accelerating the flow of capital to good

© 2007 all rights reserved

The hallway Investment office

The story of one couple, in two rooms and a hallway that wants to be a place.

Foundation house, and investment tower

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

Why a change is needed

Market interventions need to do the things the public safety net used to do.

background

What Goodcap does

Sustainable interventions using the market to change the game and help people bridge the gap

background

philanthropy investment

In traditional two pocket thinking, the money you invest flows back to you. The money you give flows away from you and doesn’t come back.

background

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

Transparency gives the investor more control

Rather than wondering what your money is doing in your name, you can have the satisfaction of a donation without the traditional accountability or incentive-alignment problems. Problems like: is your core business raising money, or is your core business providing your service?

New capital with new power to make change

investment | philanthropy

time

consumption

investment

philanthropy

overview

time

consumption

traditional behavior new patterns of change

investment

philanthropy

We’re part of a big change happening on a lot of levels

time

Traditional • job security • company loyalty • corporate growth

consumption

New patterns • multiple employers • career loyalty • personal growth

investment

philanthropy

time > patterns

© Graphic conceptualizations © Mark Beam, Collective Intelligence 2007

time

Mass consumption • commodification • created needs • believing ads

consumption

Conscious consumption • buying local • fair trade • deconstructing ads

investment

philanthropy

consumption > patterns

© Graphic conceptualizations © Mark Beam, Collective Intelligence 2007

• energy awareness • smart buying • local food • fair trade

consumption

consumption > patterns of change

© Graphic conceptualizations © Mark Beam, Collective Intelligence 2007

consumption

energy awareness

smart buying

local food

fair trade

consumption > patterns of change

© Graphic conceptualizations © Mark Beam, Collective Intelligence 2007

time

consumption

Traditional Capital Market • two pocket thinking • risk and return • impact not your problem

investment

Good Capital market • third pocket • blended value • risk return & impact

philanthropy

investment > patterns

© Graphic conceptualizations © Mark Beam, Collective Intelligence 2007

time

consumption

Traditional giving • second pocket • scarcity • costly fund raising

investment

New patterns • third pocket • transparent intermediaries • recyclable giving

philanthropy

philanthropy > patterns

© Graphic conceptualizations © Mark Beam, Collective Intelligence 2007

• Kiva, Microplace • Acumen Fund • Social Venture Partners • 400 giving circles

philanthropy

philanthropy > patterns of change

© Graphic conceptualizations © Mark Beam, Collective Intelligence 2007

Philanthropy: Foundation investments start aligning with mission
philanthropy > mission investments

Similar nearby categories also experiencing an upsurge
Areas like Community investing, Community investment venture capital Now growing with at double digit rates

Blended value investing is now growing faster
• Riding its way up the ATTENTION CURVE

Attention Curve

investment | philanthropy > patterns

© 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

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.

consumption > emerging market signifiers

Trapped in “Do just as well while doing good”

social investing 1.0

Responding to a new moral hunger, embracing blended value

social investing 2.0 Telling the story like the brain is wired Truth in advertising

investment | philanthropy > social investing

Old style social capital In the old style double bottom line view, the social value hides behind a spreadsheet.

The new wave The total blended value becomes clear. as we acknowledge our desire for impact

investment | philanthropy > social investing

Tired: Efficient Frontier

© Aquillian Investments LLC, Aquillian.com

Wired: New Efficient Frontier A new, third dimension where risk and return balance with impact

© Aquillian Investments LLC, Aquillian.com

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

• Good Capital • Calvert • Danone

Investor mindset has changed

New, and established institutional funds are responding.

investment | philanthropy > patterns

© Graphic conceptualizations © Mark Beam, Collective Intelligence 2007

As clear headed as investing, as warm hearted as giving: The Blended Value Asset Class claims its space

investment | philanthropy > social investing

New capital with new power to make change

investment | philanthropy

Social enterprises ready to grow

• • • • • • •

Working Today Evergreen Lodge Real Benefits The-hub.net Pura Vida Women’s Bean Project The Benefit Bank

good capital > where

accelerating the flow of capital to good Goodcap.net Goodcap’s xigi map
http://www.xigi.net/index.php?map=entity&map_en=338
Graphic conceptualizations © Mark Beam, Collective Intelligence 2007 Impact graphic © Aquillian Investments LLC