Good Capital
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Transcript of Good Capital
The new moral hunger
And the Blended Value Market
© 2007 all rights reserved
The hallway
Investment office
Foundation house, and investment tower
The story of one couple, in two rooms and a hallway that wants to be a place.
background
I talked to a guy last week. He lives in two worlds. With one hat on, he’s a major investor; runs billions of dollars in investment. Has been doing it for a long time. Early into venture capital, into leveraged buyouts, been making more money at higher rates of return than other people for a long time.
background
He and his wife, who’s also a high-powered professional, have a foundation, pretty big one, hundreds of millions of dollars. It does a lot of good stuff. They’re interested in our fund, and it’s causing them to think about their money in a different way. With their investment hats on they’re all about return, just risk return. How much money comes in how fast.
background
In the foundation office, they just give money. They’re pretty traditional; their foundation has never done an investment related to its mission.
Take away the billions they have to play with and they’re pretty much like most people. Investing and giving come from totally different places.
background
But in the space between those two places, they want to be involved with our fund. In the hallway between those two offices, they can imagine investing.
In that hallway is where we are creating a new asset class, somewhere between giving and investing. As clear headed as investment and as warm hearted as giving.
background
Market interventions need to do the things the public
safety net used to do.
background
Why a change is needed
Sustainable interventions using the market to change the game and help people
bridge the gap
What Goodcap does
background
In traditional two pocket thinking, the money you invest flows back to you.
Giving thru philanthropy flows away, with no return.
background
philanthropy
investment
When good and capital come together, the money flows back to you after its made an impact in the world. It’s
recyclable giving; more change for your buck.
background
Rather than wondering What your money is doing
in your name, you have the confidence of knowing
--by creating accountability for good impact, and accountability for
financial performance
Keep an eye on your money and your impact
background
investment | philanthropy
New capitalwith new power to make change
timetime consumptionconsumption
investmentinvestment philanthropyphilanthropy
overview
investmentinvestment philanthropyphilanthropy
timetime consumptionconsumption
new patterns of changetraditional behavior
Were part of a big change happening on a lot of levels.
investmentinvestment philanthropyphilanthropy
timetime consumptionconsumption
time > patterns
Traditional• job security• company loyalty• corporate growth
New patterns• multiple employers• career loyalty• personal growth
© Graphic conceptualizations © Mark Beam, Collective Intelligence 2007
investmentinvestment philanthropyphilanthropy
timetime consumptionconsumption
consumption > patterns
Mass consumption• commodification• created needs• believing ads
Conscious consumption• buying local• fair trade• deconstructing ads
© Graphic conceptualizations © Mark Beam, Collective Intelligence 2007
• energy awareness• smart buying• local food• fair trade
consumptionconsumption
consumption > patterns of change © Graphic conceptualizations © Mark Beam, Collective Intelligence 2007
consumptionconsumption
consumption > patterns of change
energy awareness smart buying local food fair trade
© Graphic conceptualizations © Mark Beam, Collective Intelligence 2007
investmentinvestment philanthropyphilanthropy
timetime consumptionconsumption
investment > patterns
Traditional Capital Market• two pocket thinking• risk and return • impact not your problem
Good Capital market• third pocket• blended value• risk return & impact
© Graphic conceptualizations © Mark Beam, Collective Intelligence 2007
investmentinvestment philanthropyphilanthropy
timetime consumptionconsumption
New patterns• third pocket• transparent intermediaries• recyclable giving
Traditional giving• second pocket• scarcity • costly fund raising
philanthropy > patterns © Graphic conceptualizations © Mark Beam, Collective Intelligence 2007
• Kiva, Microplace• Acumen Fund• Social Venture Partners• 400 giving circles
philanthropy > patterns of change
philanthropyphilanthropy
© Graphic conceptualizations © Mark Beam, Collective Intelligence 2007
philanthropy > mission investments
Foundation investmentsFoundation investmentsstart aligning with missionstart aligning with mission
philanthropyphilanthropy
philanthropy > mission investments
Similar nearby categories Similar nearby categories also experiencing an upsurgealso experiencing an upsurge
philanthropyphilanthropy
Areas like Community investing,
Community investment venture capital
Now growing with at double-digit rates.
investment | philanthropy > patterns
Attention Curve:Blended Value investing
is growing
© Graphic conceptualizations © Mark Beam, Collective Intelligence 2007
investment | philanthropy > patterns
Attention Curve
© Graphic conceptualizations © Mark Beam, Collective Intelligence 2007
New money and new people are in the room,so the story is broadening to include the
next concentric circle beyond the early adopters
Not just the true believers anymore;GoodCap & Merrll Lynch private bankers
are working on co-branded research on the Blended Value investing trend
overview > emerging market signifiers
consumption > emerging market signifiers
Some of the stories are like this one:Cleveland Coffee; a deep story with a daily decision
An example of replicable conscious consumption
consumption > emerging market signifiers
New habits create new opportunities. Take the Fair Trade coffee company that penetrated three cities, Cleveland, Boston and Seattle, with a curriculum for fifth graders in social studies, explaining fair trade in terms of other 10 year old kids growing up with their friends and extended family in their village vs. moving to a capital city squatter slum. The story was modified for the blue haired lady’s Sunday school and again for Rotarian interested in global security, etc. The result: a continuing 30 % annual increase in sales.
Telling the story like the brain is wiredTruth in advertising
investment | philanthropy > social investing
social investing 1.0
social investing 2.0
Trapped in “Do just as well while doing good”
Responding to a new moral hunger, embracing
blended value
Old style social capitalIn the old style double bottom line view,
the social value hides behind a spreadsheet.
The new waveThe total blended value becomes clear.
as we acknowledge our desire for impact
investment | philanthropy > social investing
© Aquillian Investments LLC, Aquillian.com
Tired: Efficient Frontier
© Aquillian Investments LLC, Aquillian.com
Wired: New Efficient Frontier -A new, third dimension where risk and return balance with impact.
Wired: New Efficient Frontier -A spectrum of players in the new space where risk and return are balanced with impact.
© Aquillian Investments LLC, Aquillian.com
Investor mindset has changed
investment | philanthropy > patterns
• Good Capital• Calvert • Danone
New, and established institutional funds are responding.
© Graphic conceptualizations © Mark Beam, Collective Intelligence 2007
As clear headed as investing, as warm hearted as giving:
The Blended Value Asset Classclaims its space.
investment | philanthropy > social investing
investment | philanthropy
New capital with new powerto make change
• Working Today• Evergreen Lodge• Real Benefits• The-hub.net• Pura Vida• Indigenous Designs• The Benefit Bank
good capital > where
Social enterprises ready to grow
accelerating the flow of capital to good
Graphic conceptualizations © Mark Beam, Collective Intelligence 2007 • Impact graphic © Aquillian Investments LLC
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