“There is no passion to be found playing small — in settling for a life that is less than the one you are capable of living” — Nelson Mandela

Time is Nothing // Around The World Time Lapse from Kien Lam on Vimeo.

Investing_for_impact Credit Suisse — Schwab Report

The report lead me down an interesting thought path on the “next steps” of the sector…

Evidence:  The report highlights several successful social enterprise models that are part of Schwab’s network. My personal favourite was Bam Aquino of Hapinoy in the Philippines — investment funds that creates sustainable distribution channels and business development strategies to empower formerly isolated and informal sectors of the Filipino economy. The report above, complements the Data Driven JP Morgan-GIIN report, that drills drown into the numbers and breakdown of social enterprise in different sectors.

As a next step, I would love to see a report that focusses more on the accessibility and availability of investments in the space — from an investors perspective. Coming from an asset-management background, I have developed a strong belief that understanding the investment is just as important as knowing your investment options. Currently, main-stream investor’s exposure of ‘social’ in investments are SRI offerings — they need to be educated on different entry points and impact investing product offerings ranging from an institutional and private client perspective. A great starting point to this step is Impact Asset’s 50: A listing of Impact Fund Managers.

Failure: With the industry in a growth stage, as great as it is to know the successes and the landscape, it is just as important to know the failures. Where did we go wrong? What worked? How did you manage to pivot? How do you prioritize your mission and your finances? When did you know the time to scale? There is such a stigma with failure in the non-profit/charity world. This stigma should NOT be carried forward into the impact investing/social enterprise sector. Failure is a gift — and the ability to speak freely to learn from them, should be embraced by this sector. A wonderful example of embracing failure is the EWB Canada’s Failure Reports. I would love to see a similar initiative in the impact investing sector. Even internally within organizations — as a start.

Road-Map: There is a wealth of information on impact investing that has been churned up within the last few years or so. The issue is knowing where to look: from funding social enterprises to exiting an investment. A natural next step to this would be for various stakeholders to share their “how-tos” and points of consideration in the impact sector. Some organizations have already begun to pave the way for this, but what we need is for more road-maps to appear so at the very least, when you’re at the starting line — you have a general sense of direction on where to go.

Note: I had the pleasure of co-organizing the event I wrote up below, and it turned out to be one of the most inspiring nights in my young professional career. Many thanks to the team at YWiB as well as all the attendees for being so honest and open. 

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“Stories set the inner life into motion, and this is particularly important where the inner life is frightened, wedged, or cornered. Story greases the hoists and pulleys, it causes adrenaline to surge, shows us the way out, down, or up, and for our trouble, cuts for us fine wide doors in previously blank walls, openings that lead to the dreamland, that lead to love and learning, that lead us back to our own real lives as knowing wildish women.”

—Clarissa Pinkola Estes

Stories are how people make sense of their worlds. As a child, we spontaneously play out stories on who we hope to become and how people relate to one another. As teenagers, we continuously explore our own stories and others in order to understand our ever-expanding world. As adults, the stories that we tell and fall in love with are the ones we value most in this world. In a very real sense, stories are a window into how we perceive the world around us and ultimately, influences our humanity.

It is through the power of stories that Young Women in Business (YWiB) brought together 20 influential women leaders and 20 upcoming young women for an evening of shared values, fears and hopes in Vancouver, Canada this past weekend.

The 40 women came from a myriad of backgrounds: high profile Canadian politicians. Mothers. Partners of legal and financial firms. Trail-blazers. Successful social entrepreneurs. Aspiring young professionals. And above all, lifelong learners. The vision for the evening was to connect those who have paved the opportunities facing young women today, with those who have the eagerness to make a difference in their communities.

Questions posed to the both generational ends of the conversation included:

• What has been one of your most vulnerable moments?
• What do you not like being stereotyped as?
• In one sentence, what would you wish most for your future self?
• What do you look for in a business partner? how about a personal relationship?
• What are components of a healthy relationship? (business, mentorship, romantic relationship)
• What will be different in your life in exactly 1 year?

As the night started, each women shared genuinely her story and how she got to where she is. Several key trends and themes emerged:

1) On work and leading a balanced life

“Our (older) generation overdid it. We overcompensated for our weaknesses and gender when we should have been owning it. We pounded away and sacrificed too many things. Please be smart on how you work.”

“Work with people who have a value base.”

“Your why is more important than your fear. Women have to think bigger and take more risks.”

2) On health

“Watching someone die is one of the best and worst things in life. It puts everything into perspective. Being alive and healthy is a privilege. Cherish it while you can.”

“ Do not ever ever give up on a balanced life.”

3) On inter-generational sharing and mentoring

“My whole life has been spent being spotted and mentored by other intelligent men and
women. It’s not being a man or a woman, it’s about being presentable, intelligent and knowing what you’re talking about.”

“Decisions that are complemented by men AND women are better. Include men in conversations and remember to make sure your that voice is heard.”

As attendees left for the night, each walked out a little more courageous, a little more humbled and a little more inspired by the stories that were shared over last the previous two hours. The salon was particularly a beautiful reminder on the strength of inter-generational relationships. When we start sharing from a place that is vulnerable, we start to see each generation’s defining moments — making us listen closely to people around us and more importantly, to ourselves.

In the social enterprise world, one key issue that constantly resurfaces, as it would in any growing sector, is one of funding and identifying a proper investment pipeline. The accessibility and  availability of start-up funding is crucial to startups, and in the case of social enterprises, a largely untapped market. Here’s whereInvest2Innovate (i2i) comes into the picture. They are a social enterprise intermediary that supports the growth of social entrepreneurship in new markets, helping funders and early stage entrepreneurs see eye to eye.

I had the opportunity to connect with Kalsoom Lakhani the founder and CEO of i2i to interview her about her recently launched social enterprise. A trailblazer and native to Pakistan, Lakhani launched i2i’s pilot in Pakistan in September 2011 with plans to expand operations to other countries post 2012. Here’s what she has to say about her startup and the space:

1) What is most interesting to you right now in the social enterprise space? 
There are many interesting innovations taking place right now – from groundbreaking SMS crowd-mapping tools to agriculture-based innovations for small farmers. Innovative tools & approaches of engaging and empowering low-income communities are coming up constantly. But I’m also extremely interested in the growth of the impact investment space, and where we are right now in terms of the community as an emerging asset class, whether or not this type of investment breeds better social impact metrics, and whether the capital is flowing to the right places. There are still a lot of spaces we need to fill when it comes to connecting capital to social enterprises, particularly at the early-stage, and it’s interesting to see how crowd-funding and other innovative ways of raising capital are becoming potential solutions to help fill that gap.

2) Why start up i2i? Why is this the time to enter into the market? 
i2i was launched in order to help address some of the disconnects in the social entrepreneurship space. Prior to launching the company, I worked in venture philanthropy for over three years, providing seed funding and support to early-stage social enterprises mainly in Pakistan. I was first exposed to the “space” then, and quickly immersed myself in all things social entrepreneurship & innovation. It has been fascinating and motivating to see growing ecosystems in markets like India, Latin America (Mexico, Brazil, Chile are good examples), and East Africa. Beyond higher access to capital (a lot of impact investors operate in these countries), we’ve seen the growth of other players that further support social enterprise – incubators, accelerators, government policies (in some cases), intermediaries, etc.

i2i was founded to take a similar ecosystem approach in the “untapped” markets – that’s a lot of jargon I know, but essentially we provide tailored services to early-stage social enterprises to grow their businesses and connect them to capital. Pakistan, our pilot market, is a great example of a country where there is a significant need for more innovative and market-based approaches to development – 66% of the population live on under $2 a day – but where the environment for social entrepreneurship is relatively new. Entrepreneurs often lack the tools & services to maximize the potential of their models and attract capital, especially in markets like Pakistan, where the volatile political and security situation hurt the investor environment. There is a lot opportunity for i2i, as an intermediary, along with other partner organizations, to be the architects of the ecosystem, fostering the social entrepreneurship space both from the top-down and the bottom-up.

3) What is the biggest misconception you see in the world of social enterprise and where do you stand on the issue? 
I think the biggest misconception in social enterprise is that it’s ok to stop at the “warm & fuzzy” and throw the term around irresponsibly. It drives me crazy. Social enterprise ultimately combines the best of the business and the charity world – it begs the question, “Could we magnify social impact if we take a business approach to development?” Social entrepreneurship is not the solution to everything, but in some cases, it can be really effective. For instance, if rural low-income communities that are off the electricity grid use kerosene as their light and heat source, not only is it a costly product, but it poses terrible health and environmental ramifications. Displacing this demand for kerosene with clean energy solutions provides these low-income communities with better alternatives at comparable prices, ultimately contributing to poverty alleviation. Social enterprises need to demonstrate social and/or environmental impact – that is what tends to qualify the “social” in the equation, but at the end of the day, they are businesses that need to have strong models and be sustainable in the long-term. Sometimes that gets lost in the “warm & fuzzy” stories we hear in the space, which are great in communicating an organization’s vision and building a community of supporters, but there needs to be substance behind that story.

4) What is one action would like people to take once they know if i2i? 
If you are a social enterprise, especially in Pakistan (since that is our pilot), get in touch with us to get an assessment of your business and how i2i can provide services (from business development to communications/marketing) to help your organization grow. If you are a potential investor (both for i2i and/or interested in early-stage enterprises in new markets), we’d love to talk to you! And finally, if you are just a supporter, we are always excited to hear your feedback and make our model better.

1) Build a picture: Prezi is a fantastic tool when you are trying to present a concept as an overall vision. It adds the dimension of space to the presentation which is a blessing in disguise. I find the best prezi presentation is a picture that you build in an audience’s mind. When the presentation is finished, it really should be a complete single picture with a few takeaways. This is the most important differentiation point on why you should pick prezi over keynote: when you want to construct a visual picture as opposed to a linear flow of ideas.

2) Draw out your presentation: When constructing this presentation, I spent a long time beforehand thinking about what I wanted my final picture to be. I knew the message I wanted to deliver: the acumen story in two parts — the business/investment process and moral leadership. How that information is presented is a different story. I chose a mountain and split my presentation to show the first part and then unveil the lower half of the mountain as the second story.

3) Construct your path: I love the zooming ability of prezi, and when used properly, can really add alot of impact to your presentation. My two favourite ways of using this tool is the ability to give a sense of diving into something, or moving from one concept to another (think — movie reel). I personally haven’t been able to find an effective way of using the tool that rotates words (unless its surrounding a circle) as I find that it disrupts the flow path instead of adding (I’ve had feedback where I was overly excited and use it too much — people actually became dizzy with the zooming in and out).

Hence, this tool really should then be used to unveil layers (think — Inception dream layers) in your presentation — however deep you want to dive. Keep the layers consistent working from big –> small, or in my presentation above, I chose to go small –> big. For my presentation the 3 layers I wanted to create was moving from the core of Acumen — creating a world beyond poverty, to the how of their business model, building on that to their complete picture which includes moral leadership, and finally the overall call to action of getting involved with Vancouver for Acumen.

If you’re interested in getting in touch to learn more about VANCOUVER+acumen/Acumen Fund, please feel free to be in touch!

Note: The pictures in my prezi is an Acumen investment: WaterHealth International. You can read more about them here.

*All pictures and images are the property of VANCOUVER+acumen and Acumen Fund. 

I’m really excited to announce that I will be speaking at the inaugural Canadian Global Impact Investing meetup in Vancouver on behalf of the group — sharing the acumen model (both on a global and chapter level) to the impact investing community in Vancouver. The event will be held on Wednesday, Nov 23rd from 6:30pm — 9pm at SFU Segal Graduate School of Business in downtown Vancouver. You can check out more details about the event here.

Three other organizations will also be presenting at the event: Vancity, Global Catalyst Initiative and Opportunity International Canada. Also, at the event, they will be giving away door prizes ( 2 books I couldn’t recommend highly enough): Impact investing: Transforming How We make Money While Making a Difference – Jed Emerson, Antony Bugg-Levine and Banker to the Poor – Muhammad Yunus.

See you on the 23rd. Looking forward to connecting with other fellow impact investing/social enterprise champions.

So 2 quick updates. Upcoming (free!) webinars on impact investing.

1) How to Be An Impact Investor hosted by MaRS Centre for Impact Investing

Date: Thurs, Oct 27th 2011

Time: 12pm — 1pm (EST)

Key themes/questions (from event description):

• How do you convert your motivations for a just and equitable society or a pollution-free environment into an effective investment policy statement that will enable you to make both positive impact and seek the financial return requirements of your organization?
• What level of due diligence should you conduct to determine whether a venture is a good candidate for such investments?
• What skills and expertise can you draw on internally or acquire through external advisors or managers to aid in your decision-making process?
• What opportunities and challenges should you be cognizant of as you seek to re-align your investment portfolio with your mission and values, both organizationally and personally?

2) Impact Investing: Challenges and Prospects hosted by Jed Emerson and Antony Bugg-Levine

Date: Mon, Nov 7th 2011

Time: 12pm –1pm (EST)

Key themes/questions (from event description):

• Roots of impact investing, examples of its practice today
• Challenges that need to be addressed: regulations, cultivating transformational leaders, measuring blended value, bringing in philanthropic capital, limits and challenges of impact investing
• Charting a course for ‘blended value’ investment strategies that make money while improving social and environmental conditions.

*The post below was orig­i­nally pub­lished on http://www.socialearth.org on Oct 11, 2011

Capitalism has alot to answer for these days. Members of this group range from ardent Occupy Wall Street protesters to a sense of common vision that seems lacking amongst citizens. Today, we turn to four wonderful publications highlighted at  SOCAP11  that has been creating momentum to redefine capitalism and would be a significant contribution to the public debate.

1) Impact Investing: Transforming How We Make Money While Making A Difference – Jed Emerson, Antony Bugg-Levine

This ground-breaking book should be your first choice to pick up to explore the transformative power of impact investing. The book explores an integrated alternative to traditional philanthropy and investing – highlighting the applications of impact investing as well as its potential. It demonstrates how it is and can be a positive disruptive force. Perhaps the most interesting angle of this book is the usage of time with impact investing, providing a historical and predictive perspective enabling readers to have a solid understanding of what the present holds. The authors ultimately offer a optimistic vision for what we can collectively achieve when our assets work in unison with our values. As a bonus, I can assure you that the authors are as inspiring in person as they are in the book. No jokes.

Further Resources:

• My interview with one of the authors, Antony Bugg-Levine
• The HIP Investor: Making Bigger Profits by Building a Better World

2) Innovations Journal: SOCAP 11 – Impact Investing Special Edition

I’ve been a big fan of Innovations – quarterly compilations of commentary, research and essays from leading innovators in their field. There was a special edition of Innovations for SOCAP11 containing a myriad of perspectives on building the intersection on money and meaning as part of the solution to global challenges. Below is the complete list of contributors in this special edition.

My pick out of all the essays was one by Robert Katz and Brian Trelstad of Acumen Fund on Mission, Margin and Mandate. The essay firstly unwraps the definition of scale and sustainability and then lays out the three paths to achieve this goal through mission, margin and mandate. I was particularly hooked on the dilemma presented: what should take precedence when building out a social enterprise?

• “At what point do you evangelize your solution to raise mission-based grant capital or volunteer support to work on that new product?
• At what point to you buckle down and simply execute on sales and service to grow your margins?
• When do you approach the government for changes to policy that might help get that mandate to scale?”

Further Resources:

• You can obtain a free copy of their essay here
• Bonus offer: Write an Amazon review for the SOCAP11 Impact Investing Special Edition and receive a free subscription to the Innovations Journal.

3) Design for the Other 90% – Cynthia Smith, Paul Polok

“It is a discipline that uses the designer’s sensibility and methods to match people’s needs with what is technologically feasible and what a viable business strategy can convert into customer value and market opportunity”. Tim Brown, Change By Design

This book is an extraordinary collection of more than 30 design projects targeted specifically to design low-cost solutions for the world’s population that have little or no access to most products (the other 90%). The stories and brilliant illustrations (partnered with the Smithsonian’s Cooper Hewitt, National Design Museum) takes the reader through unique ways to provide better access to basic needs and how innovations in design are often the most successfull in addressing these issues.

Further Resources:

• IDEO’s Human Centered Design Toolkit
• Support: IDEO’s mission to design an end to poverty

4) A New Foundation for Portfolio Management - Portfolio 21, RSF Social Finance

One of the fundamental concepts that permeates portfolio construction and the asset management world is Modern Portfolio Theory (MPT) – how do you maximize portfolio expected return for a given amount of risk by choosing various proportions of assets. This paper is a great starting point in a call to arms to reevaluate MPT in light of the impact of ecological limits and global impact of investments. The premise of the paper focuses on: 1) Integrated Risk; 2) Selective Growth; and 3) Multidimensional Utility Function to provide investors clarity on the long-term implications of managing a portfolio that goes beyond a purely financial purpose.

Further Resources:

• Portfolios of the Poor: How the poor live on $2 a day  - Daryl Collins, Jonathan Morduch, Stuart Rutherford, Orlanda Ruthven

“Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma – which is living with the results of other people’s thinking. Don’t let the noise of other’s opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.”

- Steve Jobs’ Stanford Commencement Address

There are three things about development data that you need to know: 1) It is beautiful; 2) There is a hidden story within each combination; and 3) It needs to be set free.

Last year, the World Bank released it’s prized possession of data – one that tells the stories of economic, socio and political realities around the world. This is a push to “democratize development data” and embrace its open information policy. It’s absolutely incredible what has been done with the data and I wanted to highlight some of the initiatives that have been born out of this:

1) http://data.worldbank.org/

This is the main Knowledge Bank where you can information from poverty rates to the average life expectancy of a country. Data is sorted by topic, countries, indicators, sectors and the World Bank even made a neat feature of key development indicators around the world. It covers over 200 counties and in some cases, dates back as far as 50 years.

The data is updated regularly and as you can see from the screenshot below, you can even find information on the newest country in the world – South Sudan! The site includes the Bank’s widely-used and extremely useful datasets: the 2010 World Development Indicators (WDI), Africa Development Indicators (ADI), Global Economic Monitor (GEM) and Global Development Finance.

2) Apps for Development

With the launch of the the above resource, the World Bank organized an Apps for Development Competition – bringing together the best ideas from developers and data to create useful software applications that is related to the Millenium Development Goals (MDGs). The competition was a tremendous success and the Bank received apps from 36 countries: 30 of the 107 final submissions from Africa. You can check out the winners from this competition here.

A side spinoff from this competition was also an International Day Hackathon on Dec 4th last year where developers write applications using open data to support and encourage the adoption of open data policies by the world’s governments. My favorite application is the San Francisco Crimespotting – an interactive map of crimes in San Francisco and a tool for understanding crime in cities. Helping keep people safe with open data. Amazing!

3) Mapping for Results

This Platform provides detailed information about the World Bank’s work in poverty alleviation and development around the world. It provides access to interactive maps that highlights locations of the bank’s projects around the world and involved releasing data provided by governments and other entities.

4) Data on the Go!

The World Bank is bringing accessibility of data to a whole new level by providing information on an iPhone app. They have six apps ( 4 published and 2 in the pipelines) that are being developed and the interface and usability for the data is just incredible. My personal favorite is the classic Datafinder – an app that lets you access 50 years of WB data on global economic indicators that can easily be shared in presentations, research and projects. Two more apps are being released in August 2011 – The World Bank at a Glance and the World Bank’s Finances.

Data is truly beautiful and with the world’s development data at your fingertips, we can use, analyze and even criticize.. but the only thing we shouldn’t do is ignore it. The video below is an example at how magical data can be. 4 minutes – 200 countries, 200 years by world renown economist – Hans Rosling.