Good Capital

The new moral hunger

And the Blended Value Market

© 2007 all rights reserved

The hallway

Investment office

Foundation house, and investment tower

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

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

Market interventions need to do the things the public

safety net used to do.

background

Why a change is needed

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

bridge the gap

What Goodcap does

background

In traditional two pocket thinking, the money you invest flows back to you.

Giving thru philanthropy flows away, with no return.

background

philanthropy

investment

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

Rather than wondering What your money is doing

in your name, you have the confidence of knowing

--by creating accountability for good impact, and accountability for

financial performance

Keep an eye on your money and your impact

background

investment | philanthropy

New capitalwith new power to make change

timetime consumptionconsumption

investmentinvestment philanthropyphilanthropy

overview



new patterns of changetraditional behavior

Were part of a big change happening on a lot of levels.



time > patterns

Traditional• job security• company loyalty• corporate growth

New patterns• multiple employers• career loyalty• personal growth

© Graphic conceptualizations © Mark Beam, Collective Intelligence 2007



consumption > patterns

Mass consumption• commodification• created needs• believing ads

Conscious consumption• buying local• fair trade• deconstructing ads


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

consumptionconsumption

consumption > patterns of change © Graphic conceptualizations © Mark Beam, Collective Intelligence 2007

consumptionconsumption

consumption > patterns of change

energy awareness smart buying local food fair trade




investment > patterns

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

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




New patterns• third pocket• transparent intermediaries• recyclable giving

Traditional giving• second pocket• scarcity • costly fund raising

philanthropy > patterns © Graphic conceptualizations © Mark Beam, Collective Intelligence 2007

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

philanthropy > patterns of change

philanthropyphilanthropy


philanthropy > mission investments

Foundation investmentsFoundation investmentsstart aligning with missionstart aligning with mission


philanthropy > mission investments

Similar nearby categories Similar nearby categories also experiencing an upsurgealso experiencing an upsurge


Areas like Community investing,

Community investment venture capital

Now growing with at double-digit rates.

investment | philanthropy > patterns

Attention Curve:Blended Value investing

is growing



Attention Curve


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

consumption > 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.

Telling the story like the brain is wiredTruth in advertising

investment | philanthropy > social investing

social investing 1.0

social investing 2.0

Trapped in “Do just as well while doing good”

Responding to a new moral hunger, embracing

blended value

Old style social capitalIn the old style double bottom line view,

the social value hides behind a spreadsheet.

The new waveThe total blended value becomes clear.

as we acknowledge our desire for impact


© Aquillian Investments LLC, Aquillian.com

Tired: Efficient Frontier


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

Wired: New Efficient Frontier -A spectrum of players in the new space where risk and return are balanced with impact.


Investor mindset has changed


• Good Capital• Calvert • Danone

New, and established institutional funds are responding.


As clear headed as investing, as warm hearted as giving:

The Blended Value Asset Classclaims its space.


investment | philanthropy

New capital with new powerto make change

• Working Today• Evergreen Lodge• Real Benefits• The-hub.net• Pura Vida• Indigenous Designs• The Benefit Bank

good capital > where

Social enterprises ready to grow

accelerating the flow of capital to good

Graphic conceptualizations © Mark Beam, Collective Intelligence 2007 • Impact graphic © Aquillian Investments LLC

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