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FIP 74: Gender Smart Investing with Suzanne Biegel

On this episode we continue our podcast takeover series with Tamsin Jones of The Boardroom Africa. Her guest today is Suzanne Biegel of Catalyst at Large. Suzanne has more than 25 years’ of experience as an entrepreneur, investor, board member, and hands-on operational manager. Her consulting, speaking, facilitation, writing and field scanning is in gender lens investing, globally and spans work with a variety of institutional actors.

On this episode you’ll learn:

  • About what it means to practice smart investing for gender impact. Suzanne provides tactics and strategies to help us improve.
  • The importance of having a culture that is built to last. Suzanne has learned through experience that there is strength in diversity.
  • If you don’t have a management team that reflects who you are representing, you might be missing something. Inherent value in having different perspectives.
  • Suzanne tells us about the benefits of analyzing your business through a gender lens.
  • If you are designing products for women and girls, wouldn’t it make sense to have them involved in the design process?
  • Pay attention to ‘hidden influencers’ along the way. These might not be your customers, entrepreneurs, or end clients, but could be the controllers, HR staff or accountants in the company. Are they benefiting from the resources and support? Who is in your supply chain?
  • Is your company paying attention to women’s needs? Transportation? Child Care? Is there a safe way for women to get to and from work?
  • From a customer standpoint, how are you speaking to your women customers? Are you being respectful? Are you hitting stereotypes? Start by asking questions.
  • The data shows that once you get product market fit right for female customers, they will be more loyal. Once you secure a female customer, they tend to be more communicative about the product to others and in essence become an ambassador. They are more likely to recommend products and more likely to buy more.
  • Be purposeful in where you use your energy. There are a lot of people on the same journey as you. Find partners and work collaboratively where possible.
  • Start with a problem that you are really trying to resolve and go towards it relentlessly.
  • There are endless events and resources worldwide. People are realizing there is power in connectivity! Visit a few of Suzanne’s resources below…

Links to Resources:

Resources for Investors:

 

Connect with Suzanne:

  • @womeneffect
  • @zanne2
  • #genderlensinv

FIP 72: Funding 4/4 – Breaking Down Term Sheet Terms with Nina Gené of Jasmine Social Investments

Our final episode in our 2018 fundraising series features Nina Gené of Jasmine Social Investments. The goal of this episode is to provide entrepreneurs with insights to better prepare them for negotiations with potential funders or investors. Nina joined Jasmine in 2007 with the responsibility to identify prospective investments, support partner organisations and collaborate with a network of social investors. Jasmin Social Investments funds high-performing social ventures and outstanding social entrepreneurs who are solving a basic need of the very poor.

My key takeaways from this interview were:

  • Nina believes that Jasmine, who also invest in tech startups in New Zealand, are better venture capitalists because they are philanthropists. Learnings from the social side include how to do comprehensive due diligence, how to listen to other investors and leverage others’ due diligence, and how to give advice as generalists to organisations in their portfolio.
  • On their granting side, Jasmine takes one single measure of success and they ensure they know in detail the underlying economics of it. This type of thinking in the early days should help entrepreneurs decide whether to scale through equity or grants. And this is a big learning because entrepreneurs sometimes instead of deciding, they end up guided by investors and the lure of getting funded so they grow quicker. Therefore entrepreneurs need the confidence to only go after the funding they really want.
  • Entrepreneurs shouldn’t get caught up on getting the highest valuation they can get, because a deal is about alot more than the price. It’s about the opportunity to work with great people who are also very aligned to your mission. And if you delay, you risk running out of money, which is a poor negotiation position.
  • Seed rounds are normally done on a convertible basis these days, instead of straight equity, so you’re delaying the valuation discussion. Whether an investor requires a valuation or not is a personal thing. But if you choose not to do a valuation, you might need to informally put a price on the valuation, so you protect your seed round investors from the demands of the investors in the next round.
  • Another critical question to figure out is about raising the right amount of capital and getting the timing right. Entrepreneurs try to raise the minimum amount now so they can raise a larger amount later at a higher price. But then the entrepreneur could end up in permanent fundraising mode instead of making some key hires and iterating the model. Better to take the money now and set yourself up for a longer time.
  • Make sure you keep terms simple, because the next investor will lay the rights on top of yours, and you could wind up getting too complicated. Always ask yourself: “Am I doing something in this round that will prevent someone fantastic to come in on the next round?”
  • Smart clauses to include are anti-dilution rights, which ensures existing investors are always protected by a future down round. And giving them pro-rata rights, so you allow current investors to participate in future rounds so they can maintain their percentage ownership.
  • On allowing Board seats, small and effective Boards (five seats) are essential so giving investors a seat on the advisory Board might be better, otherwise you end up with a massive board which is unproductive.
    And access rights might be avoided because you might not want to share the full stack of your accounts for every investor always, but on the other hand, one email every six months should be the minimum for all investors.
  • Other than your own learning (see resources below), entrepreneurs should talk with their peers, talk about terms and their views.

Links to resources mentioned in this interview:

Connect with Jasmine:

 

FIP71: Fundraising 3/4 – Getting to First Close (Part 2) with Miora Randriambeloma of Chalkboard Education

Today we continue to hear from Miora Randriambeloma, co-founder of the ed-tech startup Chalkboard Education, which is changing the culture of African education through e-learning. Chalkboard Education aims to democratize learning by providing mobile learning solutions that work on all mobile devices – even without internet connection. On Part 2 of the interview, Miora tells us about the importance of having a strong network of critical friends and how long fundraising really takes.

On this episode you’ll learn:

  • How Miora herself had to learn about equity investments, such as how do shares work, what are shareholder agreements, what are the long-term implications of equity, as well as other important vocabulary.
  • The different types of investors in West Africa, including venture capital, foundations, crowdfunding (including churches and local platforms), incubators, and business plan competitions, and the fact that there is not always a match between the capital that organizations can provide and start-up needs.
  • What issues start-ups should take into account when considering equity for acceleration programs, and what the implications of giving up 10-15% of equity to an accelerator can mean over the long-term.
  • Why she and her co-founder decided to launch their company in Ghana because of the growing tech scene, but also how they used their international networks to gain valuable connections and advice.
  • That for Chalkboard Education, raising the Seed Series took 8 months, even though they knew after 3 months that they would get the capital — and that she wouldn’t recommend accelerating the process because it was important for them to really understand what they were getting into.
  • How having strong advisors and networks was key for good decision making during the company’s first raise.

 

Resources:

Connect with Miora:

FIP70: Fundraising 2/4 – Getting to First Close (Part 1) with Miora Randriambeloma of Chalkboard Education

Today we hear from Miora Randriambeloma, co-founder of the ed-tech startup Chalkboard Education, which is changing the culture of African education through e-learning. Chalkboard Education aims to democratize learning by providing mobile learning solutions that work on all mobile devices – even without internet connection. Miora tells us what it was like for her team to secure their first investment and how they went about choosing their investors.

On this episode you’ll learn:

  • The major shifts Miora has observed in education. She comes from a family of teachers and professors. When her parents were choosing a career, teachers and professors were a highly respected choice – now people are shying away from education. What has changed?
  • Miora tells us about her Liberal Arts background and how it has developed her critical thinking skills and ability to tell a good story. These skills were invaluable during her time as a Marketing Consultant and extremely important to her now.
  • Miora see Chalkboard Education as solving an accessibility issue – they are bringing the content of a university to individuals who may not otherwise be opportunity to pursue an education. Miora is simplifying a tech problem so that universities don’t have to invest in the tech and can focus on the content.
  • Chalkboard Education set themselves up at a university so they could get constant feedback from their users.They could work closely with those who would be using their product to troubleshoot problems in real time.
  • They tried selling the product before they had investors, figured if they could sell the product, that would be a good sign.
  • How did you know you were ready to raise money? Have a prototype or BETA.
  • Miora tells us about the value of competitions like Seed Stars. They learned a lot from other companies at these competitions. Everybody there was going through similar journeys and facing similar challenges. They created a Whatsapp group to formalize the community and get instant feedback from each other.
  • Entrepreneurship can be a lonely path! Find communities and join networks where opportunities arise.
  • Miora tells us what it means not “just look for money” but, to look for “the right money.”
    This type of investment usually comes with a mentorship relationship. Wait for investors who truly care about guiding you in a positive direction.
  • They needed support from someone who really understood their business. Miora didn’t want someone to just write a cheque and walk away.

 

Resources:

Connect with Miora:

FIP 69: Funding 1/4 – Are you ready to raise money? With Elizabeth West of iGravity

Today we hear from Elizabeth West of iGravity on the subject of investment readiness and the first steps in fundraising as the first episode in our fundraising series.

On this episode you’ll learn:

  • What it means to be “investment ready” and what are some preparation steps that enterprises should consider taking before engaging with investors, including taking time to build an advisory network and going one step further in terms of investigations or iterations on the product or business model. She notes that more than anything else, early-stage companies need constant advice and feedback from friends and critical friends.
  • For Elizabeth, investment readiness involves four main elements: an enterprise that really knows its customer segment and the value of its product or service, understands exactly how much capital it needs, and what they want to use investment capital for.
  • Elizabeth explains that when she is trying to determining the level of a company’s investment readiness, she does ask for signs of external verification of the company’s efforts, such as the names and numbers of customers and files with all the background research that the company has done.
  • Another important item that enterprises need to better highlight is the team – at the end of the day, investors interested in early-stage companies are investing in teams, not a particular idea or product, so the team should be presented thoroughly and professionally.
  • She recommends that even for start-ups, companies should go beyond initial signs of traction and do some real investigation into their markets and customers as a way to set them apart from other enterprises meeting with investors.
  • Elizabeth also mentions the importance of personality and that entrepreneurs should know that investors talk to each other, so it is important to represent yourself well in every meeting, because impressions will be shared.
  • Elizabeth advises enterprises to work closely with the investment officer to become an advocate for your company when the deal is presented internally and not try to push too quickly for the investment to be presented for an investment decision.
  • Finally, she shares that early-stage companies should try for multiple outcomes from a meeting with an investor, including a follow-on meeting, critical feedback on the business model, or connections with other investors that may be interested.

Links to Resources:

Connect with Elizabeth:

 

FIP 66: Profit vs. Impact 2/3 – with Tom Adams of Acumen

Today on the podcast Ashlee Tuttleman interviews Tom Adams of Acumen. As Chief Impact Officer, Tom leads the organizations’ work towards creating impact through patient capital investing. Acumen have pioneered Lean DataSM, an approach to data collection which helps to build more impactful businesses by providing them with data on their social performance, customer feedback and customer behaviour.

On this episode you’ll learn:

  • What we do and don’t know about social performance – and why is that? Tom pushes us to examine our own biases.
  • Traditional aid can work, but sometimes a different type of approach is needed. People can pay for services instead of accepting pure charity. Tom tells us about philanthropic capital investment.
  • Tom talks about what it was like for Acumen to pioneer this type of program 20 years ago before anyone else had entered this space. It takes a lot of patience.
  • He tells us about what it is like to work in a space where standards and norms aren’t developed in the traditional sense. They’re looking for ways  to standardize social performance data on an on-going basis in the same way other industries do.
  • Need to build repeatable systems and methods to understand social performance. Impact from year to year will change. There is no playbook!
  • Acumen Invested in remote data collection to drive down costs. (SMS, text, phone calls etc. were an obvious place to start.)
  • There is always complexity around getting good data and avoiding bias. At its core, it boils down to listening to people and listening to your customers.
  • Be open to hearing about unintended consequences. Something that seems inherently positive can have unintended negative effects.
  • JD Power is a shining example of the successful use of consumer reports. Engineers had always ‘known best’ when it came to making cars. JD Power found they had more success when they included consumers in the equation and asked them what they wanted!
  • Invest in your monitoring and evaluation in the beginning of your work. (Needs to be a core part of a socially oriented organization).
  • Positive social change starts with listening to the user.
  • How do you get started in the beginning? Getting the basics of customer feedback in place can be simple. Net promoter score? General feedback? How likely are you likely to recommend? Build from there.
  • When it comes down to it, the basics of this work are continuous listening. You don’t need to overcomplicate it with specific measurements.
  • More remote you can be the more likely you can trust the data. (People are more likely to alter their response in-person). The goal is unbiased data.

Links to Resources:

Connect with Tom:

 

 

 

Shloka Nath Finding Impact

FIP 54: Gender-lens Investing with Shloka Nath

This episode triggered a few ‘a-ha’ moments for me and it’s a topic I’m proud to cover on the show. Gender-lens investing is a growing trend in the impact sector and Shloka Nath has some valuable lessons to share from her experience setting up such a fund in India with her business partner Reena. Shloka works with one of the largest philanthropic organisations in India, she’s an active angel investor and has over a decade experience in print and and broadcast journalism.
On this episode you’ll learn:
  • Why Shloka and her business partner decided to setup a women’s impact fund that addressed the needs of women, what research she did and with who.
  • We find out what’s behind the name Sankhya Women’s Fund and the ancient Indian philosophy it refers to.
  • Why women make wonderful investors, especially for impact focused companies that require patient capital.
  • We elaborate on the meaning of gender lens investing more broadly, because it’s a growing trend in the investment space.
  • We discuss what sort of evidence is available that indicates improved performance of companies and investment portfolios that take a gender-positive approach.
  • We discuss what businesses can do to stand out more to gender lens investors, and how to ensure their company is a good fit for these kinds of funds.
  • We hear what barriers they faced with setting up their fund.
  • We hear what advice Shloka gives to women-impact businesses seeking capital for their business or investors wanting to deploy their capital in this way.
Quote:
  • “Out of one lens see the participation, needs and realities of women and the other you see the  participation, needs and realities of men and your vision is optimum only when you have the combination of the two.”
Links to resources:
Connect with Shloka:
What was your favourite lesson from this episode? Let me know on Twitter by clicking here!
David Auerbach Finding Impact

FIP 028: Fundraising, Media and Conferencing with David Auerbach

This is part two of an interview I had with David in which he dishes out tons of advice on all things communications and fundraising. David Auerbach is the co-founder of Sanergy – a social enterprise making hygienic sanitation affordable and accesible in Africa’s informal settlements. His role on the team is external relations, which concerns all things money, talent and partnerships. It’s a huge pleasure to get David on the show, he’s been a friend and peer in the sanitation sector for many years, and I’m a true fan of Sanergy. Check out episode 27 in which we talk about all things founders. Read on for a summary of my main takeaways from this great interview with David, which I’m sure will be invaluable to anyone in the social sector seeking to raise funds for their organisation.

On this episode, you’ll learn:

  • Why Sanergy believe it’s important to be forthright when talking about sanitation (not to shy away from talking about poop).
  • To avoid poverty porn when telling your story, better to talk about the problem at the community level, rather than at the suffering at the individual level. But then refer to the transformation happening to the individual.
  • Sanergy believed from day one, that any media is good media – because it could impact a future funder or a future manager on your team. So important to invest in a communications team early on.
  • Fellowships with good brands, such as Echoing Green, Draper Richards Kaplan and Ashoka, has meant bringing some great media attention to their organisation.
  • Reaching out to local media is important for reaching new talent but also to provide legitimacy to government, who are a critical partner in Sanergy’s scale.
  • Sanergy entered into many business plan competitions which had the added benefit of really honing their story early on and meant they got really good at delivering it.
  • When targeting new audiences in their communications, they’re having to rethink their pitch, especially in terms of scale if it’s a municipality you’re pitching to.
  • When the most important person in your social enterprise in the customer you’re serving, you can’t have foreigners coming in to your community watching them go to the toilet!! So Sanergy has crafted a tour which gives visitors a really good insight into their business. And they especially don’t stop the cement mixer if it’s noisy – because work must continue!
  • It’s useful to keep track of conference effectiveness via an internal scoring system, including things like (a) did we gain access to new funds, (b) did we get to efficiently check in with current funders, (c) did we get to speak, (d) did a media interview come out of it, (e) did it give a unique opportunity for a team member to develop their skills, etc.
  • It’s important to get the conference attendance list in advance so meetings can be planned – as opposed to a hit and hope strategy. Then get introductions to the people you need to meet, as cold emails are hard.
  • Writing the introduction email for your contact to forward on saves time and makes it easy to be introduced.
  • Always go to the networking events at the conferences, and never try to do the pitch there. Instead, schedule a time for the morning or later on.
  • If the priority for your organisation is fundraising, then your order of priority at your conference might be (a) meeting funders; (b) building your network; (c) attending conference lectures or talks.
  • Be very clear on next steps when meeting someone at a conference, and follow up quickly via email.
  • Sanergy uses twitter to share articles and show thought leadership, to show they’re part of the sector community, and then Facebook for keeping in touch with their fans.

Resources:

Get in touch with David:

 

lauren fletcher finding impact podcast

FIP 013: Planting Trees with Drones, with Lauren Fletcher

Lauren Fletcher talks us through his startup journey at Biocarbon Engineering, which quite simply, plants trees with drones. He has been a NASA engineer where he designed artificial environments for space shuttles and space stations. He’s studied Mars exploration technologies. He spent 4 years in the desert of Peru studying microbial biology for missions to Mars. And he’s studied Civil and Environmental Engineering at Stanford University where a course in deforestation first sparked his interest in reforesting the planet using robotics. Lauren takes us through his entrepreneurial journey over the last few years, building their ecosystem restoration company using lean startup techniques and methods to help roll out your business. There’s tons of useful nuggets of advice in here for anyone starting out on their journey.

Some of the things you’ll learn on this podcast include:

  • How social entrepreneurs should always be stepping back to see how their product or solution fits within the bigger picture, which can, specifically, link you up with those who have available resources to help you go further.
  • How Laurent went about finding his founding team, and how he looked for people with exposure and basic understanding of the subject matter he needed.
  • Their strategy of finding early capital, where they went after equity, prizes and government grants
  • We learn the downside of going after prizes, including how they are a lot of work for not alot of money, but the upside was a viral video that got over a million views that gave them the notoriety to attract seed round investors
  • How their product development roadmap panned out, which included building a pre-prototype basic flying planting machine in 3 weeks for the Drones for Good competition in Dubai.
  • How they’re thinking about getting their first clients, and the short to long term vision for revenue generation and growth

Resources:

Connect with Lauren

 

nicky khaki on finding impact

FIP 011: Raising Early Stage Finance with Nicky Khaki

In this episode, Nicky Khaki talks us through early stage finance. He runs the EWB Venture fund that specifically targets early stage businesses and provides them with high-quality professionals to provide expertise to drive them forward. Nicky Khaki started out as an investment banker on Wall Street before working in Kenya for a year setting up small scale water shops in urban areas. He went back to University to study international development and then connected with Engineers without Borders Canada who were looking to formalize their investment offering for early stage businesses whilst providing professionals (or “talent”) at the same time.

  • Some of the things you’ll learn on this podcast include:
  • What the landscape of finance probably looks like for social entrepreneurs in Africa.
  • What EWB Ventures looks for in a business to potentially invest up to $100k and specifically at what stage.
  • Why EWB Ventures provides talent for 1-2 years when they make an investment into a company.
  • We talk about their talent screening process and what the talent can expect when they get placed with a company.
  • Recommendations for early stage entrepreneurs to cultivate investor relationships, including sharing a monthly update on progress.
  • What an early stage enterprise should have ready when approaching an early stage investor, and why a financial model is not expected at this stage.
  • We discuss common pitfalls Nicky’s seen with pitches to his organization, including (a) know your audience and making sure your presentation responds to that audience; (b) include what problems you’re facing and what do you need help with; (c) not interviewing the investor, to ensure they’re aligned with your style and approach; (d) talking about a major expansion in the pitch – which is crazy to do, even before you’ve reached revenue.
  • If Nicky was setting up a social enterprise, which sector he would go into.

Resources:

Connect with Nicky: