Patient Capital: A New Asset Class

JACQUELINE NOVOGRATZ, ACUMEN FUND

In the Beginning

A New Breed of Businesses

1989 2001

Root Capital

SEAF

1994 1999

Aavishkar

AcumenFund E + Co

2010

1) Better Segmentation of the Marketplace

Monitor Institute

Number of Husk Power plants

14

8

33

51

33

843111

TotalAug 10Mar 10Sept 09Mar 09July 08Mar 08Aug 07

First two plants built

usingGyanesh’s

401k savings

First wave of prize moneyused to build

additional plant

provides initial financing

assists in bringingon board

Indian government

grants a capital subsidy

introduced to Husk at

Global VentureChallenge

Husk becomes viable investment option for Acumen

Acume leads

$1.2 m investment with DFJ

Andprovides additional financing

4

Multiple sources of capital are needed to build and accelerate new markets for the poor

2) Standard metrics that measure social as well as financial impact

Protect Social Goals at SCALE3) A deeper understanding of trade-offs and incentives to protect social goals and efficiencies as innovations scale

4) A powerful focus on policy

5) Talent

Getty Images

EPA/Peter Foley