Impact Investing

Announcing a New Partnership to Support Young Social Entrepreneurs

Posted on by Case Foundation

The Case Foundation has long been a believer that entrepreneurs can change the world, and that young people have a particular set of skills and impact-oriented ambitions to build great social enterprises.

Today, we’re excited to announce our sponsorship of the Forbes $1 Million Change the World Social Entrepreneurs Competition – the largest ever competition for young social entrepreneurs.

Through our participation, we will support the most promising of the for-profit entrants into the competition with disruptive and scalable ideas who can best demonstrate how business can change the world.

Check out Jean Case’s blog announcing the competition—Searching for the Next Big Thing—for more information and to learn how you can get involved. Please share this opportunity with your networks of young changemakers far and wide!

Unleashing Entrepreneurship in Africa: Solutions for the World

Posted on by Case Foundation

At the core of the Foundation’s “Unleashing Entrepreneurship” pillar is the belief that startups—and entrepreneurial approaches—play a key role in tackling some of the world’s biggest challenges. We’ve put that belief into practice by supporting promising initiatives that bring business to the problem-solving table and catalyze strong entrepreneurial ecosystems in the U.S. and abroad.

We’ve seen first-hand the role that a business approach can play in unleashing innovative new ideas and providing scalable models for change all over the world through a number of organizations and initiatives we’ve supported, including: the U.S.-Palestinian Partnership’s investment in entrepreneurs in the West Bank; Water for People’s efforts to leverage community-based entrepreneurs to provide access to clean water and sanitation in the developing world; and Startup America Partnership and UP Global’s development of strong entrepreneurial ecosystems. We’re also focused on building the impact investing movement, which we believe will catalyze a significant wave of new capital to companies that will not just benefit their shareholders, but society as a whole. The Foundation’s most recent exploration has been in launching an Inclusive Entrepreneurship initiative that confronts rising inequality and taps into the fuller entrepreneurial potential of communities and countries (including all backgrounds and locations) to get beyond those who traditionally have easier access to entrepreneurship and lift up women- and minority-owned businesses.

It is for all of these reasons that we are excited to participate in the 2015 Global Entrepreneurship Summit (GES) taking place in Nairobi, Kenya later this week. We are thrilled to join the event as part of Secretary of Commerce Penny Pritzker’s official delegation. Our CEO, Jean Case, will moderate a panel on “Women Entrepreneurs” and will judge the GES “Women + Youth Day” seminal event—a pitch competition with financial and mentorship capital prizes. The Case Foundation is proud to contribute to both aspects of the prize pool. Steve Case, who will be participating in his capacity as a Presidential Ambassador for Global Entrepreneurship (PAGE), is moderating a panel on “Getting Ready for Growth” featuring groundbreaking entrepreneurs and investors, including fellow PAGE member Brian Chesky from Airbnb.

There is plenty of excitement over the fact that this year’s summit in Nairobi is the first GES taking place in sub-Saharan Africa. Over the past few years, we’ve continued to hear about the shift from aid dollars to investment flowing to the continent, expressed by the familiar refrain that “Africa is open for business.” That is why in addition to our time at GES, we are excited to spend time in Nairobi, as well as in Accra, Ghana and Lagos, Nigeria exploring these emerging entrepreneurial ecosystems over the next few weeks.

In each city, we will have the opportunity to visit with some of the organizations we’ve supported in Africa over the years (including Sanergy in Nairobi), spend time at accelerators like the iHub, HubAccra and Co-Creation Hub and participate in panel discussions with leading African entrepreneurs and investors. We expect to learn more about the unique aspects that make each city’s entrepreneurial scene tick—from social entrepreneurs tackling challenges like energy and sanitation in Nairobi, to the fashion-savvy hub of Accra and the e-commerce revolution in Lagos.

Most of all, we are excited about spending time with the entrepreneurs—with special attention given to women entrepreneurs and social enterprises—who are at the heart of driving innovation in each of these cities. In addition to site visits with some of the continent’s fastest growing companies like M-Kopa in Nairobi, Andela and ACE in Lagos and the Cadling Fashion Factory in Accra, we will host a pitch competition in each city. A set of the most promising young startups in each region will vie for an investment prize of at least $25,000 from Jean and Steve Case, matched by local and international investors.

We can’t wait to hear the stories of these entrepreneurs who are working on game changing solutions not just for Africa, but also for the world, and sharing those stories along the way. Be sure to follow along via Twitter @CaseFoundation and #CaseAfrica, as well as via our personal Twitter handles: @AllieB, @SHerrling and @Broksas.

Business as a Force for Social Good

Posted on by Case Foundation

This post was written by J.D. Brady on behalf of the Case Foundation:

At the Case Foundation, we believe impact investing is an excellent example of how business and philanthropy can work hand-in-hand to drive social change. We applaud the work of for-profit enterprises that deliver both a financial and social return, and we encourage investors to support the growth of these companies.

J.P. Morgan’s Nicholas Tedesco is doing just that–creating a bridge between for-profit and non-profit worlds. He joined us at MCON 2015—our annual event that brings together thought leaders from across sectors to explore new ideas regarding engagement with the Millennial generation. As a Senior Philanthropic Advisor in the J.P. Morgan Philanthropy Centre, Nicholas helps clients achieve their philanthropic goals. Before joining J.P. Morgan, Nicholas was with the Bill and Melinda Gates Foundation. In that role, Nicholas helped launch the Giving Pledge, an undertaking that encourages the world’s wealthiest people to dedicate the majority of their wealth to philanthropic endeavors. To date, nearly 200 philanthropists have signed the pledge.

The Case Foundation sat down with Nicholas to discuss the Millennial generation’s approach to investing, where the impact investing sector is headed and what challenges leaders in the philanthropic space.

CF: How do you see Millennials engaging in philanthropy?

NT: It has been widely talked about that we are in the midst of the greatest wealth transfer in history–-the next generation will inherit an estimated $59 trillion over the next 40 years and are positioned to be some of the most influential donors in history. We are seeing some interesting trends among Millennials with respect to their giving. It is starting earlier: wealth is being made at a much earlier age and on a much larger scale than ever before. And people are looking to give back much earlier. They are taking a venture approach–-they are looking to address large-scale social problems with a more hands-on and results-oriented approach. They are also willing to experiment and test new approaches and are more apt to employ nontraditional methods like impact investing.

CF: What is the most interesting thing that you’ve seen in the last year regarding impact investing?

NT: One of the most interesting things I have seen in the last year is the rise in popularity of social impact bonds. Although they are still largely in their infancy, social impact bonds are gaining traction. Utah is spearheading a program that will bring a lot of attention to the “pay for success” model, as are California and Oregon. Although the model will likely never be widely adopted due to its reliance on the government, it is shedding light on the importance of impact metrics.

CF: Is the impact investing movement growing? Do you think we’re at a tipping point?

NT: I absolutely believe that the impact investing movement is growing–-particularly on the west coast. Its core tenants appeal to younger donors who are eager to tackle longstanding social issues with a multipronged approach. We are also seeing an increased awareness among the business community that social and economic returns do not have to be mutually exclusive and decoupled. I do not think we are at a tipping point (yet). We need a few more years to allow more deals to surface, investments to mature, and thought leaders (like Jean and Steve Case) to inform the general public. Impact investing is still a largely unknown and young movement and people are reluctant to be a pioneer.

CF: What are the greatest challenges philanthropic leaders are addressing today?

NT: One of the greatest challenges philanthropy–-as a discipline–-is facing is how to define and measure impact. Americans gave a record $335 billion to charitable causes in 2013, yet it is hard to quantify the impact of those gifts. There are very few philanthropists who are equipped to adequately assess the yield of their grants–-with a large number of donors simply trusting their grantees to execute a successful strategy. However, we are seeing an increased focus on measurement and evaluation from philanthropists at all levels, and as a result, we are seeing donors who are much more engaged with the organizations that they choose to fund.

This is the fourth in a series of blog posts featuring speakers from MCON 2015. Check back to learn about more innovators and leaders from the private, nonprofit and public sectors. Also, be sure to check out the 2015 Millennial Impact Report. 

Impact Investing Gets a Four Billion Dollar Boost

Posted on by Case Foundation

Today, the White House hosted a summit that highlighted more than $4 billion in commitments to finding solutions to climate change. These commitments – from foundations, investors, federal agencies and others – represent the diverse ways that private capital can be mobilized for public good.

Sonal Shah, former Senior Fellow at the Case Foundation and current Executive Director of the Beeck Center for Social Impact + Innovation at Georgetown University, has been engaged with policymakers and investors on how to build smart, high-impact partnerships that bring the talent and resources of the private sector into the business of social change. Read more about today’s announcements from Sonal in her blog.

The commitments announced today represent the increased interest from investors to bet on the ingenuity of the private sector to find sustainable solutions that address climate change. They also represent the commitment from the federal government to spur innovation in the sector and convene a wide range of stakeholders who have committed to allocate capital to build the clean tech ecosystem.

The announcements today follow $2 billion in commitments announced by the private sector in June of 2014 to make investments in companies, funds and programs that aim to generate both financial and social returns. Those announcements were accompanied by the release of a report – Private Capital, Public Good: How Smart Federal Policy Can Galvanize Impact Investing – which provided a framework for policymakers in support of impact investing.

The announcements follow other recent news of the private sector thinking big about impact investing. In February, BlackRock—the world’s largest money manager—announced the launch of a new business unit, BlackRock Impact, to be led by former Robin Hood Foundation President and COO Deborah Winshel. In April, Bain Capital announced that former Massachusetts Governor Deval Patrick would lead its new impact fund.

The last year has also seen the creation of impact funds by global corporations like Mars and Danone, as well as new investments in responsible companies and funds by respected entrepreneurs like Bill Gates, Reid Hoffman and Marc Andreessen. The number of certified B Corps has grown to over 1,300, and certified B Corp Etsy announced an IPO in April. Finally, the public markets for responsible investments are also growing—US SIF’s biannual report released in late 2014 found that SRI investing in the United States had increased 76 percent since 2012.

Jean Case said in April that it’s a new inning for impact investing. The $4 billion in commitments announced today strengthen the all-star lineup of investors, companies, and government agencies that are mobilizing the power of the private sector to address some of our most critical challenges.

Impact Investing Conversations Expand at Milken Institute Global Conference

Posted on by Case Foundation

This year, Case Foundation CEO, Jean Case, and team again traveled to the Milken Institute Global Conference to lead conversations about how business can contribute to solving social problems. The Milken Institute has the mission to increase global prosperity by advancing collaborative solutions that widen access to capital, create jobs and improve health, and impact investing is increasingly seen as one of those collaborative solutions that will bring new capital and talent to the social sector.

For some background on the good news from the last year in impact investing, check out Jean Case’s blog that ran the first day of the conference: “A New Inning for Impact Investing.” And take a look at Jean’s ongoing series on Medium—”5 Characteristics of Thriving Social Entrepreneurs” for even more detail on best practices for starting and growing a business that turns a profit and changes the world.

At the Global Conference, the Case Foundation and our partners–Omidyar Network and the Milken Institute–hosted a roundtable of investors and funds to talk about the great progress from the past year—including announcements of new impact practices at Bain and BlackRock, and $2 billion worth of new commitments to impact investing from investors like Prudential, McKnight Foundation, Ford Foundation and others. The group at the roundtable also discussed ongoing challenges in the field—including the need for better measurement of social impact, need for more deal flow and the need for more education for investors and advisors on risks and opportunities.

Jean also moderated a panel—Impact Investing 2.0: Finding Value in Doing Good, which focused on the range of products, asset classes and returns expectations that are available to new impact investors. She kicked off the panel by saying, “We see a new class of entrepreneurs who don’t just want to build companies for profit, they want to address a social challenge. And there’s a new class of investors across sectors that want more than just a financial return from their investments.”

It was a lively discussion featuring Kimbal Musk, founder of The Kitchen and member of Tesla’s board; Thomas Hyland from Aspada Investment Advisors; Jacqueline Novogratz from Acumen; Dimple Sahni from Anthos Asset Management and Gary White from Water.org. You can find the full video of the panel here.

Jean also joined Forbes Editor, Randall Lane, at a dinner to talk about how philanthropists can think about the opportunities that are available to them, from grants to support organizations like B Lab that are building a stronger ecosystem to high-return, for-profit investments in social enterprises and funds.

We hope you will join us as we continue the conversation with partners like the Milken Institute and others over the course of this year. As Jean said during the events at Milken, “Too often we haven’t invited businesses, and specifically entrepreneurs, to the table in solving social problems.” Impact investing presents a path forward to bring the power and talent of the market and the private sector into the business of solving some of our most pressing social challenges.

For more, watch Jean Case’s discussion with TheStreet’s Rhonda Schaffler about the growth in impact investing and why a whole new generation of tech entrepreneurs are making more investments in the space. 

Better Businesses Make Better Mothers’ Day Gifts

Posted on by Case Foundation

Here at the Case Foundation, we believe that where we shop matters, and we’re convinced that better businesses make better gifts. In an effort to help you wrap up your Mother’s Day shopping, we put together a collection of gift ideas from some of our favorite “better” businesses—companies driven to have positive social and environmental impact.

These gift ideas, curated with the help of our partners at B Lab, will fit nicely on your shopping list, while you support conscious businesses that create meaningful jobs, protect the environment and create a better world.

Happy Mother’s Day to all moms, grandmas, moms-to-be and caregivers!

Greyston Bakery – Greyston Bakery has open hiring practices to provide employment and professional development opportunities to everyone in the community.
Mom will get the satisfaction of aiding in its efforts, as well as enjoying some of their delicious baked goods.

The Honest Company – This B Corp believes that Mother’s Day is all about spoiling mom. Treat her to something indulgent from Honest Company’s pampering collection so she can enjoy a spa-like escape at home.

Dogeared – This California-based jewelry company lives by the philosophy that “what goes around comes around.” It puts this belief into practice by handcrafting pieces locally, respecting the planet and partnering with nonprofit organizations that share its vision for a better world.

A to Z Wineworks – Your wine-loving mother is sure to jump with joy when she receives a bottle from A to Z Wineworks. Its award-winning Pinot Noir and Pinot Gris are excellent not only in taste but also in their fair value and sustainability practices.

Prosperity Candle – Give Mom a hand-poured candle that smells good and does good! Each gift provides living wages to women artisans who are thriving as entrepreneurs.

Better World Books – The gift of a good book is something that never goes out of style. Give mom a novel from Better World Books, and someone in need will receive one as well.

Etsy – Are you still stumped about what to get Mom? Shop this community-based site that believes in making the world more fair, more sustainable and more fun. There are more than 1 million active shops – making it easy to find the perfect gift!

Have an idea of your own? Please share it with us on Twitter by tweeting at @CaseFoundation with the hashtag #CFBlog!

Will David Chen of Equilibrium Capital Pioneer “The Next Stage” of Impact Investing?

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The challenge of climate change is not new in the U.S., and recent political dialogue on the subject suggests a renewed urgency to address it.

This week, the focus of our spotlight on social enterprise with Entrepreneur.com, in partnership with ImpactAlpha, is on a West Coast company, Equilibrium Capital. Led by former venture capitalist and tech executive David Chen, this asset management firm is putting big dollars into play to demonstrate that sustainable resource management is essential for long-term, high-return investing.

Equilibrium Capital was formed in 2007 in response to new trends that Chen recognized as keys to reshaping major commodity sectors: rising middle class consumption and a new focus on water use. He started Equilibrium to capitalize on shifting values and new market opportunities born out of increasingly constrained natural resources and increasing demand for those same resources.

Chen founded the firm to be a sustainability-driven asset manager for institutional investors that delivers both a reliable financial return and intentional positive impact on communities and the environment. To do this, Equilibrium is providing innovative investment products, operating a portfolio of real assets, promoting transparency in the portfolio and scaling capital from diverse investors. Its portfolio currently includes opportunities in renewable energy, sustainable agriculture, green real estate and water management.

Equilibrium’s work is not going unnoticed. Despite the focus on sustainability, its investors aren’t just “do-gooders” who are willing to trade profit for social gains. Equilibrium’s investors expect a market rate of return. The firm has even attracted some of the most risk-averse investors in the world—pension fund managers—who, by the way, control trillions of dollars.

So, is impact investing a tool to create the positive environmental outcomes needed to address climate change? Time will tell, but returns so far seem to show that Equilibrium’s real assets are lower-risk than might be expected. To read more about how Equilibrium is creating positive impact and hoping to pioneer the next stage of large-scale, high-return impact investing, visit Entrepreneur.com for the full story.

Sari Miller: An Angel Investor Proving the “Goodness Factor” is Good for Impact and Returns

Posted on by Case Foundation

As an early impact investor, Sari Miller’s strategies, experience and perspectives on angel investments offer others in the market a wealth of insight and guidance on investing with purpose in new markets. For this reason, Miller is the focus of our weekly series on social entrepreneurship with Entrepreneur.com, in partnership with ImpactAlpha.

Sari Miller, CEO of Sarjay, Inc., is ushering through some of the biggest impact investment deals currently in the market. Miller is translating the hands-on style that earned her great success during her previous career in real estate, to her approach as an early stage impact investor. She is working to drive enterprises and funds to scale in the widely untapped social benefit markets and low-income services industries. Her business acumen and commitment to the groups she funds and their social impact have helped pave the way for some early successes. Her most notable successes came from angel investments in Leapfrog Investments and Grassroots Business Fund (both organizations were profiled previously on the Entrepreneur.com Impact Investing Topic Hub).

Miller’s impact investments are not limited to a single geography, socio-economic climate or social issue. They cover a range of countries and encompass a multitude of services and sectors, including employment opportunities and job training, education, civil rights advocacy, agriculture and artisanal business development and micro-insurance. As with any pioneering investments, not all of her experiments have realized the kind of market scale and impact that Miller is seeking. She was a founding angel backer of Nexii, the first ever publicly regulated impact investing stock exchange based in South Africa. Unlike her other projects, this was not able to gain the traction it needed, and was later merged with a Singapore-based, social enterprise transaction platform, Asia IIX.

Despite this setback, Miller continues to make strides in the market. Most recently she helped Gigawatt Global’s management team get a $24 million solar field, containing more than 28,000 solar panels set in the shape of the African continent, up and running in record time. Miller supported this effort not only for the potential financial returns an under-tapped market like alternative energy can yield, but also for what she calls “the goodness factor.” As part of her due diligence, prior to investing any time or dollars, Miller confirms that the companies and founders are passionate about social impact, stating that the goodness factor is critical and without it, founders can stray from their mission.

Gigawatt Global’s solar project is going beyond clean energy benefits. To install the solar panels, Gigawatt Global is leasing land from Agahozo-Shalom Youth Village (ASYV), a residential community in Rwanda for individuals who were orphaned during the Rwandan Genocide. Lease payments from this solar project will support the ASYV school while the local residents are also trained in solar technology. Gigawatt’s focus on sustainable, local impact provides the good factor that has resonated with Miller and other similarly driven investors.

For more on Africa’s solar energy project and the range of social impact investments on which Sari Miller is making big bets, read the full story at Entrepreneur.com.

Village Capital: Getting Startup Funding to Nontraditional Entrepreneurs

Posted on by Case Foundation

As part of our ongoing series on social entrepreneurship with Entrepreneur.com, in partnership with ImpactAlpha, this week’s spotlight is on Village Capital. This startup accelerator is banking on the idea that the best solutions to community problems come from local entrepreneurs who have firsthand knowledge of the challenges being addressed.

Village Capital is specifically focused on the difficulties facing the “unbanked” and “underbanked,” which are terms used to define an individual or household that has a bank account but also uses alternative financial services (AFS). Examples of AFS include: payday loans, rent-to-own agreements, money orders, car title loans, etc. While some AFS have been developed to help those who are underserved by traditional lending services, many are characterized by short-term repayment schedules and generally have very high interest rates. These qualities make them less than ideal lending options for entrepreneurs who are considered too risky for traditional bank loans and credit, thus leaving them with few opportunities when seeking startup capital.

To tackle this lending challenge, Village Capital is recruiting minority and women entrepreneurs from unbanked and underbanked communities. They are then exposing these entrepreneurs’ marketable ideas to venture capital funding—to which these nontraditional entrepreneurs would otherwise have limited access This allows for the development of businesses that are potentially both lucrative and effective at changing the dynamics around opportunities for people who struggle to access necessary financial services.

While many categorize these programs as impact investments, Ross Baird, executive director of Village Capital, explains that his organization’s investors do not usually self-identify as impact investors. A number of those whom they invest with believe that impact investments require conceding some financial returns for social impact—and that is not the case here. Despite the obvious positive social outcomes Village Capital’s entrepreneurs deliver, its investors first, recognize the fundamental value of exciting, smart investments with the potential for consistent and/or impressive returns. Through events like the FinTech Forum, Village Capital continues to introduce investors to opportunities that generate greater outcomes with their dollars. At these forums the stage is given to nontraditional entrepreneurs, like Brian Ferguson of Start Line, who translated a wrongful imprisonment that could have destroyed his professional future, into a powerful startup that has the potential to counter recidivism issues.

For more on Village Capital and the entrepreneurial solutions to the financial and community challenges it promotes visit the Entrepreneur.com impact investing hub.

Measure What Matters: Announcing a New Partnership Between the Case Foundation and B Lab

Posted on by Case Foundation

This post was written by Andrew Kassoy, Co-founder of B Lab, and Kate Ahern on behalf of the Case Foundation:

The Case Foundation and B Lab are pleased to announce a new partnership called ‘Measure What Matters’ that will leverage the power of the B Corp community to help all companies use business as a force for good.

In February, the Case Foundation, B Lab, and a number of leading social entrepreneurs and impact investors participated in an event to talk about the need for business to join government, nonprofits, and philanthropy in solving social problems. We were fortunate to be joined by leaders from two certified B Corps—Warby Parker’s Neil Blumenthal and Happy Family’s Shazi Visram.

Warby Parker—which sells affordable, stylish prescription eyewear and incorporates a Buy One, Give One model—and Happy Family, which makes affordable organic baby food and other products, are two examples of the incredible power of business to do well by doing good. They are frontrunners in this growing movement because they are proving that they can solve problems and turn a profit.

B Lab, which certifies socially and environmentally responsible companies like Warby Parker and Happy Family, and others like Ben & Jerry’s, Patagonia, and Etsy (which just filed for an IPO) has built some of the critical building blocks of the social enterprise ecosystem. Measure What Matters builds on the momentum from the B Corp Certification program and marks a second phase of the B Corp movement’s aim to help all companies use business as a force for good.

How will this partnership help all companies to Measure What Matters?

We are thrilled that the community of Certified B Corps has grown to 1,200 leading companies globally. Remarkably, there are 20,000 more companies that have engaged with the B Impact Assessment to start to benchmark and improve their social and environmental performance.

B Lab’s newest initiative, Measure What Matters, builds on that momentum. It will provide easy-to-use online tools including the B Impact Assessment and B Analytics that any company can use to assess, compare and improve their impact. This initiative will adapt these tools so that they can be used by millions of companies around the world.

Earlier this month, these tools made it possible for the City of New York and the B Corp community to launch a new campaign called Best for NYC, which will inspire, equip and celebrate all NYC companies to improve social and environmental performance. Measure What Matters will be the entry point and first step for thousands of new companies in New York, across America, and worldwide to learn about how to evaluate their business practices, to compare against benchmarks, and to improve their performance.

The Case Foundation has long partnered with organizations like B Lab that disrupt industries and make markets for social good, and we are happy be able to continue that tradition with our support of B Lab’s newest effort.

We know that only a small percentage of the companies that use B Lab’s tools will likely become certified B Corps, but we also know that all companies—large and small, public and private—can benefit from measuring what matters to them and what matters to their shareholders and customers in improving social impact and sustainability. In a generation’s time, this work will help establish a culture in business where all companies measure and manage impact with the same rigor as they do profits.

Read more about B Lab here, and learn more about the B Impact Assessment. Read more about the Case Foundation’s impact investing work here.

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