This is the first webinar in the Impact Management Series. It provides an overview of how the impact of public equities is currently measured and managed. Through stories and case studies from Toniic community investors and advisors we explore an analysis of the pros and cons of existing methods. We also discuss products and services, from free online tools to more sophisticated bespoke and pay for measurement approaches implemented by advisors.
The T100 Project is a multi-year study of the portfolios of over 50 Toniic 100% Impact Network members. It reveals new insights about the various paths towards and feasibility of 100% impact investing. The T100 Project includes periodic reports, issue briefs, videos and podcasts, and the Toniic Diirectory, a peer-sourced directory of over 1,000 impact investments across all asset classes.
In this report, we share a number of examples of how venture philanthropists and impact investors are working together to fund early-stage impact enterprises around the world..
The Millennials & Impact Investment report goes straight to the source offering interviews and insights from millennials engaged in impact investing – from exploration through to execution.
Adam Bendell, former CEO of Strategic Discovery and CINO of FTI Consulting, named to lead Toniic Institute
SAN FRANCISCO – The Toniic Institute, a non-profit global organization of impact investors, announced today its selection of Adam S. Bendell as the next chief executive officer, commencing … Read more
This survey captures data and market perspectives from 146 impact investors. As in previous years, J.P. Morgan and GIIN focused on investing organizations from foundations to financial institutions and did not include individual investors. To ensure that survey participants have meaningful experience in making and managing impact investments, we set a criterion for participation such that only respondents that either manage USD 10mm or more in impact assets and/or have committed capital to at least five different impact transactions are included. The Global Impact Investing Network (GIIN) collected and collated the data, making the data set anonymous before sending to J.P. Morgan for analysis.
More than 400 institutions and 2,000 individuals representing $2.6 trillion in assets have committed to divest from fossil fuel companies. The divestment movement has grown exponentially since Climate Week last year, when Arabella Advisors reported that 181 institutions and 656 individuals representing over $50 billion in assets had committed to divest. At that time, divestment advocates pledged to triple these numbers by the December 2015 Paris UN climate negotiations. Three months before the negotiations, we have already witnessed a fifty-fold increase in the total assets of those committed to divest from fossil fuels!
Congratulations to SVN member Ellen Dorsey from Wallace Global Fund and everyone involved with the Divest-Invest movement! Click here to read about the Divest-Invest press conference with Ellen Dorsey, Rev. Lennox Yearwood, Tom Van Dyck, and Leonardo DiCaprio held this morning.
Join the fastest growing divestment movement in history, and help speed the transition to a clean energy economy. Sign the Divest-Invest personal pledge today.
I also hope you’ll join us for our 2015 Fall Conference in Baltimore, November 5-8, to learn more about Divest-Invest and get connected to an amazing community of change-makers, mission-driven entrepreneurs and impact investors.
Thank you for your support!
Social Venture Network
Cambridge Associates and the Global Impact Investing Network have collaborated to launch the Impact Investing Benchmark, the first comprehensive analysis of the financial performance of market rate private equity and venture capital impact investing funds. While the impact investing industry is in an early stage of development, it is poised for growth. One of the chief barriers to industry advancement remains a paucity of robust research on financial performance. Credible data on risk and return can help both existing and future impact investors better identify strategies that best suit their desired social, environmental, and financial criteria.
At launch, the Impact Investing Benchmark comprises 51 private investment funds. Funds in the benchmark pursue a range of social impact objectives, operate across geographies and sectors, and were launched in vintage years 1998 to 2010.
What if I told you that you’re more powerful than you think, and that you likely have an untapped powerful resource to create social impact?
India is looking to raise these low-cost and long-term funds to help finance its plan to quadruple its renewable energy production and to make it economically viable.
Foundation leaders see their main fiduciary responsibility as maximizing financial returns
Are you a technology startup solving a big and important problem? Are you embarking on a minimum viable product and planning to raise capital in the future? If so, you may be a great candidate for Better Ventures Startup School, based at Impact Hub Oakland and sponsored by Vodafone Foundation. The quarterly program consists of six interactive workshop sessions with a focus on Customer Development, Fundraising & Pitching, and networking with other entrepreneurs. Register here for our kickoff sessions on Thursday, November 20th and Thursday, December 4th. For more information or to apply for our next cohort beginning in January, visit better.vc/startupschool.
San Francisco, USA and Mumbai, India (August 18, 2014) – Toniic – a global network of over 120 action-oriented impact investors – is pleased to announce the financial support of philanthropic investment firm Omidyar Network. Toniic increases the velocity of money and services into impact investing to address global challenges. The Omidyar Network grant will be used to support Toniic’s global expansion and operations.
Led by Stephanie Cohn-Rupp and Shalaka Joshi, Toniic’s presence spans more than 21 countries, where its members have invested millions of dollars in support of social ventures. Toniic’s members commit to discover, evaluate, nurture, and invest in entrepreneurs, enterprises, and funds that promote a sustainable economy.
Omidyar Network’s funding comes through the firm’s impact investing initiative, which provides financial and human capital to strategically support organizations working to advance impact investing globally.
“The capacity building of impact investors is a crucial gap that needs to be addressed so that smarter capital can reach stronger enterprises more quickly. Toniic’s pioneering platform can help us unlock this capital by enabling investors to thrive in a community of learning and practice,” said, Paula Goldman, senior director of knowledge and advocacy at Omidyar Network. “We look forward to working with Toniic to continue to build and support the impact investing market worldwide.”
“We are delighted to be working with a forward-thinking, global group like Omidyar Network. Their support will channel more venture capital towards sustainable solutions to our world’s most pressing problems. Toniic is excited to play a leading role in PI supporting and democratizing impact investing globally,” said Shalaka Joshi, Toniic’s managing director for Asia-Pacific and chief investment officer.
Toniic is cross-sectoral and cross-country, and hosts over 50 social venture showcases every year. It is committed to democratizing impact investing across asset classes to eventually enable the entire investment spectrum – from crowdsourcing to ultra-high net worth individuals – to support social enterprises.
“This partnership will significantly strengthen our work as one of the largest global networks of high-impact investors. We are grateful for Omidyar Network’s support in enabling Toniic’s expansion, ” noted Toniic CEO Stephanie Cohn-Rupp.
by Liz Wilson
How can you align your intentions with actions?
This was one of the key questions that the Put Your Money Where Your Mouth (and Meaning) Is Community (PYMWYMIC) discussed at their annual Impact Days from 7-9th April in Amsterdam. The community of around 250 family foundation members, individual philanthropists, and investors gathered to assess how to link investment actions to meaningful impact.
Can you have 100 percent impact?
One hundred percent impact investment portfolios are possible, according to a keynote speaker Lisa Kleissner from the KL Felicitas Foundation. She challenged the PYMWYMIC participants to review, and if necessary change, the way in which they managed and spent their money, and that of the organisations they worked with. If 1 percent or 2 percent impact was achievable, then there should be no need to compromise on reaching a 100 percent impact goal.
A big barrier to achieving impact for Lisa and her husband had been convincing investment managers that ‘100 percent impact’ was a viable investment strategy. To that end, KL Felicitas Foundation had pioneered an open data approach to their investments, sharing financial information to have a positive demonstration effect. Working with partners Sonen Capital, the foundation published a ground-breaking report in 2013 detailing the financial performance of the foundation’s impact portfolio. A second report will be published in late 2014.
The Kleissners are not alone, and connect with other uncompromising impact investors through the action community for global impact investing Toniic and the ‘100 percent folks’. Their appetite for risk may seem significant, but Lisa is adamant that steady returns are there for all to access. The Kleissners unite ‘intention’ with strong and active ‘attention’ to their investments, and hope that their foundation’s work will provide a positive example to inspire others to act.
Agriculture for Impact?
In terms of impact investment opportunities, sustainable banker Triodos, and Dutch entrepreneurial development bank FMO led two separate sessions on the challenges, risks and solutions that are present in agribusiness deals. The overriding message was clear: this is a sector that calls for research, patience, and context-specific engagement. FMO summarised some of their primary considerations in assessing potential impacts:
What impact do you want to have?
Being clear on intention and objectives is vital. Impact is different in different contexts. For example, you achieve a very different outcome in different geographies and biophysical landscapes. The risks to manage in New Zealand will be very different to those in Tanzania.
What is the local view about impact?
Is your ambition for impact consistent with that of the local population? How do they perceive and value this intention? Community consultation and involvement is critical. For example, mechanisation might seem a no-brainer, but it might come at a cost of local jobs and traditional farming knowledge and techniques.
Have you considered the wider context?
Intention is not enough. Focusing on one specific issue, without considering the whole picture, might lead to obstacles and challenges later down the line. Agricultural impact investing can be messy and complicated. There may be trade-offs involved. You need to take a holistic approach. Quoting Abraham Maslow, a FMO colleague said,
If all you have is a hammer, then everything looks like a nail.
Impact investing in action
The Impact Days offered PYMWYMIC members the opportunity to put their learning and enthusiasm into action, by pledging support for one or more of 12 social entrepreneurs. Stichting DOEN offered €25,000 of top-up investment to catalyse pledges. The dynamism and energy of this group of entrepreneurs was a striking example of the explosion of high-quality and exciting investment opportunities that can contribute to 100 percent impact investing strategies.
PYMYWYMIC is celebrating 20 years of investing for impact, and the meeting paid tribute to the fact that they are part of a growing global movement of like-minded people who want to match their investing intentions with impact in a practical way. But as this space continues to expand, the pressure to understand impact is greater than ever. Quick polling of PYMWYMIC attendees showed that there was a wide variety of views as to which impacts are important for individuals and organisations.
As the impact investment community continues to enthusiastically grow, we need to ensure that equal, if not greater effort, goes into finding a common language to define impact. We must also research and develop more sophisticated tools to measure it. We can learn from and build on the frontier work that sector leaders such as PYMWYMIC and others have done. In many respects impact investing is just getting started; and the work to achieve impact at scale has only just begun.
Follow Liz Wilson on Twitter: www.twitter.com/LizWilsonUK
Impact investing in early-stage enterprises, although challenging, can be extremely rewarding and potentially provide both financial and social or environmental returns. It allows investors to improve the lives of the poor or vulnerable—locally and globally—while providing a return on capital. Yet few comprehensive guides exist for investors.
To help navigate this opportunity, the Toniic Institute—in collaboration with Duke University’s CASE i3—has released a first-of-its-kind online primer, the “E-Guide to Early-Stage Global Impact Investing.” Production of the guide was made possible by a grant from The Rockefeller Foundation.
“Our members view early-stage impact investing as a critical pillar in a holistic investment strategy. Yet no guides currently exist for new or potential investors,” said Stephanie Cohn Rupp, CEO of Toniic, a global network of impact investors in more than 20 countries. “This publication was written specifically to make it easier for interested investors to deploy their capital in support of early-stage social enterprises, by sharing active impact investor stories and consolidating the established resources and organizations which support this space.”
Sourced from the experiences of the Toniic Network’s member investors, this e-guide is a fundamental reference for anyone seeking to understand how to successfully invest at the early stage for both a financial return and social or environmental impact. The guide includes:
- A brief overview of impact investing;
- A detailed “7-Step Framework”, based on feedback from global impact investors starting with developing your own investment strategy;
- Four case studies that explore enterprise development and the types of capital and resources accessed; and
- Regional guides that illustrate legal and practical challenges in six major regions across the globe, including lessons learned and peer contact information.
Elizabeth Littlefield, CEO and President of the Overseas Private Investment Corporation (OPIC), on Toniic’s e-guide: “Toniic’s very valuable e-guide has the tools to start or enhance your investment strategy, whether your goal is to build value close to home or around the world.” Many experts in the sector of impact investing are endorsing the e-guide: Sir Ronald Cohen, Chairman of Big Society Capital, Jed Emerson of ImpactAssets, and the World Economic Forum to name only a few.
Co-author Cathy Clark, Director of CASE i3 at Duke University’s Fuqua School of Business, on early-stage impact investing: “Early-stage is a particularly important and rewarding time in the life of an enterprise for an investor to contribute both key capital and expertise. When a social enterprise is pre-revenue or just beginning to earn revenue, the groundwork is laid for the company’s customers, business model, impact thesis—or its theory of change about how it will create social value— and overall sustainability. This unique period holds tremendous potential for an investor to achieve impact.”
Zia Khan, Vice President, Initiatives and Strategy at The Rockefeller Foundation: “This e-guide from Toniic provides vital information to help those looking to invest in social enterprises that benefit the poor or vulnerable. The diverse case studies contained within this guide come from around the world, and demonstrate the power of layering grant and investment capital to propel the impact investing industry forward. These examples bring valuable perspective from those working on the frontline, and show impact investing in action.”
Toniic is a global network of action-oriented impact investors – both individuals and institutions. We increase the velocity of money and services into impact investing to address global challenges. Our members commit to discover, evaluate, nurture and invest in entrepreneurs, enterprises and funds that promote a just and sustainable economy. www.toniic.com
About Toniic Institute
The Toniic Institute is a 501(c)3 entity that manages Toniic’s work on research and advocacy in the impact investment field. Toniic Institute’s mission is to make relevant original knowledge and materials available for impact investors in order to broaden the field of impact investing and deepen understanding amongst impact investors and social entrepreneurs.
About The Rockefeller Foundation
The Rockefeller Foundation aims to achieve equitable growth by expanding opportunity for more people in more places worldwide, and to build resilience by helping them prepare for, withstand, and emerge stronger from acute shocks and chronic stresses. Throughout its 100 year history, The Rockefeller Foundation has enhanced the impact of innovative thinkers and actors working to change the world by providing the resources, networks, convening power, and technologies to move them from idea to impact. In today’s dynamic and interconnected world, The Rockefeller Foundation has a unique ability to address the emerging challenges facing humankind through innovation, intervention and influence in order to shape agendas and inform decision making. For more information, please visit http://www.rockefellerfoundation.org.
About Duke University’s Fuqua School of Business CASE i3
CASE i3’s mission is to establish a rich set of resources and activities for MBA students, entrepreneurs, investors, funders, academics and policymakers to explore and support the field of Impact Investing over its critical period of development over the next 5-10 years. CASE i3 is part of CASE (Center for the Advancement of Social Entrepreneurship), the award-winning research and education center based at Duke University’s Fuqua School of Business, which promotes the entrepreneurial pursuit of social impact through the thoughtful adaptation of business expertise.
Despite the challenges ahead, this report offers an optimistic outlook for the equity and debt crowdfunding sector, and about the possibilities for impact investors to operate successfully within this sector. In addition to broad compatibility in terms of geographic location and choice of financial instruments, the opportunity for investors is framed by certain key investment indicators which can be derived from the crowd: social proofing/proof of concept, product validation and market size. Of course, the risks and challenges
for investors and social entrepreneurs are significant. However, we expect these risks to be largely, although not entirely, mitigated through solid regulatory frameworks and a competitive environment for crowdfunding platforms enforcing principles of transparency, self-regulation and social and environmental responsibility.
In keeping with the principle of democratization of capital through crowdfunding, Toniic is pioneering the notion that equity or debt-based crowdfunding can be a tool to democratize impact investing.
By Lisa Kleissner for the Stanford Social Innovation Review Blog
We need more investors to share their impact performance data.
Stuck in traffic recently, I had time to check out the bumper sticker on the car ahead of me. Although faded by the sun, the message stood out: “The best way to predict the future is to create it.” My husband, Charly, and I have been creating our future as long as I can remember. We began the day we met—at Honolulu International Airport—back in 1974. Our efforts continue to this day with our personal wealth and through our philanthropy as the KL Felicitas Foundation.
Sonen Capital, a leading Social & Environmental impact investment firm, in collaboration with the KL Felicitas Foundation (KLF), announced the launch of the first-of-its-kind report detailing the financial performance of an impact investing portfolio. The report, titledEvolution of an Impact Portfolio: From Implementation to Resultsdemonstrates to investors that impact investments can compete with, and at times outperform, traditional asset allocation strategies while pursuing meaningful and measurable social and environmental impact results.
Evolution of an Impact Portfolio is written for asset owners, advisors, and other intermediaries interested in learning more about building diversified impact portfolios anchored in rigorous financial analysis and ongoing assessments of factors affecting macroeconomic conditions.
Impact Investing in West Africa, a report written by Dalberg Global Development Advisors and funded by the Rockefeller Foundation, is the first comprehensive analysis ever conducted on the impact investing industry in West Africa.
The report aims to: map the landscape of impact investing supply and demand in West Africa; identify the substantive challenges that hamper the growth of the industry and recommend solutions for overcoming them; and serve as a starting point for regional dialogue and local network development activities among impact investors.
Natural capitalists and financial capitalists don’t often come face to face, but theWorld Forum on Natural Capital will bring these two groups together. Of course, some are members of both communities. What will happen?
But let’s assume that the natural capitalists have a shared mission to accelerate corporate behavior change to create an economy that runs within environmental limits. What then are the key tools natural capitalists must acquire and deploy for success? I propose three above all – translation, pragmatism and stamina.
Forbes Asia interviewed Amy Bell, Head of Principal Investments for J.P. Morgan Social Finance, which provides financial services to the growing market for impact investments, meaning those investments made with intent to generate impact alongside a financial return.
She has overseen the group’s principal investment portfolio, which seeks to earn a reasonable rate of return alongside of achieving positive impact on low-income and excluded populations around the world. The deals completed to date include investments in MicroVest II, the LeapFrog Financial Inclusion Fund, IGNIA, the Bridges Social Entrepreneurs Fund, and the African Agricultural Capital Fund.