This story originally appeared in our May 5, 2011 e-magazine. Click here to subscribe.

Ben Powell, the Founder and Managing Partner of Agora Partnerships, an impact investment firm that works with early stage companies, reveals how to get the attention of impact investors.

What do you look for in an investee?

The number one thing that we look for is someone who, in our view, is an impact entrepreneur. We really look to see if the entrepreneurs truly are trying to create shared value with their businesses. We are looking at a set of values and attitudes about the role of business in society and a real commitment to creating a company that will very deliberately solve social and environmental problems while also generating a profit that can be used to grow the company and to reward investors. » Continue reading “What Investors Want”

This story originally appeared in our December 17, 2010 e-magazine. Click here to subscribe.

Like almost everyone involved in the social space, investors, too, are interested in solutions that can scale, but the fragmented nature of Indian agriculture makes that a challenging proposition.

Input

Most farmers in India still use seeds harvested from the previous year’s crop. Although genetically modified seeds are more expensive, they can triple a farmer’s yield. This market is generally monopolized by big companies—Monsanto, Nuziveedu and Pioneer Seeds—because of the intensity of research and design. Although the introduction of these seeds has been controversial in India, investors are optimistic about the effects. » Continue reading “Top 5: Investors’ Agriculture Picks”

The growing industry of impact investing, which facilitates investments based on social impact rather than financial returns, got a boost earlier this week when a report released by J.P. Morgan and the Rockefeller Foundation declared impact investment a new asset class. In this issue, we look at the investment opportunity in India, how investors measure the impact, the movement to create social stock exchanges and some impact investors already making waves in the sector.

As always, we want to hear from you! If you have any comments, thoughts, or feedback, leave a comment on a specific post or get in touch.

Sign up to receive the newsletter in your inbox.

Also this issue, we are launching a readers’ survey. In September, we started our new, redesigned e-magazine. After six issues, we’d love to hear your thoughts. We would appreciate if you could take few minutes and fill out this survey before December 14.

This story originally appeared in our December 3, 2010 e-magazine. Click here to subscribe.

In the first issue of Beyond Profit, published in April 2009, we wrote about the emergence of the impact investing industry, which facilitates investments that create a positive social impact beyond financial return. Earlier this week, a report by J.P. Morgan and the Rockefeller Foundation declared impact investment a new asset class—a remarkable development in the lifecycle of this industry. What does it mean for social enterprise? Lindsay Clinton analyzes the current landscape.

On November 29, J.P. Morgan and the Rockefeller Foundation released a report that will likely serve as a turning point in the development of impact investing. The report, which assesses expected and realized returns of more than 1,000 impact investments, estimates that the industry presents an investment opportunity between US$400bn and US$1 trillion with profit potential between US$183bn and US$667bn. Importantly, the report declares impact investment an asset class which provides a strong indicator to investors who may have shied away from social investing in the past to reconsider this emerging investment category. » Continue reading “Impact Investing: Challenges and Opportunities”

This story originally appeared in our December 3, 2010 e-magazine. Click here to subscribe.

Social businesses often have a hard time securing private capital. A few entrepreneurs are working to apply the fundamentals of traditional stock exchanges to social enterprise. Abby Callard reports.

The constant ring of telephones bounces off the wall. Sweaty men in suits yell back and forth. Millions are made, and millions are lost in seconds. These are the stereotypical images of a stock market. A novel idea—creating a social stock market—has been floating around for the past few years. But what would this stock market look like?

Robert Kraybill, the Managing Director of the Impact Investment Exchange Asia—the first planned social stock market in Asia—has a plan. » Continue reading “Building the Impact Investing Ecosystem: Social Stock Exchanges”

This story originally appeared in our December 3, 2010 e-magazine. Click here to subscribe.

Morgan Simon, Founder of Toniic, a new company that will aggregate angel investments in the social enterprise sector, spoke to Nisha Kumar Kulkarni about the need for such an organization and current challenges that investors face.

Toniic, a new aggregator of angel investments will facilitate global investments in the social enterprise space. The organization will work to increase the amount of early-stage funding for entrepreneurs working in the developing world. Through innovation partnerships, Toniic hopes to make investing easier.

BP: How would you define impact investing? What does that term mean to you?
MS: Impact investment is an important tool for those who seek a more equitable and sustainable society. Unlike philanthropy, which seeks to maximize social impact without a need for financial return, and conventional investment, that seeks to maximize returns without any regard for social impact, impact investment provides an opportunity for individuals and institutions to have their cake and eat it too; achieving the financial returns they require while also seeking to maximize social impact. This might mean providing financing for a school or health clinic that will ultimately, unlike a charitable institution, be a self-sustaining entity. Hence, for many entrepreneurs, impact investment rather than donations can also lead to greater long-term sustainability, as they specifically use funds to ensure that projects will continue in perpetuity without the need for annual donor support. It can also ensure that they can be most responsive to the needs of their communities, as their clients are their patrons rather than external donors. » Continue reading “Interview: Morgan Simon, Founder of Toniic”

This story originally appeared in our December 3, 2010 e-magazine. Click here to subscribe.

Can market-based solutions help the poor? The growing crop of impact investment firms across the globe point to “yes.”

Gray Ghost Ventures

The Atlanta-based Gray Ghost Ventures (GGV) is an impact investment firm that has committed more than US$100m to entrepreneurs tackling the needs of low-income communities in emerging markets, with significant focus on India. The firm wears many hats from investor to partner to funder to manager. The focus of GGV’s work is on microfinance, social venture investment, and affordable private schools. Examples of successful investments are D. Light, United Villages, and 2i Capital. Since 2003, GGV has established the Gray Ghost Microfinance Fund, the Gray Ghost DOEN Cooperatief, First Light Ventures, and Gray Matters Capital. » Continue reading “In Profile: 5 Investors Making Social Impact in India”

This story originally appeared in our December 3, 2010 e-magazine. Click here to subscribe.

There’s no doubt that the demand for investment is growing, but how much opportunity is there? Nisha Kumar Kulkarni examines the investment potential and how it’s being measured.

Approved Proposals and Credit Issued under India’s Credit Guarantee Fund Trust for Micro and Small Enterprises

Since 2000, the Small Industries Development Bank of India has increased the amount of credit issued to micro, small and medium enterprises. There has been growing demand for bank funding. » Continue reading “By the Numbers: Today’s Impact Investing Industry”