MILLENIAL_REPORT_2016MAY11

Harvard impact investing course, she describes can learn from others”
how they were looking an impact investing
as a financial mechanism, but that is rarely “The most valuable thing has been
talked about at the foundation philanthropy learning from people who have an
conferences. Sapphira says if she was expertise that I don’t.”
exclusively going to foundation conferences,
she would not think of impact investing as a “Feel comfortable asking questions.
way to make financially viable investments. Everyone I’ve spoken to in this space has
At such conferences, she says, “I’ve heard been happy to answer my questions, and I
‘impact investing is a way of working some have been open about sharing my successes
social impact into your investments but it’s as well as challenges.”
never going to achieve financial returns that
are comparable to traditional investments.’” “Take It From Us”
She feels that most people do not understand
the spectrum of financial returns possible from Some thoughts on how financial
impact investments, and this poses a challenge advisors and millennial impact
to impact investing becoming mainstream. investors can collaborate

Lessons Learned Clients and advisors can collaborate and
learn from each other. By increasing her own
What recommendations do you have knowledge about impact investing, Sapphira
for millennials getting started? found that asking her advisor for input resulted
in a two-way education that was mutually
We need a more well-rounded education. beneficial – the advisor provided guidance on
• “To feel comfortable assessing impact the financial terms and Sapphira was able to
and social metrics and to understand make the case for impact investing. •
the financial language.”
• “To be bold and share so that you

Sapphira Goradia - Grantee kids at Pratham.

Millennials in Impact Investment Report 2016 51

8. Connecting Money with Meaning

Eric
Age: 37
Domicile: US, New York
First impact investment: negative screened funds and
green bonds. First loan was to the Impact HUB LA
(http://impacthubla.com). First large scale “investment”
was Leap Forward.

Personal Transformation, Transcending Fear,
Unlearning His Understanding of Money — Getting to Know Eric

In order to model the change he wants to
see in the world, Eric has had to confront his
attitudes, beliefs, and fears attached to the
meaning of money.
Like most people, Eric inherited his money
stories from his community and family.
Eric’s grandparents lived through the Great
Depression, an era of economic deprivation
and uncertainty. This experience influenced his
family’s perception of money for generations,
as it has impacted many other American
families. Money meant security and safety, not
just for him but also his family.

Millennials in Impact Investment Report 2016 52

“I grew up thinking that money was scarce starting with his own, and he experienced
and was the true safety net and that earning how his and other’s unconscious emotions and
money and being safe was the top priority. associations with money can divide us from
I never really learned about using money as each other. He found the root problem.
a tool for empowerment. The current He feels that a collective effort at a massive scale
financial system doesn’t model that for us. is needed: “We need to invest the same kind of
It doesn’t model how to use money to really energy, political will, finances, and manpower
benefit all, to invest selflessly.” that we put towards exploring space and
Eric’s journey has been one of challenging curing crippling diseases like HIV/AIDS towards
these stories and consciously creating his own understanding the neurological, psychological,
identity. Despite having $4M in the bank, he and cultural reasons why we create and maintain
lived with deep fears of not having enough. economies that don’t work for all.” Otherwise,
Eric believes that this fear lives inside each one he feels we will “only be moving chairs around
of us. Through learning to feel and understand the Titanic deck as it is sinking.”
himself, he is discovering his human nature and Journey Inward
what drives us to create the financial systems
rooted in that fear. “What was your approach to overcoming
First Steps your own personal blocks about money?”
“How did your early experiences as a
social entrepreneur shape your beliefs?” “I didn’t understand why I was running
After working with medical and biotech away from money. I didn’t understand
companies between the ages of 21 and 26, why I felt money was a wedge between
Eric volunteered in Nepal at an orphanage. people. I didn’t understand why I had shame
This experience was the first step in aligning and guilt for having money, or why I felt
his investments with his values. He came separate from others. I was always looking
back thinking, “there has to be a way to mix for an understanding of money and values
business skills with social good,” which led him but didn’t know how.” To begin to use his
to work for Ikatu International from 2008 to money as a tool of empowerment, he had to
2012, investing in small businesses and human look at his life experiences that shaped his
development in Ghana. perceptions of money.
Even with four years of exhausting effort and His entry point was taking a close look into his
the best of intentions, his efforts did not yield own portfolio. After inheriting money from his
much. Looking back, Eric recognizes that father, Eric invested traditionally. Over time,
he was trying to solve the wrong problems. he began shifting money towards impact. Yet
He recalls with awe his experiences seeing years later, he looked closely at his portfolio
organizations with the same humanitarian goals and was “horrified” – despite his belief that he
fighting over money, resources, and policies; was investing with his values, he was shocked
a divisiveness that ultimately weakens their to see how stuck he was in the old system.
collective efforts. “We had a shared vision, Even with an enormous sum of money, he was
yet we couldn’t come together.” He began terrified of losing any of it. “To boil it down,
investigating why. it was a fear of dying. The idea was that if I
His search led him to study human nature, don’t have enough money, I won’t have food,
shelter, I’d die.” He feels this fear is ubiquitous,
regardless of wealth.

Millennials in Impact Investment Report 2016 53

A breakthrough to overcoming this paralysis Family Dynamics
came when he met someone who, with
unconditional acceptance and support, What are some of the challenges you
helped him look at himself honestly in ways face interacting with your family around
he would not have done on his own. The more money matters?
he worked with her, the more motivated Eric How have you moved past some of
became to look at the mirror unflinchingly and those challenges?
the more he wanted to work with others on a
similar journey. Over time, a small group came Eric’s path forward has been to be clear on his
together to create a non-profit, Leap Forward, values, pursue authentic conversations with his
with a mission to transform the economic family and openly share his fears of the conflict
systems (as well as other broken systems) by that these conversations are going to bring
transforming themselves. up. While the conversations are terrifying,
He describes Leap Forward as the “living and facing them provides clarity of purpose, self-
breathing embodiment of my values.” He definition, greater intimacy, and freedom to
was so inspired by the results of the work, move forward.
that he offered to donate $1M. However, the
money sat in Eric’s personal bank account for It was clear for Eric that his parent’s traditional
the first year not really available to serve the investment model did not work for him. In
organization. His founding community that he their model, “Money is for creating wealth
likens to family was investing their time, talent, and philanthropy is philanthropy. Solving deep
and energy towards the organization while social issues is not part of the investment
earning a living in other ways. A collective equation.” Instead, he had to stand up for
decision was made to pay them a fraction on his own model, one where “money is only a
their salary from the Leap Forward fund for tool to create both financial and eco-system
one day a week so that they could contribute sustainability for all.”
even more to the organization. This is where
the conceptual donation suddenly became a The beliefs that worked for his parents do
reality and Eric became quite uneasy and his not work for Eric, yet the stipulations of his
powerful unconscious fears emerged. inheritance require him to consult the family
“I was so passionate about this project and on big moves. He battles with questions in this
yet I still had the fear that was ingrained in process such as “How can you stand up for
me since I was a kid,” of losing money, losing your beliefs when they are different than from
safety, losing security. To overcome this, he those who are advising you? How can you love
talked to his community openly and honestly. people so deeply and still feel empowered to
Even with the support of his team, it took Eric disagree with them?”
many months to actually transfer the money.
This experience was the beginning of a much Eric began a series of conversations with his
deeper, and still ongoing exploration about the family where he took his stand and conveyed
hidden stories he holds about money. his values. The conversations were challenging,
He believes that this type of honest and painful yet in the end, anchored him in his own self-
investigation of the disconnect between who definition and facilitated an even closer and
we believe ourselves to be and how we show more loving bond between his family members.
up in the world is essential for each of us to
participate in transforming our economy. Lessons Learned

What recommendations do you have
for millennials getting started?

Millennials in Impact Investment Report 2016 54



VI. Conclusions and Next Steps

W ith an estimated USD $30 trillion families co-developing effective processes
plus transitioning to millennials over for better communication; finding ways to
the next couple of decades, their bridge the generations in impact learning and
values, shaped by their families and informed investment decision making.
by a turbulent world, will most certainly All of the interviewees were honest and
drive change in the financial industry. Impact authentic in recounting their impact journeys.
investing appears to offer a meaningful way for Millennials want advisors and the industry
millennials to engage their capital and address they represent to not only earn their trust, but
social and environmental challenges. be willing to be transparent and authentic in
In this report we have examined what their relationships. There is an opportunity
millennials are investing in, how their values for millennials and their advisors to connect
are aligned with their investments, how they and build a relationship through ‘shared
working with their families and advisors, what learning’ as well as collaborate around impact
mechanisms they use to educate themselves investments. Financial advisors, in adapting
about impact investing and what are some of their practices, and developing collaborative
the challenges they face. impact investing solutions, can bring significant
The millennials we spoke to are demonstrating value to millennial clients.
a thoughtful, rigorous approach to impact While the challenges are many, these
investing. They are investing across asset millennials are demonstrating patience
classes and in a variety of impact themes. and resilience in moving their impact
Many are early on their journey and anticipate agenda forward with their families and
a greater move to impact investing in the next advisors. As part of the pioneering cohort
5 -10 years. Activism, philanthropy, career of millennial investors, their stories will have
choices, continuing education, entrepreneurism the opportunity to influence the significant
and impact investing are all parts of a holistic movement of more capital to impact.
life strategy for the millennials we interviewed. Limitations and scope for further research
We find that millennials are seeking more The Toniic survey, the basis for this report,
access to tailored capacity building in impact covers only a small number of millennials (58
investing; they want education, peer networks respondents). Hence the conclusions drawn,
and communities of practice to support their whilst interesting, are by no means conclusive.
impact journeys. This provides opportunities The findings within should be seen as
for communities of practice (GIIN, Toniic, qualitative rather than quantitative research. A
MIE, etc.), educators, advisors and others to larger survey would provide greater evidence
create unique learning opportunities targeted and lend itself to quantitative analysis.
for millennials. Helping to bridge millennials’ A future survey of millennials could be
desire for impact with impact skills and supplemented with insights from a broader,
thought leadership could launch the next wave more diverse group of millennial investors. For
of innovation in impact. example interviews with:
Millennials have the appetite to influence their
families and are feeling push back from their • Millennials outside of North America
families in moving their assets into impact. and Europe; and
They want to collaborate with family members
and we are starting to see millennials and • Millennials whose source of wealth is
from business, commerce, sport
or entertainment

Millennials in Impact Investment Report 2016 56

Areas for further research that we believe better global citizen. Impact investing offers
would be of interest include: a powerful way to transform finance and
ultimately transform markets for the benefit of
1. What is the purpose of the funds that people and planet. More and more millennials
millennials are stewarding and how does cannot imagine investing without impact
this affect their impact investment considerations.
decisions? Are they discretionary? Do Millennials are asking for help. They want
they depend on this capital for their to invest in impact along side their families.
livelihood? What risk, returns and liquidity They value the perspective of investment
timing are they targeting? professionals. And they have heavily invested
in educating themselves as best they can,
2. Impact investor education for millennials; given the lack of concrete impact investing
what exists? What is working well? Where capacity building options.
are the shortcomings? Family offices, advisors, communities of
practice, academia, foundations and employers
3. Millennials working in impact investing; have the opportunity to step up and provide
What are the trends? What implications meaningful support across the nascent
does this have for the growth and eco-system of impact services and thought
development of the sector? leadership. If we build it, millennials will come.
In fact, they are already here – waiting for us. •
Next Steps
Business as usual is no longer an option for
a significant number of millennials. They are
willing to stress test all aspects of their lives
in order to redefine what it means to be a

Millennials in Impact Investment Report 2016 57

VII. Demystifying Impact Investing:
the Toniic Impact Investing Glossary

Jargon Definition

asset classes Group of securities that behave in a similar way in
the marketplace, have similar characteristics (risk,
return, liquidity), and are regulated by the same laws.
The three main asset classes are equities, fixed-income
and cash equivalents.

Benefit Corporations (B-Corp) A benefit corporation is a legal form used by long term
mission and value creating organizations. This form
provides flexibility when evaluating potential sale and
liquidity options, while offering a solid way of protecting
mission through capital raises and leadership changes.

cash & equivalents Being one of the three main asset classes along with
stocks and bonds, cash equivalents are investment
securities that have high credit, are short term and are
highly liquid. These investment securities have low risk
and low return profile.

CDFI Community development financial institutions (CDFIs) are
private financial institutions that are 100% dedicated to
delivering responsible, affordable lending to help low-
income, low-wealth, and other disadvantaged people
and communities join the economic mainstream.

Charitable Reminder Trust (CRT) A Charitable Reminder Trust is a tax-exempt trust
designed to reduce the taxable income of individuals,
dispersing income to the beneficiaries for certain period
and then donating the trust’s remainder to a charity.
(A term predominantly used in the U.S.)

convertible debt Debt investment that after a specific period may be
exchanged for the common stock in a certain portion.

debt investment Debt investments are loans given to finance property or
projects. The borrower is expected to pay back the loan,
typically with interest.

demand dividend Flexible investment vehicle, where the terms of the
investment are adjusted to meet both the need of
the enterprise business model along with investor’s
investment objectives.

Millennials in Impact Investment Report 2016 58

Jargon Definition

divest / invest Divest: Process of selling an asset for either
financial or social goals.
Invest: Process of purchasing an asset with
the hope of generating income or appreciate
in the future.
The “Divest / Invest” Movement refers to the
divestment from fossil fuels and the investment
in to clean energy for all.

dividend A dividend is a distribution of a portion of a
company’s earnings, issued as cash payments,
shares of stock, or other property.

Donor Advised Fund (DAF) A Donor Advised Fund is a separately account
that is maintained and operated by a section 501(c)
(3) organization. The account is composed of
contributions made by individual donors. The
donors retain advisory privileges regarding to
where are the funds and investment distributed.

Double-Bottom-Line (DBL) Double-Bottom-Line refers to a framework that
measures entrepreneurial ventures with traditional
financial accounting metrics concurrently with
social return ones.

Environmental, Social, Governance (ESG) Set of standards used by impact investors to
screen investments with consideration of
Environmental, Social and Governance criteria.

equity investment Money invested in the ordinary shares of
a company.

Exchange Traded Fund (ETF) An Exchange Traded Fund is a marketable security
that keeps track of an index or a basket of assets
like an index fund.

Family Office (Asset Structure) Family offices are private wealth management
advisory firms that serve high net worth investors.
Family offices are different from traditional wealth
management firms in that they offer a total
outsourced solution to managing the financial and
investment side of an affluent individual or family.

Millennials in Impact Investment Report 2016 59

Jargon Definition

fixed income A type of investing in which real return rates or periodic
income is received at predictable intervals and levels,
i.e. a ‘fixed’ amount of ‘income’ is received

Foundation (Asset Structure) There are various kinds of foundations. The foundation
referred to in this report is a private operating foundation
that manages philanthropic and investing activities.

hedge funds Alternative investments using pooled funding that may
use a number of different strategies to earn active returns
for each of their investors. They are usually aggressively
managed or make use of derivatives and leverage in both
domestic and international markets intended to generate
high returns.

Impact First (Impact Category) Emphasis on the optimization of social or environmental
needs (e.g., Program-Related Investment), which may
result in financial trade off.

impact investing Impact investing is the investing made into organizations
and funds with the purpose of generating social and
environmental impact while having a financial return.

Individual (Asset Structure) The “Individual” asset structure referred to in this report is
personal assets managed by the asset owner.

investment policy Document drafted between an investment manager
and a client outlining general rules for the manager.
This rules provide the general investment goals of a
client and states the strategies that the manager should
implement to reach these objectives.

investment strategy Action plan to guide the decisions of an investment,
considering its objectives, risks and future needs
for capital.

microfinance A type of banking service that is provided to unemployed
or individuals who would otherwise not have means to
access financial services. Microfinance institutions are often
referred to as MFIs.

Millennials For the purposes of this report, “Millennials” is the
generation of individuals born between 1975-2005.

Millennials in Impact Investment Report 2016 60

Jargon Definition

mutual fund A mutual fund is an investment vehicle that is made up
of a pool of funds contributed by different investors for
the purpose of investing in securities such as stocks,
bonds and similar assets.

Negative screening An approach to determine a potential investment
universe by certain negative characteristics –
e.g. no tobacco/no defense

Non-Impact (Impact Category) Emphasis on profit maximization without explicit and
intentional regard for social and/or environmental factors.

portfolio approach Investment approach to invest in a variety of asset
classes using risk & return characteristics to achieve
desired outcomes.

private equity Equity capital that is the one invested directly into private
companies or conduct buyouts of public companies that
result in a delisting of public equity.

Program-Related Investment (PRI) Program-Related Investments are made by foundations
to support charitable activities that involve the potential
return of capital within a certain time frame. PRIs
include financing methods commonly associated with
banks or other private investors. (A term predominantly
used in the U.S.)

public equity Equity traded on a public stock market

Responsible (Impact Category) Also known as Socially Responsible Investing (“SRI”)
or negative screening.

shares Shares are the units of ownership interest in a company
or financial asset.

social entrepreneurs Social entrepreneurs are business leaders who provide
business solutions to society’s most pressing needs.

Social Responsible Investment (SRI) The process of investing in companies considered
as socially conscious. These types of companies are often
engaged in social, environmental sustainability and clean
energy/technology implementation. SRI can be made in
individual companies or through socially responsible
mutual funds or exchange-traded fund.

Millennials in Impact Investment Report 2016 61

Jargon Definition

stock A stock is a type of financial instrument that indicates
ownership in a company and represents a claim on part
of the company’s assets and earnings.

Sustainable (Impact Category) Targeting investments best positioned to benefit from the
integration of ESG factors and broad-based macro trends

term sheet Non-binding agreement that sets the basic terms and
conditions for an investment.

Thematic (Impact Category) Focus on issue areas where social or environmental
needs offer commercial growth opportunities for
market rate return.

theory of change Statement that describes why and how you plan to achieve
a desired change using an “if (what should happen), then
(outcomes)” logic.

Triple-Bottom-Line (TBL) Triple-Bottom-Line refers to a framework that evaluates
the social, environmental and financial performance of
an organization or activity. These three dimensions are
commonly called the “three Ps”: People, Planet and Profits.

Trust (Asset Structure) An asset structure where a wealth holder gives a trustee
the right to hold title to property or assets for the benefit
of a third party.

UHNW or UNHI or HNW or HNI Ultra High Net Worth Individual. A person with investable
assets of at least US$50 million, excluding property
such as one’s primary residence, collectibles and
consumer durables.
High Net Worth Individual. Individual with investable
assets in excess of US$1 million, excluding property
such as one’s primary residence, collectibles and
consumer durables.

venture Start-up entity created with the intention of having
financial profits.

Millennials in Impact Investment Report 2016 62

XXxxntry, many Latin American countries present attractive investing opportunities due to their

Investing in Latin America

Market Overview
Although roughly 175 million people in Latin America are still living in poverty, the region has
experienced tremendous growth over the past five years and has seen improvements for even
the most vulnerable segments of the population. While the investing climates vary widely by
country, many Latin American countries present attractive investing opportunities due to their
comparatively favorable regulatory conditions.
Opportunities

• Favorable Regulatory Environment. Through the North American Free Trade Agreement and

other foreign investment treaties, many countries in the region—like Mexico and Colombia—
have attracted significant investment inflows and established clear regulations governing
foreign investments in local companies.

• Consumer Base. In countries like Mexico, 70% of the population lives above the poverty

line, earning between $2 to $8 a day. This earning level creates an excellent opportunity to
introduce market approaches to poverty reduction.

• Government Support. Investment projects in economically disadvantaged areas or areas

undergoing industrial redevelopment are usually eligible for regional aid, such as corporate
tax exemptions, low-cost or free industrial land sites, and financing from federal, state, and
municipal governments.

• Geography. Proximity to the US and small time-zone differences make it easier for investors to

visit and work more closely with entrepreneurs than in other regions.
Challenges

• Corruption. According to the Transparency International Corruption Perception Index, two-

thirds of the region’s 32 countries are ranked on the low end of the list placing them among
the most corrupt nations on the planet. Brazil and Mexico were highlighted in the 2012 report
as working on much needed reforms.

• Exchange Controls. Various exchange controls are imposed by countries in Latin America

and these are often accompanied by tax implications for the investor. Brazil, for instance,
requires registry in the Central Bank in order to make a capital investment. To avoid legal and
bureaucratic complications, many investors fund ventures through a feeder fund as opposed to
directly.

• Instability. The rules of law change frequently and unexpectedly in some countries in the

region, making investments riskier. Venezuela and Bolivia have suffered political upheaval

Millennials in Impact Investment Report 2016 63

and/or revolution. Argentina, and Brazil have stable governments, but dynamic currencies
or economic policies, which make compliance with all the norms and licenses especially
challenging in sectors such as health and the environment. Chile and Colombia have some of
the most stable investing environments; Chile boasts perhaps the best-developed VC scene in
Latin America.

• Liquidity. Few acquisition opportunities exist for selling smaller firms through third-party

sales, and the likelihood of an IPO is even lower. Therefore, alternative investment structures
should be considered that allow exits based on the firm’s cash flows. Given the limited exit
opportunities, investors in the region usually prefer to use debt as opposed to equity.

• Partnership Building. In the US and Western Europe, investors trust the rule of law and

the legal system, allowing partnerships and agreements to be completed quickly. In Latin
America, however, investors must rely on partners to navigate the local culture and business
environment as a strong regulatory framework does not always exist.

• Tax Laws. Due to the complexity of various tax regimes in the region—and a high-level of

noncompliance—it can be difficult to be competitive if your investment is not structured in a
tax-efficient fashion.
Resources

• Adobe Capital. An impact investment fund that provides a mix of financing and technical

assistance to promising, high-impact small and growing businesses (SGBs). The company
provides flexible financing solutions, from working capital loans to support day-to-day
operations, to equity-like investments to finance the purchase of long-term assets, company
expansions and/or acquisitions. http://www.adobecapital.org/

• Agora Partnerships. The accelerator program is the main activity, but Agora also acts as an

incubator, a venture fund, and a mentoring partner. Focused only in Latin America, Agora
targets companies with mature customer base and expected growth of 20% within 3 years.
http://agorapartnerships.org/index.php

• The Aspen Network of Development Entrepreneurs (ANDE). A global network of

organizations that invest money and expertise to propel entrepreneurship in emerging
markets. http://www.aspeninstitute.org/policy-work/aspen-network-development-
entrepreneurs

• Banco de Desarrollo de America Latina (CAF). A financial institution dedicated to the regional

development of Latin America. Focused on areas such as infra-structure, social development,
and environment, CAF offers loans and other types of financial and technical advisory. http://
www.caf.com/en

• Banorte. A bank from Mexico with a special focus on SMEs. http://www.banorte.com/portal/

pyme/home.web

• Endeavor. Endeavor helps high-impact entrepreneurs by providing a network of seasoned

business leaders, who provide mentorship, strategic advice, and inspiration. www.

Millennials in Impact Investment Report 2016 64

endeavor.org

• Fundacion Avina and Avina Americas. Both non-profit organizations, Fundación Avina

identifies tipping-point opportunities in the region, then shares these with Avina Americas in
an effort to build regional alliances. Fundación Avina employs its resources, local presence
in 13 countries, and relationships with thousands of allies to build shared strategies with the
potential for continent-wide impact. http://www.avina.net/esp/

• IGNIA. A venture capital firm based in Mexico that supports the founding and expansion of

high-growth social enterprises that serve the base of the socio-economic pyramid. http://www.
ignia.com.mx/bop/

• Inter-American Development Bank (IDB). The bank has formed partnerships with institutional

investors, wealthy individuals, foundations and companies to advance projects that generate
social and financial returns. As well as providing technical assistance, it has arrangements
to co-finance projects through equity investments, syndicated loans, and partial credit
guarantees. http://www.iadb.org/en/inter-american-development-bank,2837.html

• NESsT. A catalyst organization for social enterprises in emerging markets, providing

financial capital, training and mentoring, and access to markets for a high-impact
entrepreneurs. In Latin America, NESsT works in Argentina, Brazil, Chile, Ecuador and Peru.
http://www.nesst.org

• New Ventures. Founded in 1999 by the World Resource Institute, New Ventures operates

in three Latin American countries (Brazil, Colombia, and Mexico) providing business
development services to environmentally-focused SMEs. New Ventures prioritizes enterprises
that seek biodiversity conservation, energy efficiency, natural resource conservation (non-
water, non-energy, non-agriculture), pollution prevention and waste reduction, sustainable
energy, and water resource management. http://www.wri.org/project/new-ventures or http://
www.nvm.org.mx/

• Pipa. Brazilian accelerator focused on projects that generate shared value. Based in Rio de

Janeiro, the company offers capital and mentorship to entrepreneurs who want to make a
positive impact in the world. http://www.pipa.vc/

• Start-up Chile. A program from the Government of Chile to attract world-class early stage

entrepreneurs to start their business in Chile. http://startupchile.org/

• Toniic LatAm. Toniic is a global network of action-oriented impact investors. http://www.

toniic.com

• Vox Capital. A young venture capital fund in Brazil focused on business at early stages of

development, directed to low-income Brazilians and with profound positive social impact.
Their preferred areas are education, health and housing. http://www.voxcapital.com.br/

Millennials in Impact Investment Report 2016 65

Investing in Sub-Saharan Africa

Market Overview
Six of the world’s ten fastest-growing economies over the past decade were in sub-Saharan Africa,
and seven African countries are forecast to be among the 10 fastest growing economies in the
world between 2010-2015. Foreign direct investments in the region have grown at a compound
rate of 20% since 2007. However, the region still has the highest overall percentage of the
population living in poverty. Starting a business also remains difficult, especially in terms of capital
expenses. For example, the cost of all fees to start a business averages 67.3% of regional income
per capita—the highest of all regions measured. While the impact investing landscape is generally
strongest in South Africa and Eastern Africa, the entire region is in great need of capital support
and capacity-building for entrepreneurs.
We recommend the April 2013 Omidyar Network report: Accelerating Entrepreneurship in Africa,
which provides a detailed view of investment conditions in the region.
Opportunities

• Potential for impact. Although there are areas where significant impact investing

infrastructure has begun to take hold, most of the impact space is very under-developed,
meaning that experienced, hands-on investors can add real value. They can also encourage
other impact investors who have an appetite to invest in the region and don’t know how to
jump in.

• Culture of community investment. Similar to the classic foundation model of making as much

money as possible through business and then giving some away philanthropically, the culture
of profit feeding community philanthropy is strong; however the term “impact investing” is still
new for African investors.

• A wealth of natural resources. Africa boasts 10% of the world’s oil reserves, 40% of its gold

ore, 80% of its chromium and platinum reserves, and 60% of its uncultivated and arable land.
As development and political stability increase in the region, these resources will increasingly
become great opportunities for growth, investment, and positive impact.

• Hybrid structures and partnerships. Active investors strongly recommend working with local

organizations in partnership or with hybrid organizations. Some investors have found success
utilizing a partnership model as a four company approach: local for-profit, local non-profit,
Western for-profit, and Western non-profit. Liberty and Justice has a similar setup. Investors
should choose partners who are final decision-makers, as engaging with intermediaries can
often be a time sink rather than a value-add.
Challenges

• Cost of capital. The high cost of capital in Africa makes it difficult to find co-investors willing

to collaborate on deals offering less than 15% returns, whereas foundations utilizing program-
related investments in the United States are often satisfied with returns at 5% or lower.

Millennials in Impact Investment Report 2016 66

• Timeliness of doing business. Expect to spend time in transit (transportation break-downs,

poor road conditions) and time waiting for meetings. Investors should practice patience and
plan on scaling timetables for activities by at least 1.5 times.

• Foreign investment regulations. Regulations vary greatly by country, with some countries

actively encouraging foreign investment and others with more burdensome regulation.
Kenya, for example, has very few restrictions on foreign investment and has suspended the
capital gains tax for foreign investors. In South Africa, on the other hand, foreign investors
must receive special share certificate endorsements or they may encounter difficulties
withdrawing money over time. In some countries in Africa, governments may cap the
percentage a foreign investor can own of a local company.

• Finding entrepreneurs. Because “impact investing” is new, entrepreneurs may not define

themselves as such; South Africa has called this type of funding “charitable investment”. Also,
appetite for entrepreneurship may be low in some areas. For example, in South Africa, there is
little incentive for entrepreneurs to take the risk of investing their own money due to the lack
of tax benefits or loss write-off opportunities, especially in the face of other more attractive
grant and Black Economic Empowerment funding opportunities.

• Corruption. Nine of the twenty lowest ranked countries on the Corruption Perceptions Index

are in Africa, though investors interviewed feel that these challenges are surmountable.

• Investors’ comfort with ambiguity. Investors need to be comfortable with ambiguous market

norms. Be honest and realistic with your risk tolerance and with not knowing projected
financial returns. Focus on supporting the entrepreneurs’ mission. Entrepreneurs are often
pressed for time and staff to service investors’ questions; be respectful, especially when
considering relatively small investments.

• Lack of legal recourse. It should be assumed that recourse to legal contracts, if required,

does not lead to compensation for non-local investors. Most often the main incentive for the
entrepreneur to maintain compliance with your investment agreements will be maintaining
face rather than the threat of financial loss as a result of an action. Legal action should be used
only as a deterrent. The best security against requiring recourse to legal remedy is to work
with local co-investors.
Resources

• Accelerating Entrepreneurship in Africa, Omidyar Network report, April 2013. http://www.

omidyar.com/sites/default/files/file/ON%20Africa%20Report_April%202013_FInal.pdf.

• Accounting firm, Ghana. Virtual Point Associates. http://www.virtualpointassociates.com
• Africa Venture Capital Association (AVCA). – A VC industry body with members that are

predominantly funded by DFI’s and as such share many of the criteria of impact investors and a
good source of potential co-investors and deal sourcing. http://www.avca-africa.org

• Business Partners International. A specialist risk finance company for formal small and

medium enterprises (SMEs) in South Africa and selected African countries. http://www.

Millennials in Impact Investment Report 2016 67

businesspartners.co.za

• CIA World Factbook. A good entry point for investors looking at new countries. https://www.

cia.gov/library/publications/the-world-factbook/

• Co-Creation Hub. Lagos, Nigeria. A social innovation center dedicated to accelerating the

application of social capital and technology for economic prosperity.

• D. Capital Partners. Mission is to mobilize diverse financial resource to solve the world’s most

pressing problems, particularly in developing countries. http://dcapitalpartners.com/

• Emergent Asset Management. Emergent Asset Management is an alternative investment firm

offering hedge fund and private equity strategies. http://www.emergentasset.com

• Ernst & Young. 2013 “Getting Down to Business” report. An annual report by E&Y on Africa

that provides useful data on trends and developments across the continent.

• Impact Hub. A global network of people taking action towards a single purpose: impact.

http://www.impacthub.net

• Law Firms:
• Kenya – Hamilton Harrison & Mathews. http://www.hhm.co.ke
• Kaplan & Stratton Advocates. http://www.kaplanstratton.com/home.html
• Anjarwalla & Khanna. http://www.employmentlawalliance.com/firms/africalegalnetwork
• Uganda – Katende, Ssempebwa & Company. http://www.kats.co.ug
• Ghana – Bentsi-Enchill, Letsa & Ankomah. http://www.belonline.org
• Kimathi & Partners. http://www.kimathilegal.com
• Global – Blue Dot Advocates. http://www.bluedotlaw.com/

• The Liberia Philanthropy Secretariat (LPS). Encourages information sharing and collaboration

between the Government of Liberia, foundations, and the civil society while expanding
philanthropic support in Liberia. LPS makes it easier for foreigners to deploy capital in the
country. http://www.supportliberia.com

• NEXII. Nexii worked to support the development of market infrastructure for impact investing.

However, in 2012, they came to the conclusion that they were too early to market. Follow this
link to learn more about their business transition and the lessons learned.

• Open Capital Advisors (OCA), Kenya. Open Capital is a financial services and strategy

consulting firm based in Nairobi that supports high-impact businesses, investors, and
innovative solutions throughout East Africa. OCA’s work enables sustainable businesses
to grow and raise capital while helping markets to allocate capital efficiently. http://
opencapitaladvisors.com

• South African Social Investment Exchange (SASIX). South Africa’s first online social

investment stock exchange is a place where anybody can invest in social development
projects. http://www.sasix.co.za

Millennials in Impact Investment Report 2016 68

• Toniic Africa. Toniic is a global network of action-oriented impact investors. http://www.

toniic.com

• Venture Capital 4 Africa (VC4A) – The leading online platform that links African entrepreneurs

with investors. https://vc4africa.biz

Investing in the United States

Market Overview
While the term “impact investing” was coined in Bellagio, Italy in 2007, the practice in the US
benefits from over half a century of investment in market-based social change strategies. Despite
some ongoing challenges, this makes the US one of the most mature of the early-stage impact
investing regional markets.
The entrepreneurial approaches that began with the Community Development movement and
Community Development Financial Institutions (CDFis) are now being applied beyond poverty
alleviation to a much broader set of social and environmental challenges. Today, a diverse group of
American institutions, including banks, the government, public companies, consulting firms, funds,
universities, networks and accelerators are driving the social enterprise movement both in the US
and globally.
Opportunities

• Practitioner networks driving change. Voluntary associations and networks of practitioners

have been at the cutting edge of impact entrepreneurship and impact investing, developing
practices for over 25 years and working to influence institutional norms. One of these, the
network of B Corporations, has been successful at driving policy change as well – as of August
2013 they have helped pass legislation in over 20 states allowing companies to incorporate
themselves as “Benefit Corporations,” a new class of corporation that is required to create
material positive impact on society and the environment.

• Active industry associations for a diverse set of impact goals. There have been waves of

activity across a number of industries, beginning with community and economic development,
and expanding to Lifestyles of Health and Sustainability (LOHAS, such as organic foods and
sustainable consumer products), media, cleantech, renewable energy and energy efficiency,
health, education, and agriculture.

• Educational institutions supporting the trend toward values-driven investing. Driven largely

by the demand by students and the new entrepreneurial wealth appearing in the early 2000’s,
nearly every top MBA program in the US has built programs to introduce its students to the
study and practice of corporate social responsibility, social entrepreneurship, and increasingly,
impact investing.

• Rapidly maturing infrastructures. Through the different fields of philanthropy, intermediary

organizations that support emerging investors, impact investing funds, more sophisticated
impact measurement tools, and platforms for individual investors, the US impact investing

Millennials in Impact Investment Report 2016 69

community is rapidly organizing to provide increasingly sophisticated support, tools, and
capital of all kinds.
Challenges

• Investment readiness of impact enterprises. While there is significant growth in impact

enterprises emerging from universities, fellowship and award programs, and accelerators,
investors report that many of these are not investment-ready. Many entrepreneurial support
organizations are working on the ground to identify and better-prepare companies that are
indeed ready for investment. Investor-focused institutions like Toniic and Investors’ Circle can
then work to select those most ready for investor engagement and serve them up to investors.

• Relation of target population to growth. A recent report on US impact enterprises11 found

a positive correlation between impact commitment and growth trajectory across industries,
unless the company was focusing on underserved populations. These companies have a much
slower rate of growth. Investors with interest in supporting underserved populations should
adjust their return expectations and structure their investments accordingly.

• Marketplace gaps due to varying maturities within different industry sectors. While there

are a lot of investors joining the impact space and the market is maturing, there are still many
industries and impact areas where capital sources are quite difficult to locate, especially at
early stages.12 Early-stage investors in consumer products, cleantech, health, and organic food,
for example, will generally have an easier time locating like-minded co-investors in the US than
those in sustainable agriculture, media or education. Incentives for later stage investors are
generally limited to community development and other areas supported by policy carrots,
or investments where market-rate returns have been historically proven. Thus, there is still an
important role for the early-stage impact investor to help support a broad range of impact
enterprise impacts and industries.
Government Programs

• National Impact Initiative (NII). Launched in 2013 at the G8 Social Impact Investing Forum in

London, the NII expands funding for impact investing across various government agencies.
http://blog.usaid.gov/tag/national-impact-initiative/

• Development Innovation Ventures (DIV) at USAID. DIV holds quarterly grant competition

for innovative ideas and invests in early stage social ventures using a tiered-funding model,
investing small amounts in relatively unproven concepts and subsequently funding only those
that prove they can work. http://www.usaid.gov/div

• Overseas Private Investment Corporation (OPIC). OPIC is the US government’s development

finance institution. In 2012, it committed $333 million to impact investing around the world in
sectors such as healthcare, education, renewable resources, and water. http://www.opic.gov/

• US Small Business Administration (SBA). The SBA runs a $1 billion Impact Investment Fund

and a $1 billion Early Stage Fund, both launched through its Small Business Investment
Company (SBIC) Program. http://www.sba.gov/category/lender-navigation/sba-loan-programs/
sbic-program/general-information/key-initiatives

Millennials in Impact Investment Report 2016 70

Practitioner Networks

• Aspen Network for Development Entrepreneurs (ANDE). A global network of 175+

organizations that works to propel entrepreneurship in emerging markets. http://www.
aspeninstitute.org/policy-work/aspen-network-development-entrepreneurs

• B Corporations (B Corps). B Corps are certified by the nonprofit B Lab to meet rigorous

standards of social and environmental performance, accountability, and transparency. The B
Corp community presently encompasses more than 796 Certified B Corps from 27 countries
and 60 industries. http://www.bcorporation.net/

• Business for Social Responsibility (BSR). BSR works with a global network of over 250

members companies, developing sustainable business strategies and solutions through
consulting, research, and cross-sector collaboration. http://www.bsr.org/

• The Global Impact Investing Network (GIIN): A nonprofit organization dedicated to

increasing the scale and effectiveness of impact investing, the GIIN addresses systemic
barriers to effective impact investing by building critical infrastructure and developing
activities, education, and research that attract more investment capital to poverty alleviation
and environmental solutions. http://thegiin.org

• Impact Hub. A global network of people taking action towards a single purpose: impact.

http://www.impacthub.net

• Investors’ Circle (IC). Founded in 1992, IC is today the largest early-stage impact investing

network in the US. Together with angels, venture capitalists, foundations and family offices,
IC has propelled $172 million plus $4 billion in follow on investments in 271 enterprises
dedicated to improving the environment, education, health and community. http://www.
investorscircle.net/

• Social Venture Network (SVN). Founded in 1987, today SVN is a highly influential network of

business leaders and social entrepreneurs. It also helped incubate other networks such as Net
Impact, Business for Social Responsibility (BSR), Business Alliance for Local Living Economies
(BALLE), B Lab, and American Sustainable Business Council (ASBC). http://svn.org/

• Toniic. A global impact investor network and platform based in San Francisco whose global

members promote a sustainable economy by investing in entrepreneurs, enterprises, and
funds that seek to change the world for the better. http://www.toniic.com/

Industry Associations

• CleanTech Group. Cleantech Group’s research, events and advisory services accelerate

market adoption, stimulate demand, and remove barriers to cleantech innovation. http://www.
cleantech.com/about-cleantech-group/

• Community Development Venture Capital Alliance (CDVCA). CDVCA is the network for

the field of community development venture capital investing. It promotes the field by

Millennials in Impact Investment Report 2016 71

combining advisory, education, communications, and best-practice dissemination through
conferences and workshop. CDVCA also runs its own investment vehicle, the Central Fund.
http://cdvca.org/

• Lifestyles of Health and Sustainability (LOHAS). LOHAS provides business-focused

resources—including education, news, and B2B gatherings—for companies growing the
LOHAS market, an estimated $290 billion US market for goods and services focused on health,
the environment, social justice, personal development and sustainable living. http://www.
lohas.com/
Funds, Foundations and Foundation networks

• GIIN ImpactBase. http://www.impactbase.org
• ImpactAssets50. http://www.impactassets.org/impactassets-50
• F. B. Heron Foundation. http://www.fbheron.org/
• KL Felicitas Foundation. http://klfelicitasfoundation.org/
• Omidyar Network. http://www.omidyar.com/
• Rockefeller Foundation, Impact Investing. http://www.rockefellerfoundation.org/our-work/

current-work/impact-investing

• W. K. Kellogg Foundation’s Mission Driven Investing. http://mdi.wkkf.org
• Mission Investor’s Exchange. https://www.missioninvestors.org/
• Social Impact Exchange. http://www.socialimpactexchange.org/

Donor-Advised Funds

• Arabella Advisors. http://www.arabellaadvisors.com/
• ImpactAssets. http://www.impactassets.org/
• RSF Social Finance. http://rsfsocialfinance.org/
• Tides. http://www.tides.org/

Fellowships, Accelerators and Incubators

• Ashoka. https://www.ashoka.org/
• Echoing Green. http://www.echoinggreen.org/
• Fledge. http://fledge.co/

Millennials in Impact Investment Report 2016 72

• The Hub. http://bayarea.the-hub.net/#
• Santa Clara Global Social Benefit Incubator. http://www.scu.edu/socialbenefit/

entrepreneurship/gsbi/

• Social Entrepreneurship Accelerator at Duke (SEAD) http://dukesead.org

• Unreasonable Institute. http://unreasonableinstitute.org/

Educational and Research Programs

• Ashoka U. Ashoka U catalyzes social From protoype to Series A. Eleos first
learned about Sanergy in a Toniic
innovation in higher education through meeting in early 2011, when Sean Foote
a global network of entrepreneurial put the deal on the Gust platform. At
students, faculty and community leaders. the time, the co-founders were finishing
http://ashokau.org/ up business school at MIT, and had two
test toilets in use in the Nairobi slums.
• Net Impact. Net Impact is a community While the consumer-facing sanitation
side of the business plan was well
of more than 40,000 students and developed, the conversion of waste to
professional leaders creating positive organic fertilizer was less developed.
social and environmental change in In June 2011 Eleos invested an initial
the workplace and the world. https:// $20,000 to hire an agro-chemist to
netimpact.org/ run tests to prove that Sanergy could
produce fertilizer at a price point
• Columbia Business School, Social and with quality characteristics that
the Kenyan market would adopt.
Enterprise Program. http://www8.gsb. The results were positive, and so in
columbia.edu/socialenterprise/home February 2012 Eleos created an LLC to
aggregate $410,000 in convertible debt
• Duke University, The Fuqua School of to fund a 60 toilet pilot program. This
LLC included several Toniic members.
Business, CASE and CASE i3 Initiative on Eleos took a board seat to further
Impact Investing. http://caseatduke.org assist the company’s growth. The pilot
and http://wwwcasei3.org exceeded expectations, and in March
2013 Eleos led a $1.25 million Series
• Harvard University, Initiative for A equity round. Eleos converted its
convertible debt, and put together
Responsible Investment and Social another LLC to invest $425,000 in
Enterprise. http://hausercenter.org/iri/ and the Series A round. Several Toniic
http://www.hbs.edu/socialenterprise/ members, Acumen Fund, and Spring
Hill Equity Partners also participated
• Insight at Pacific Community Ventures. in the Series A round. Acumen and
Spring Hill Equity Partners are also now
http://www.pacificcommunityventures.org/ participating at the board level.
research/

• GIIN’s research database. http://www.

thegiin.org/cgi-bin/iowa/resources/links/
index.html

• Santa Clara, Center for Science,

Technology and Society. http://www.scu.

Millennials in Impact Investment Report 2016 73

edu/socialbenefit/

• Stanford Graduate School of Business, Center for Social Innovation. http://csi.gsb.stanford.edu

Impact Metrics

• B Lab. A nonprofit organization that certifies B Corporations, a new type of corporation

that uses the power of business to solve social and environmental problems. http://www.
bcorporation.net

• CARS. A CDFI assessment and ratings system, providing a third-party assessment of impact

and financial performance. http://www.carsratingsystem.net

• Global Impact Investing Rating System. Assesses the social and environmental impact (but

not the financial performance) of companies and funds using a ratings approach analogous to
Morningstar investment rankings or S&P credit risk ratings. http://giirs.org

• Impact Reporting and Investment Standards (IRIS). An initiative of the GIIN, IRIS is a set

of metrics that can be used to describe an organization’s social, environmental and financial
performance. http://iris.thegiin.org

• MIX Market.
Provides access to financial and social performance information covering

approximately 2,000 MFIs around the world. http://www.mixmarket.org

• Progress out of Poverty Index. A tool for pro-poor organizations to estimate and track the

poverty rates of those they serve. http://progressoutofpoverty.org

• PULSE/App X. Web-based software managed by App-X helping organizations track and

benchmark financial, operational, environmental, and social data to better demonstrate
impact. http://www.app-x.com/pulse
Information Services

• Impact Driven. A start-up impact information service “building a curated community of

impact”. http://impactdriven.co

Millennials in Impact Investment Report 2016 74

IX. Education and Events

Category Name Location Website Description
Education Case i3 Durham, http://sites.duke. CASE i3’s mission is to establish a
NC, US edu/casei3 rich set of resources and activities
Education Chicago for MBA students, entrepreneurs, in-
Booth Chicago, IL, https://chi- vestors, funders, academics and pol-
Impact US cagoboothsei. icymakers to explore and support
Investing New York, sched.org/ the field of Impact Investing over its
Seminar NY, US event/993d2dbff- critical period of development over
cd58ff0e9df- the next 5-10 years. This is the first
Education Columbia Online 897e1247cdb1 comprehensive global program at a
Business http://www. top 10 business school in the US to
School columbiaimpact- blend academic rigor with practical
investing.org/ knowledge on the emerging field of
Education Coursera Impact Investing across three main
https://www. audiences: MBA students, academ-
coursera.org/ ics, and professional investors and
learn/philanthro- practitioners.
pist/lecture/ This unique seminar will provide
W8T81/social-im- students with a framework to under-
pact-investing stand impact investing and the skills
to source, evaluate, and measure
opportunities in the space.

CI3’s mission is to inspire and pre-
pare Columbia University’s graduate
students for leadership and profes-
sional roles in impact investing and
social entrepreneurship. CI3 organiz-
es semester long consulting projects
with impact investors and social
entrepreneurs in which selected stu-
dents acquire experience in work-
ing with and consulting for real-life
actors in the social impact arena. CI3
additionally hosts a variety of career
panels and speakers throughout the
year to engage the student body
with professionals in the field for
an integral learning experience and
professional development.
A free Stanford sponsored lecture
about social impact investing as
part of a larger Philanthropy online
course

Millennials in Impact Investment Report 2016 75

Education Duke Fuqua Durham, http://sites.duke. The Duke MBA Program course
Education MBA NC, US edu/casei3/ catalog includes impact investing
Education about-case-i3/ studies. Impact investing is intro-
Emory Atlanta, case-i3-by-the- duced to all MBA candidates.
Education Goizueta GA, US numbers/ Emory Goizueta Business School
Education Business US http://goizueta. course catalog includes impact
Education School emory.edu/ investing studies.
Frontier faculty/socialen-
Market terprise/courses/ The Frontier Market Scouts training
Scouts index.html and fellowship program has trained
http://www. more than 300 professionals and
miis.edu/aca- served more than 100 different
demics/short/ social enterprises in 20 different
frontier-mar- countries around the world since
ket-scouts its inception. FMS received a 2013
Cordes Innovation Award from
GRM Bangkok, http://www. AshokaU and has now become
Internation- Thailand grminternation- the flagship program of the newly
al - Intro- al.com/detail/ launched Center for Social Impact
duction Cambridge, an_introduction_ Learning at the Middlebury Institute
to Impact MA, US to_impact_in- of International Studies at Monterey
Investing São Paulo, vesting#sthash. (MIIS).
Brazil Dpr3Vm9i.dpuf GRM International hosts a 2-day
Harvard http://www.hbs. training workshop in Bangkok, Thai-
Business edu/ land exploring the subject of impact
School investing at an introductory level
Impact http://www. for both development and private
Investing impactinvesting. sector professionals.
Latin Amer- com.br The Harvard MBA Program course
ica catalog includes impact investing
studies.
The IILA Platform provides a neu-
tral, non-profit oriented platform of
research that goes beyond academic
circles and that intends to act as
catalyst in order to drive Impact In-
vesting from margin to mainstream.

Millennials in Impact Investment Report 2016 76

Education Impact Cambridge, http://www. An annual program organized by the
Education Investing MA, US swinburne.edu. Initiative for Responsible Investment
Education Strategy for Melbourne, au/study/course/ at the Center for Public Leader-
Education the Next Austrailia & Master-of-Social- ship, Harvard Kennedy School. The
Generation Malaysia Investment-and- program theme is to engage Next
Education Program Online Philanthropy-MA- Gen members of high net worth
Master Evanston, SIP/local families on impact investing through
of Social IL, US http://myim- research and capacity building.
Investment pact-academy. The Master in Social Investment &
and Philan- Oxford, En- com/ Philanthropy program provides a
thropy - gland, UK http://www. sound theoretical and practical foun-
Swinburne kellogg.north- dation for the successful practice
University western.edu/de- of social investment within social
My Impact partments/seek. enterprise.
Academy aspx
Northwest- Online courses about philanthropy
ern Kellogg http://www. and impact investing.
School of sbs.ox.ac.uk/
Manage- programmes/ex- Kellogg created the Social Enter-
ment - So- eced/iip prise program in 2005 to provide
cial Impact a rigorous, relevant experience for
students interested in the inter-
Oxford section between management and
Impact In- society across all organizations and
vesting Pro- industries. Today, Social Impact
gram - Said is focused on building leadership
Business skills and awareness to help Kellogg
School graduates be socially responsible
global leaders. Impact Investing is
offered as one of the courses in this
curriculum.
The Oxford Impact Investing Pro-
gramme provides a unique op-
portunity to develop a deep and
broad understanding of the sector.
We debate workable solutions to
complex endemic problems, discuss
innovative impact investments from
around the world, and develop im-
pact measurement tools. Our focus
is on developing the practical skills
essential to yield maximum social,
environmental, and financial results.

Millennials in Impact Investment Report 2016 77

Education Presidio San Francis- http://presidio. Presidio Graduate School educates
Graduate co, CA, US edu/academics/ and inspires a new generation of
Education School mba-sustain- skilled, visionary and enterprising
Education Stanford, able-manage- leaders to transform business and
Stanford CA, US ment/curriculum public policy and create a more just,
Education University Berkeley, prosperous and sustainable world.
The Haas CA, US http://explore- Through innovative MBA and MPA
Impact courses.stanford. and research programs, PGS acti-
Investing Boston, edu/ vates students and professionals
Network MA, US http://socialsec- across a range of disciplines, indus-
tor.haas.berkeley. tries and sectors to bridge the gap
The Social edu/programs/ between commerce and the com-
Enterprise haas-impact-in- mon good.
Institute - vesting-network. The Stanford MBA Program course
Northeast- html catalog includes impact investing
ern Univer- studies.
sity http://www. The Haas Impact Investing Network
northeastern. (HIIN) provides MBA students with
edu/sei/im- first-hand experience in impact
pact-investing/ investing. HIIN is part of an inter-
national network bringing together
socially minded MBA students from
top business engaged in the process
of impact investing. This program
is run by MBA Impact Investment
Network and Training (MIINT) in
partnership with Bridges Ventures,
an impact investing firm led by Brian
Trelstad, former Chief Investment
Officer of the Acumen Fund.
The Social Enterprise Institute
challenges its students to not only
study impact investing, an emergent
field within social entrepreneurship,
but to apply the strategy to global
poverty in: Social Impact Invest-
ing – Connecting Compassion and
Capital, Impact Investing and Social
Finance, and Advanced Topics in So-
cial Entrepreneurship in Developing
Countries.

Millennials in Impact Investment Report 2016 78

Education Toniic Im- Santa Clara, http://www. ImpactU is a local and global impact
Education pactU CA, US & toniic.com/about/ investor-led educational program
Education University Global impactu-im- incubated at Santa Clara University.
of Cape- Capetown, pact-investor-ed- Designed as a dynamic framework,
Education town Grad- South Af- ucation/ course material is delivered in a
uate School rica http://www. tiered learning format: A 3-day The
of Business Philadel- gsb.uct.ac.za/e. Essential Impact Investor Practicum
University phia, PA, asp?c=864 and a 1 to 3-day Impact Professional
of Penn- US https://socialim- Essential Series.
sylvania pact.wharton. Impact Investing in Africa is a brand
- Wharton Salt Lake upenn.edu/pro- new short course at UCT’s GSB. In
MBA City, UT, US grams/impact-in- this course, wealth managers, con-
University vesting/ sultants, funders, lawyers and other
of Utah financial intermediaries will gain an
- Eccles http://www.uven- understanding of the rapidly emerg-
School of turefund.com/uif ing field of impact investing and its
Business - ecosystem globally, with a specific
University focus on Africa.
Impact Wharton’s strong history with
Fund financial research and the financial
services industry provides a unique
opportunity to examine impact
investing. This multifaceted program
advances the science of impact
investing by training students—the
next generation of investors—to
combine financial expertise with an
understanding of social problems,
change strategies, and impact eval-
uation.
University Impact Fund (UIF), a
University Venture Fund affiliate,
was launched in May 2010 in order
to establish the benchmark educa-
tional program for impact investing
and social entrepreneurship. Lever-
aging UVF’s proven student training
and investment model, UIF includes
social enterprise training and ex-
pertise to provide value-added due
diligence to its clients and will raise
a fund to co-invest alongside lead-
ing social venture capital and impact
investing firms.

Millennials in Impact Investment Report 2016 79

Education University Salt Lake http://sgiicenter. The mission and purposes of the
Education of Utah - City, UT, US com/ James Lee Sorenson Global Impact
Education Sorenson Investing Center (SGII Center) are to
Center accelerate and advance the under-
standing and application of prin-
Unreason- Global http://stealth.un- ciples of free enterprise to create
able Funder reasonableinsti- scalable and sustainable, global soci-
Boot Camp tute.org/funder- etal change. SGII’s Student Associ-
boot-camp/ ates collaborate with leading social
venture funds, banks, foundations,
Yale Man- New Haven, http://som.yale. consulting firms and social entre-
agement CT, US edu/faculty-re- preneurs to identify, fund, and grow
School search/our-cen- businesses that have a social impact.
ters-initiatives/ Funder Boot Camps are single-day
program-entre- events designed to give those with
preneurship/cur- little or experience in investing in
riculum international social or environmental
companies (i.e. the type of compa-
nies Unreasonable Institute sup-
ports) a chance to learn what it takes
and what goes into making direct
investment into such businesses. We
bring in seasoned funders (angels,
foundation leaders, fund managers)
to teach you what it takes and give
you tools to make it easier.
The Yale Management Programs
course catalog includes impact in-
vesting studies such as a course that
explores the current role of impact
investing in developed economies,
with particular focus on the United
States. The course will covers impact
investing across multiple asset class-
es with a focus on venture capital
impact investing. The creation and
measurement of social impact, as
well as the limited partner perspec-
tive are also explored. Assignments
are created to mimic the real-world
tasks and challenges in impact in-
vesting across multiple roles, debate
the issues those in the field grapple
with today and encourage students
to explore how the industry can be
expanded.

Millennials in Impact Investment Report 2016 80

Event Opportuni- Cancún, http://opportuni- Opportunity Collaboration annually
ty Collabo- Quintana tycollaboration. convenes 400 global leaders build-
Event ration Roo, Mex- net/ ing sustainable solutions to poverty.
Event ico http://impact- They engage social entrepreneurs,
Event PYM- Amster- days.org/ innovative nonprofit executives,
WYMIC Im- dam, Neth- http://socialcapi- grant-makers, impact investors,
pact Days erlands talmarkets.net/ corporate & academic field-leaders,
Social Capi- San Francis- http://sustain- and aligned media working around
tal Markets co, CA, US ableinvestingchal- the world to solve common chal-
(SOCAP) lenge.org/ lenges and spark new opportunities.
Sustainable Kowloon, Pymwymic Impact Days is Europe’s
Investing Hong Kong most creative and focused gathering
Competi- for impact investors. It is an annual
tion gathering in April to learn, share
deals, and welcome new investors to
impact.
Since 2008, SOCAP has created a
platform where social impact lead-
ers can connect and present their
ideas to a global audience. The an-
nual flagship event in San Francisco
is the largest conference for impact
investors and social entrepreneurs
and has drawn more than 10,000
people.
The Morgan Stanley Sustainable
Investing Challenge harnesses
the power of capital markets and
student creativity to create positive
impact in a world of perpetual re-
source scarcity and continued pop-
ulation growth. A pitch competition
for graduate students, the Morgan
Stanley Sustainable Investing Chal-
lenge focuses on developing insti-
tutional-quality investment vehicles
that seek positive environmental or
social impact and competitive finan-
cial returns.

Millennials in Impact Investment Report 2016 81

Event Unreason- Boulder, http://stealth. At Unreasonable Investor Days we
Event able Inves- CO, US & unreasonablein- unite Unreasonable Ventures that
tor Days Global stitute.org/inves- are tackling major social and en-
tor-days/ vironmental problems around the
MBA Philadel- http://www.the- world with investors, angels, founda-
Impact phia, PA, miint.org/ tions. The goal? To mobilize capital
Investing US to create massive global impact. It’s
Network not about pitches. It’s about action.
& Training The MBA Impact Investing Network
(MIINT) & Training (MIINT) is an experien-
tial lab designed to give students
at business and graduate schools a
hands-on education in impact invest-
ing. MIINT culminates in a compe-
tition where teams present early
stage investment recommendations
to the judgingcommittee composed
of industry leaders for a potential
investment of up to $50,000.

Millennials in Impact Investment Report 2016 82

Appendix

About Toniic • Toniic E-Guide to Early-Stage Impact

Toniic provides Investing: Impact investor sharing their
its members early-stage investment practices and
with a powerful information on vetted global impact
suite of investor investing resources, in partnership with
tools giving Duke University’s CASE i3 program.
easy access to
quality deals, process support, education, and • Redefining Impact: Case Studies in
a global expert peer group. Investing out of
their own accounts, Toniic members receive all Transformative Finance: Research on
the advantages of angel networks in traditional models of community-centered design,
investment sectors. Toniic also supports social governance and ownership, in partnership
entrepreneurs by providing quality feedback with Wilson Sonsini Goodrich & Rosati and
and support through interaction with our Confluence Philanthropy.
global network of investors and dealflow
partners, many of whom are experienced About CASE i3
entrepreneurs. For “less talk, more Toniic”,
follow us on Twitter. The mission of the CASE i3 Initiative on
The Toniic Institute is a 501 (c) 3 managing our Impact Investing is to establish a rich set
work on research and advocacy in the impact of resources and activities for students,
investment field. Toniic Institute’s mission entrepreneurs, investors, funders, academics
is to make relevant original knowledge and and policymakers to explore and support the
materials available for impact investors in field of Impact Investing over its critical period
order to broaden the field of impact investing of development over the next 5-10 years.
and deepen understanding amongst impact CASE i3 was commissioned by the Toniic
investors and social entrepreneurs. Institute to create this E-Guide, and CASE
Our members and board advocate for i3 conducted interviews with *investors,
impact investing by leveraging their skills entrepreneurs and intermediaries around the
and the resources of the network in their globe.
work in capacity building programs for CASE i3 is part of CASE (Center for the
entrepreneurs, impact investing workshops Advancement of Social Entrepreneurship), the
for investors, panel and keynote presentations award-winning research and education center
at conferences all over the globe, and active based at Duke University’s Fuqua School of
participation in policy discussions both at the Business. CASE promotes the entrepreneurial
local and global level. pursuit of social impact through the thoughtful
Research currently publicly available includes: adaptation of business expertise.
CASE i3 was the first comprehensive global
• Toniic E-Guide to Impact Measurement: program at a top global business school to

sharing practices of Toniic members
around impact measurement and providing
recommendations for assessing impact for
seed-stage investments.

Millennials in Impact Investment Report 2016 83

blend academic rigor with practical knowledge Miguel Duhalt, Adobe Capital
in the emerging field of Impact Investing. Daniel Etra, Rethink Autism
Our three strategies are to prepare students, Sean Foote, Labrador Ventures
support practitioners and develop a research John Fullerton, Capital Institute
community for the field. View our blog or Nina Gene, Jasmine Social Investments
recent videos. Follow us on Twitter for daily Miguel Granier, Invested Development
updates on the impact investing field. Or just Randy Goldstein, Energy Entrepreneur
view CASE i3 by the numbers. Taryn Goodman, RSF Social Finance
Rachel Hamburg, Researcher, Interviewer and
Acknowledgements Editor
Al Hammond, Healthpoint Services
A COLLABORATIVE PROJECT Chloe Holderness, Lex Mundi Pro Bono
This E-Guide was made possible by a grant Foundation
to the Toniic Institute from the Rockefeller Nikolaus Hutter, Toniic Managing Director for
Foundation. We especially thank Margot Europe
Brandenburg and Brinda Ganguly for their Shalaka Joshi, Toniic Managing Director for
support and guidance. South Asia
The Toniic Institute commissioned CASE i3 Oliver Karius, LGT Venture Philanthropy
to help create this E-Guide in early 2012. The Charly Kleissner, Toniic Co-Founder, KL
guide is a co-creation of Cathy Clark, Director Felicitas Foundation
of CASE i3, Lisa Kleissner, Co-Founder of John Kohler, Santa Clara University, Toniic Co-
Toniic, Morgan Simon, Co-Founder and CEO of Founder
Toniic from inception through May 2013, and Naveen Krishna, SMV Wheels
Stephanie Cohn Rupp, CEO of Toniic from June Jessamyn Lau, Peery Foundation
2013. Bonny Moellenbrock, Executive Director En Lee, formerly of Impact Investment
of Investors’ Circle, co-authored the regional Exchange Asia (IIX)
guide to investing in the US. Chid Liberty, Liberty & Justice
CONTENT AND EDITORIAL CONTRIBUTORS Andy Lower, formerly of Eleos Foundation
We want to thank the consultants, Toniic Josh Mailman, Sirius Change Investments
members, peer investors and intermediaries Kelly Michel, Potencia Ventures
around the globe who shared their research, Ian Meyer, Investment Consultant
wisdom and editorial expertise to bring this Bonny Meyer, Meyer Family Enterprises
document to fruition. Sean Moore, Acumen
Tony Berkley, W.K. Kellogg Foundation Rhett Moris, Endeavor
Suzanne Biegel, ClearlySo Bob Pattillo, Gray Ghost and First Light
Francois de Borchgrave, Kois Invest Ventures
Deborah Burand, University of Michigan Law Liesbet Peeters, D. Capital Partners
School Ben Powell, Agora Partnerships
Bruce Campbell, Blue Dot Advocates Tamzin Ractliffe, NEXII
Tony Carr, Halloran Philanthropies Jonathan Ruybalid, Blue Dot Advocates
David del Ser, Frogtek Tabreez Verjee, Serial Entrepreneur
Stuart Davidson, Sonen Capital Ritu Verma, Ankur Capital
Shawn Westcott, Impact Invest Scandinavia
Martin Whittaker, Sonen Capital
Ming Wong, GIINSENG
Eva Helena Yazhari, Beyond Capital Fund
At CASE i3 at Duke University, current and

Millennials in Impact Investment Report 2016 84

alumni MBA students worked on the guide Whitney Young
as part of the CASE i3 Fellowship, and we are Summer Interns: Masha Lisak, Ha Le
grateful for their help and hard work. Project Consultant: Beth Bafford
CASE i3 MBAs: Research Associate: Craig Moxley
Nicole Thompson, CASE i3 Fellow Photo and Graphic Credits:
Lila Cruikshank, CASE i3 Fellow Drake Socie, Drake Socie Design
Michelle Kirby, CASE i3 Fellow Lisa Kleissner, Photos on page 29, 33 and 38
Ha Le, CASE i3 Fellow Glenna Gordon, Liberty and Justice Photos
Ian Cain ISBN: 978-0-615-92451 •
Nicolas Monroy
Frederico Rizzo
Jessica Sawhney

Millennials in Impact Investment Report 2016 85