story-how-snake-bite-turned-into.html.

[6] Haber, Jason, “How This Entrepreneur Is Turning a Profit in Developing Countries,” Entrepreneur, July 7, 2016, accessed August 5, 2016, https://www.entrepreneur.com/article/274858.

[7] Kielburger, Craig and Marc Kielburger, “Innovation and Social Entrepreneurship Go Hand in Hand,” Huffington Post Blog, April 30, 2015, accessed August 30, 2016, http://www.huffingtonpost.ca/craig-and-marc-kielburger/social-innovation-_b_7182438.html.

[8] Ogg, Erica, “Start-up aims to reinvent the kerosene lamp,” CNET, June 5, 2007, accessed August 12, 2016, http://www.cnet.com/news/start-up-aims-to-reinvent-the-kerosene-lamp/.

[9] Vbeiser, “Save the Poor By Selling Them Stuff—Cheap.” Pacific Standard, April 25, 2011, accessed August 30, 2016, https://psmag.com/save-the-poor-by-selling-them-stuff-cheap-cdf09caf473b#.7p3gu7uem.

[10] Wenzel, Elsa, “d.light rolls out affordable solar LED lamps,” CNET, June 23, 2008, accessed August 30, 2016, http://www.cnet.com/news/d-light-rolls-out-affordable-solar-led-lamps/.

[11] Ibid.

[12] “D.light Design Receives 5.5 Million,” NextBillion, November 6, 2008, accessed August 30, 2016, http://nextbillion.net/news/d-light-design-closes-5-5-million-series-a-round/.

[13] “D.light Design Closes USD5.5 Million Series B Financing,” PR Newswire, June 23, 2010, accessed August 30, 2016, http://www.prnewswire.com/news-releases/dlight-design-closes-usd55-million-series-b-financing-97034819.html.

[14] “d.light Announces $11 Million Series C Financing, Expands Board of Directors,” Market Wired, February 25, 2014, accessed August 30, 2016, http://www.marketwired.com/press-release/dlight-announces-11-million-series-c-financing-expands-board-of-directors-1882313.htm.

[15] Fehrenbacher, Katie, “This Startup Has Brought Off-Grid Solar to 65 Million People,” Fortune, September 21, 2016, accessed October 3, 2016, http://fortune.com/2016/09/21/d-light-funding-solar/?iid=sr-link1.

[16] “Investors,” accessed August 30, 2016, http://www.dlight.com/about-us/solar-energy-investors/.

[17] Alboher, Marci, “A Social Solution, Without Going the Nonprofit Route,” New York Times, March 4, 2009, accessed August 25, 2016, http://www.nytimes.com/2009/03/05/business/smallbusiness/05sbiz.html?_r=0.

[18] Plumer, Brad, “Here’s Why 1.2 Billion People Still Don’t Have Access to Electricity,” Washington Post, May 29, 2013, accessed August 30, 2016, https://www.washingtonpost.com/news/wonk/wp/2013/05/29/heres-why-1-2-billion-people-still-dont-have-access-to-electricity/.

[19] Alboher, “A Social Solution, Without Going the Nonprofit Route.”

[20] Wolman, David,“Want to Help Developing Countries? Sell Them Good Stuff—Cheap,” WIRED, September 27, 2010, accessed August 18, 2016, http://www.wired.com/2010/09/st_essay_pennies.

[21] “Lighting the Way,” Technology Quarterly, The Economist, September 1, 2012, accessed August 18, 2016, http://www.economist.com/node/21560983.

[22] Hirtenstein, Anna, “The future is green: almost 100 million homes may run only on solar by 2020,” Bloomberg/Mail & Guardian Africa, March 3, 2016, accessed September 2, 2016, http://mgafrica.com/article/2016-03-03-almost-100-million-homes-may-run-only-on-solar-by-2020.

[23] Farr, Christina, “Off Grid Electric Gets $7M to ‘light Africa in a decade,’” VentureBeat, March 21, 2014, accessed August 30, 2016, http://venturebeat.com/2014/03/21/off-grid-electric-gets-7m-to-light-africa-in-a-decade-exclusive/.

[24] Hirtenstein, Anna, “Engie, Green Climate Invest in Off-Grid Solar Developer,” Bloomberg Markets, August 30, 2016, accessed September 2, 2016, http://www.bloomberg.com/news/articles/2016-08-30/engie-green-climate-fund-invest-in-off-grid-solar-developer.

[25] Chang, Lulu, “Greenlight Planet Wants to Bring Light to Millions with Its Solar-Powered Solutions,” Digital Trends, June 19, 2016, accessed August 30, 2016, http://www.digitaltrends.com/home/greenlight-planet-solar/.

[26] Berg, Nate, “Lighting Africa Illuminates a New Market.” Fast Company, June 22, 2011, accessed August 17, 2016, http://www.fastcompany.com/1757035/lighting-africa-illuminates-new-market.

[27] Al Bustani, Hareth, “Renewables Light Path to World Without Poverty,” The National, October 26, 2015, accessed August 30, 2016, http://www.thenational.ae/business/alternative-energy/renewables-light-path-to-world-without-poverty.

[28] Hirtenstein, Anna, “The future is green: almost 100 million homes may run only on solar by 2020.”

[29] “120 Businesses Honored as ‘Best for the World,’ Creating Most Overall Positive Social and Environmental Impact,” CSR Wire, April 14, 2015, accessed August 30, 2016, http://www.csrwire.com/press_releases/37847-120-Businesses-Honored-as-Best-for-the-World-Creating-Most-Overall-Positive-Social-and-Environmental-Impact.

[30] Tomaszewski, Adria, “Introducing the Verizon Powerful Answers Award Winners for 2014,” VerizonWireless.com, December 8, 2014, accessed August 30, 2016, http://www.verizonwireless.com/news/article/2014/12/introducing-the-verizon-powerful-answers-award-winners-for-2014.html.

[31] Tweed, Katherine, “Bloomberg Announces 2013 New Energy Pioneers,” Greentech Media, April 23, 2013, accessed August 30, 2016, http://www.greentechmedia.com/articles/read/bloomberg-announced-2013-new-energy-pioneers.

[32] Marika, “2013 Zayed Future Energy Prize Award Winners,” CleanTechnica, January 27, 2013, accessed August 30, 2016, https://cleantechnica.com/2013/01/27/zayed-future-energy-prize-award-winners/.

[33] “Solar lamp wins award for helping developing countries,” BBC News, July 2, 2010, accessed August 30, 2016, http://www.bbc.com/news/10486605.

[34] Cruz, Gilbert, “Community Service 2009,” Time, September 10, 2009, accessed September 21, 2016,http://content.time.com/time/specials/packages/article/0,28804,1921165_1921239_1921221,00.html.

[35] “2015-16 Global LEAP Award Winners Announced at CEM7,” Clean Energy Ministerial, June 1, 2016, accessed August 30, 2016, http://www.cleanenergyministerial.org/News/201516-global-leap-award-winners-announced-at-cem7-68395.

[36] “Consumer Product Award: Core77 Design Awards 2016,” Core77, accessed August 30, 2016, http://designawards.core77.com/2016/Consumer-Product.

[37] “2016 Company of the Year Winners,” The American Business Awards, accessed August 30, 2016, http://stevieawards.com/aba/2016-company-year-award-winners.

[38] “A1 Solar Lantern: Winner – Spark!” Accessed August 30, 2016, http://www.sparkawards.com/galleries/index.cfm?entry=28F042CB-DDFE-4788-ABC2DA503D1C1B52.

[39] McGregor, Neil, A History of the World in 100 Objects (New York: Viking Penguin, 2011), 652

[40] Perman, Stacy, “An Update from one of BW’s America’s Most Promising Social Entrepreneurs Finalists,” Bloomberg, October 15, 2009, accessed August 30, 2016, http://www.bloomberg.com/news/articles/2009-10-14/an-update-from-one-of-bws-americas-most-promising-social-entrepreneur-finalists.

[41] “Impact 30,” Forbes, accessed August 15, 2016, http://www.forbes.com/impact-30/list.html.

[42] Yarborough, Kaitlyn, “Meet the Top 100 Business Visionaries Creating Value for the World,” Business Insider, June 13, 2016, accessed August 4, 2016, http://www.businessinsider.com/bi-100-the-creators-business-visionaries-creating-value-for-the-world-2016-6?op=0#/#-13.

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[1] “About Us,” accessed August 30, 2016, http://www.dlight.com/about-us/. [2] “Solar Products,” accessed August 30, 2016, http://www.dlight.com/solar-lighting-products/.