When Purpose Demands More Than Profit

Duration：2016~

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Rationale

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We first came to know Simple Mart Milk in late 2014, after they launched a crowdfunding campaign.
Supporters quickly spread across Taiwan.
That meant one thing: fresh milk would have to be delivered—through a full cold-chain system—to every consumer’s home.
To be honest, we initially opposed the idea.
Not because we disagreed with the vision,
but because the risks were extremely high.
How could quality be guaranteed for fresh milk without outer packaging, transported entirely under cold-chain conditions?
If the last mile of logistics failed, all the effort invested before it could collapse instantly.
This situation reflects a common challenge for many innovative startups:
they focus on ideals and products, yet underestimate the complexity of getting the product safely into consumers’ hands.
In early 2016, Simple Mart Milk approached us again, hoping we would participate in a capital increase.
The reason was straightforward.
They urgently needed funding to finalize a contract with a dairy farm.
Simple Mart Milk operates as a light-asset company.
To obtain a bank loan, they first needed a credit guarantee.
The process had already begun—but the bank loan would not be released for at least six months.
The farm, however, could not wait.
And the funds were needed immediately.
Raising capital purely for short-term cash flow is rarely ideal.
But at that moment, time was simply not on their side.

Initiatives

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Before that point, we had no investment or business relationship with Simple Mart Milk.
What we did share were many conversations about what it means to be a social enterprise.
Simple Mart Milk consistently emphasized that veterinarian oversight was at the heart of its brand value.
But this raised a practical issue.
Taiwan faces a serious shortage of large-animal veterinarians.
If the brand genuinely aimed to improve the dairy industry, then training large-animal veterinarians should itself be considered part of its social responsibility.
To be honest, this is the difficult reality of many social enterprises.
Before they even become profitable, they must already carry the weight of their social mission.
When Simple Mart Milk approached us again for short-term financial support, we evaluated the situation carefully.
The bank loan was essentially secured—only administrative procedures remained—and repayment could be completed within the same fiscal year.
So we made a decision.
The foundation provided an interest-free bridge loan to help them get through that period.
This was not an investment, and we did not expect any financial return.
We simply chose to absorb the risk created by time.
We even said quite frankly:
“If the innovation moves faster than regulations and leads to fines—as long as it isn’t illegal—consider it part of the cost.”

 

Impact

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Simple Mart Milk later repaid the bridge loan as scheduled.
The only risk we carried was the time gap created by administrative procedures.
Today, Simple Mart Milk has grown into a company with annual revenue exceeding NT$500 million.
We are still not shareholders—but we remain partners in social purpose.
Along the way, the foundation’s emergency support policy raised questions from regulatory authorities.
Since nothing was illegal and the outcome was positive, we chose open communication, and the matter was resolved.
Many social enterprises appear inspiring in public discourse.
Yet once they enter the market, they are still companies—and the word “social” often becomes a point of hesitation for investors.
After more than six years of growth, what makes Simple Mart Milk truly commendable is not only its financial performance.
In 2020, it officially became a Certified B Corporation.
That recognition means it is not only a company that generates profit.
It is also an organization that has been formally assessed and verified as willing to take responsibility for society.