Jacqueline Novogratz

Emily Smith is a second year MBA student at the Haas School of Business, interested in using social enterprise solutions to address poverty on a global scale. After receiving her degree in Electrical and Computer Engineering from Cornell University, Emily worked as a corporate consultant in New York City. She then spent time consulting with a nonprofit organization in Africa, where she discovered her passion for international development. After her time in Africa, Emily came to Haas to study market based approaches to poverty alleviation. Emily is President of Global Initiatives at Haas and head of Marketing for the Global Social Venture Competition. In addition, Emily has worked for a number of social enterprises in industries including microfinance, international health and fair trade.

Jacqueline Novogratz, Founder and CEO of Acumen Fund, and Tim Brown, CEO of renowned innovation and design firm IDEO, are old friends with a world-changing business partnership. Last week at the University of California at Berkeley, they united on stage for the first time to discuss human-centered poverty alleviation.  Another close friend (and Acumen Fund board member), Stuart Davidson of Labrador Ventures, moderated the discussion. The intimate and engaging conversation addressed the intersection between design and development, which has made a partnership between two seemingly different organizations so profoundly impactful.

Jacqueline and Tim’s friendship began at a TED conference, where Jacqueline was discussing water issues in the developing world, and IDEO had just recently been involved in a design project with KickStart aimed at increasing access to water. They immediately realized that they were both working towards a very similar goal: helping people innovate in order to grow. Jacqueline explained that “we were putting ourselves in other people’s shoes to better understand what they want, and that’s design thinking; that was a whole new lexicon for Acumen Fund.”

According to Tim, IDEO’s questioning process is about “drilling down and spending enough time to get beneath the surface. Making people notice things they might not have noticed themselves.” The challenge with bringing this method into development is being aware of cultural context. For that reason, he emphasized the importance of getting design thinking out into the world.

To support this effort, IDEO has developed an incredible guide, called the Human Centered Design Toolkit, to help organizations and entrepreneurs use design thinking in their work with impoverished communities. The aim, as Tim explained, is for people in need to be co-collaborators, for design thinking to be a co-owned process. This approach, in these extreme markets, will lead to innovations never dreamed of in the developed world.

Stuart brought up a common question in discussions about social entrepreneurship and innovation: how does this scale? “It’s not about the insight scaling, it’s about the ideas scaling,” Tim explained. The process is about getting ideas; then you develop the ideas which are truly scalable. Jacqueline noted that many top down approaches are scalable in theory, but they don’t work effectively and lose traction quickly if locals are not involved from the start.

The discussion shifted to how the language of the industry has changed over time. In Jacqueline’s opinion, “language precedes change.” She recalled that eight years ago, when Acumen Fund started, she had to argue with individuals who refused to be called “investors” because they weren’t getting any financial return. Now the concept of social return on investment is becoming widely accepted. The lexicon of the industry is shifting and acknowledging the power of an investment-oriented approach.

At the core of the investment approach is a full respect for all human beings, a sentiment that continually surfaced throughout the conversation. Market-based approaches aim to treat people as consumers, who despite their income level, desire all the things we desire. Jacqueline explained that instead of telling people what they “should” do, it’s about asking what people want as consumers and truly listening. In forcing accountability and investing in growth, we are able to actionably demonstrate a belief that all people are capable of achieving success.

The sessions closing sentiment related to each firms contribution to change in the developing world. Tim explained IDEO is about enabling choice; creating new choices that didn’t exist, so that people can make them if they desire. At the core of what both firms seek to produce, Jacqueline concluded, “real dignity ultimately comes from choice and opportunity.”

The event was hosted by Global Initiatives, a student run organization at UC Berkeley’s Haas School of Business, focused on exploring market-based approaches to international development. The discussion was part of a Haas class called Market Based Approaches to Poverty Alleviation taught by former Acumen Fund Fellows Jocelyn Wyatt and David Lehr. Not your average business school course, this is one of the many opportunities offered by Haas, bringing innovative market-based approaches to students with a passion for social change.

The event was sponsored by The Center for Nonprofit and Public Leadership, The Lester Center for Entrepreneurship and Innovation and the Blum Center for Developing Economies.

Editor’s note: Video of the event can be seen on YouTube.

On Tuesday, September 8, the Blum Center for Developing Economies at UC-Berkeley will be hosting Tim Brown, the CEO of IDEO and Jacqueline Novogratz, CEO of Acumen Fund, in a session called Putting the People First: Human-Centered Poverty Alleviation.

In a discussion moderated by Acumen Fund board member Stuart Davidson, Tim and Jacqueline will discuss innovative approaches to global development and the ways that IDEO and Acumen Fund have worked together to find solutions that start with the poor as people.

The event is free and open to all but reservations are recommended. For more info and to RSVP, go here.

Patient capital around the world: The need for patient capital is increasingly being written about, as in this article from DAWN, Pakistan’s leading English-language publication, or this post on the Harvard Business Review blog.

Friends in the news: Our friend Liz Ellers was cited in Main Line Media News for her creation of and work with the collaborative funding partnership globalislocal, which has supported some Acumen Fund investments.

“The Boss”: The Sunday New York Times included a feature on Acumen Fund CEO Jacqueline Novogratz.

Summer spotlighted in the FT: Abhay Nihalani, one of our summer associates in Kenya, has been writing about his work there for the Financial Times’ MBA blog, as well as in an article in the FT’s print publication.

India investees in the news: Two of our investees were featured recently in Outlook India: D.Light and LifeSpring.

As a venture philanthropist, Acumen Fund’s Jacqueline Novogratz leads entrepreneurial projects across the globe—many of which put women at the helm of emerging local businesses. In this video interview, she discusses her experience developing other women leaders, the way they have shaped her own approach to leadership, and the different leadership cultures she sees at play in the public and private sectors.

This interview was conducted by Bill Javetski, an editor with the McKinsey Quarterly, in February 2009. It was recorded in the New York office of Acumen Fund.

Click below to watch the video:

As Chair of Acumen Fund’s board, I couldn’t be more proud to announce that Jacqueline’s book launches TODAY! This book has been a genuine labor of love, and her clear, distinct voice can be heard on every page. Jacqueline started writing it in 1996 after the Rwandan genocide. The colorful, funny and painful stories mark her personal journey from arriving in Africa in 1986 and continue through the founding of Acumen Fund. Through the stories, we learn important lessons about building entrepreneurial solutions to poverty, about listening, and about creating a life of meaning. For anyone interested in the work and approach of Acumen Fund, or in how we might shape our collective future, this truly is a must-read. I also believe that this book could be very beneficial to Acumen Fund.

Many have already asked how they can help. Just to name a few ways, you can:

• Write a short review on Amazon and/or comment on the reviews already there
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You can purchase books at Amazon, Barnes & Noble or at your local bookseller.

The world has never needed all of us working for the common good more than it does today. Thanks for being part of our community of friends - and thanks for helping us spread the word!

Sincerely,

Margo Alexander

P.S. A good friend has generously committed to give Acumen Fund $15 for each of the first 5,000 books sold! We are grateful for this pledge and hope you will help us by buying early!

With Pakistan often among the top headlines on The New York Times front page (and usually not in a flattering way) – we are heartened to see the most recent issue [Dec – Jan 2009] of Blue Chip Magazine, a leading business magazine in Pakistan, carry a cover story on our very own Jacqueline Novogratz and the investments Acumen Fund has made in Pakistan.

Our most recent intra-office debates revolve around the question of how to support and encourage social entrepreneurship - let alone find the solid business ideas that are providing services at the BoP - so we at Acumen Fund are excited to see positive news of on-the-ground initiatives and social businesses that often operate in the most challenging environments and landscapes. The story really is around social entrepreneurs like Roshaneh Zafar, Tasneem Siddiqui, and Dr. Sono Khangharani who “have seen possibilities where other people see hopelessness.”

Also featured in the same issue of Blue Chip is Roshaneh Zafar , President of Kashf Foundation, who recently launched Kashf Microfinance Bank Limited (KMBL) in October 2008. KMBL is an investment of Kashf Holdings Private Limited, the parent holding company in which Acumen Fund has also invested.

In the five months since operations were launched, Kashf Microfinance Bank has set up 18 branches and is serving 20,000 microfinance clients. But with the microfinance industry facing a challenging period in Pakistan due to the macroeconomic environment and political instability, the innovation of the original group lending methodology is now facing a setback. There is a need to innovate in microfinance services beyond the group lending methodology commonly used by microfinance institutions in Pakistan.

With the launch of the new Kashf Microfinance Bank, Kashf has begun individual lending and savings mobilization and now provides savings products to women from low-income communities. Roshaneh discusses the pioneering work Kashf has been doing at the BoP and Acumen is proud to support Kashf and the microfinance sector in Pakistan.

I write from Nairobi, where people have been dancing in the streets on this historic day of America’s inauguration of its first African-American president, Barack Obama. The Kenyans we’ve met have called him their brother, their son, and even the Second Coming. “He will bring the fighting countries close and end the wars,” a man told me while we were in Kibera, one of this city’s largest slums.

Though expectations of President Obama may be impossibly high, this inauguration has brought the entire world together for a brief moment of unity, hope and inspiration. I couldn’t have felt prouder to be an American, to feel so connected to Kenya, to believe more strongly today than ever that we can all become global citizens in the truest sense of the word. 

President Obama’s speech carried so many themes that lie at the core of Acumen Fund’s mission.  He promised more compassion for those who are suffering in the developing world, and recognized the power - and limitations - of markets, urging a new level of innovation and creativity as we solve the problems ahead. 

Barack Obama’s vision is soaring and powerful, and he will need each and everyone of us, regardless in which country we live, to succeed.  We at Acumen Fund will do all that we can to help and will do so with determined optimism and renewed effort. 

Yes. We. Can…..

This is a terrific blog post from our Advisor and great friend Seth Godin who provides all kinds of ideas for getting involved and doing something worthwhile on Martin Luther King Day. Indeed, he provides thoughts for daily giving and he’s right - if we all gave an hour a day - or even a week - we could transform the world — especially if we did it in ways that amplified important voices, leveraged our resources or enhanced an organization’s sustainability.

Seth suggests we think about highlighting leaders and innovators. Lately, I’ve been thinking a lot about heroes, how we choose them, how we make them, and how and why we follow them. So many of the leaders who’ve most impressed me are the truly unsung heroes and include the customers we serve, the entrepreneurs we support, the teammates, board and partners with whom I’m privileged to work. What can each of us do to bring especially those voices who never get heard to a larger public? My instinct says that we’re getting readier to listen daily, and the time is now to bring forth visionaries who can see a path through the markets that too often ignore the poor and traditional charity that too often sets expectations too low for the poor.

We’d be interested to read your favorite stories of people who have little or nothing and yet manage to survive with dignity and grace, against the odds. Each time I read such a story, it redoubles my commitment to working toward a world where every single one of us really does have the chance to solve our own problems and make our own decisions.

The post’s title says it all - almost. Yes, Acumen Fund founder and CEO Jacqueline Novogratz has written a book - it will be published in early March. Entitled The Blue Sweater, the book is part memoir, part manifesto - a personal history trafficking in the lessons of Jacqueline’s life. Those lessons inevitably include many of the core values on which she founded Acumen Fund: respect, generosity, accountability, humility, audacity.

Earlier this evening, New York Times syndicated columnist Nicholas Kristof posted a review of The Blue Sweater on his blog, On the Ground. His entry is entitled Investing to fight poverty:

One of the most interesting innovators in aid and development is Jacqueline Novogratz, a New Yorker, the CEO of the Acumen Fund. She is, what? An aid worker? A banker? A bleeding-heart venture capitalist? A tough-minded philanthropist? All of the above?

On my Southeast Asia swing, I read an advance copy of her memoir, “The Blue Sweater,” which will be published in February [actually, March 3], and it’s a terrific and sober-minded look at the complexities of doing good. She acknowledges that helping people is much harder than it looks, and that donors need to do more listening and less instructing – yet at the end of the day, she believes there are things we can do that really do make a powerful difference to the world’s neediest.

Browse to Kristof’s blog and check out the review: http://kristof.blogs.nytimes.com/2009/01/06/investing-to-fight-poverty/

You can learn more about The Blue Sweater at http://www.thebluesweater.com

In addition to holding the “billionaire title,” these three individuals share a commitment to a new movement of social change, according to Matthew Bishop and Michael Green, co-authors of Philanthrocapitalism: How the Rich Can Save the World.  Bishop and Green believe that Gates, Clinton and Jolie are part of a new generation of wealthy, powerful people who are changing the role of philanthropy by combining focused, charitable donations with “big-business-style” investment strategies. Their book profiles several of these new philanthropists, including those listed above and other influentials like George Soros and U2’s Bono.

Bishop, American Business Editor/New York Bureau Chief for The Economist, explained the basis for focusing on the super-rich as change agents in a recent interview with Alliance Magazine: “The point we’re making is that there are more super-rich people around than ever before and they have all sorts of problem-solving talents developed in their business lives that they are now looking to bring to bear on some of the world’s big problems.”

But while these philantrocapitalists may be willing to take greater risks with their checkbooks as compared to traditional philanthropic institutions, many of them have a deep interest in accountability and rigorous performance measurement. Bishop’s and Green’s Values blog recently published an entry on philanthrocapitalism’s need for robust impact measurement systems.  Acumen Fund’s new portfolio management system, called Pulse, was pointed to as one innovative “work-in-progress” solution aimed at addressing this challenge.

Bishop also recently interviewed Acumen Fund CEO Jacqueline Novogratz at the Clinton Global Initiative about Acumen Fund’s emphasis on market-based solutions to solving the problems of global poverty (the video can be viewed below or on The Economist’s website).

In reviewing the list of names and organizations included in Bishop’s and Green’s book, it is clear that philanthrocapitalism has as many distinctions in as it does similarities.  Though the movement is unlikely to settle on a precise spot along the scale of pure philanthropy to pure capitalism, an exciting, unifying theme emerges: there is great promise in connecting high net worth individuals with innovative intermediaries to move from social investment to long-term impact.