How do you measure, compare and aggregate the impact of organizations that aim to do good in the world? Measure, whether in a nonprofit project or for-profit social enterprise? Compare, using a universal measure to easily compare a rooftop of solar panels vs. an acre of re-planted forest vs. 500 vaccines vs. jobs vs. food vs. happiness? Aggregate, as in taking the sum of any or all impacts...
Why does one startup get picked over another for funding? From the entrepreneurs point of view, the answer to that question is often asked in frustration, as they are turned down by yet-another investor, or passed over by yet-another accelerator program. I feel for those entrepreneurs, as I spend most of my life on their side of the table. However, periodically I step over to the other side...
A startup died today. (A thousand other startups died today too, but just as we mourn our own family and friends more than strangers, so we mourn the startups we know more than the masses of others.) In mourning, those of us who knew this company started asking the question, “Why?” Why did this company die? On the surface, the reason is simple. The company ran out of money. No money, no payroll...
If you build it… they will come is an exceedingly common expectation of naïve, first-time entrepreneurs, who have yet to learn the “real world” difficulties of finding and selling to customers. Similarly, for funding first-time startups too often entrepreneurs expect a good idea and 80 page business plan is sufficient for an investor to invest. I call this erroneous expectation, If you think it…...
Nobel prizes have been awarded for the idea that the market is rational. Clearly, none of those economists or award judges have ever dealt with early-stage private equity, a.k.a. startup investing. That is the most obscenely irrational, inefficient market that I’ve ever dealt with. In that market, I wear multiple hats, and sit on all sides of the table. I’m a professional investor as at Fledge...
In the traditional world of early stage, Angel and VC investing, money is local. Studies show that over 80% of funding at Angel groups and Series A VCs goes to businesses in the same city/region as the funders. Over in the impact investing space, this rule is not true. Socially and environmentally conscious entrepreneurs are tackling global, planet-scale issues, often well outside the investment...
Here in the State of Washington, we lost our patience with the Federal government, it’s JOBS Act, and the lack of rules making progress at the SEC. In 2014, we passed the Washington Jobs Act, and starting November 1st, it is legal for Washington businesses to sell equity to any Washington residents. With some limits. Companies can raise up to $1 million Investors can invest the greater...
Here in the State of Washington, we lost our patience with the Federal government, it’s JOBS Act, and the lack of rules making progress at the SEC. In early 2014, we passed the Washington Jobs Act, and are moving forward toward legal equity crowdfunding for Washington companies and residents. The last step in that process are the rules from our State regulator, the Department of Financial...
Early stage impact investors face a market that has few acquisitions, fewer IPOs, and is filled with entrepreneurs who liken selling their companies to selling out. How can investors earn a reasonable (or market rate) return? This workshop will share the investment structure used by Fledge – the conscious-company accelerator – as a framework for discussing and sharing our ideas for investing in a...
Time again for the annual visit to San Francisco to attend and present at SOCAP, the social capital conference. Once again this year, I’ll be running a workshop, “Investing without Exits“, Wednesday, 2:20pm in the Fleet Room. Early stage impact investors face a market that has few acquisitions, fewer IPOs, and is filled with entrepreneurs who liken selling their companies to...
