SOCAP13 Session Recap: Don’t Forget Purpose at the Exit

Posted by on September 6th, 2013

This session was focused on how impact investors focus on using capital for good. Panelists shared what they’ve done to focus on what happens once they’re invested and what they do to ensure that impact doesn’t exit when they do.

Food for thought from this session:

  1. The first question you need to ask yourself is if you even need to setup an exit. Depending on your organization, you may not need one. But if you need capital to scale and you want to “grow up” then you need to focus on the exit.
  2. You can preserve mission if you do it with integrity and do it from the very start. Must have central things at core of what you do as an organization – pricing, culture, early customers, etc. must focus on the mission.
  3. Impact investing sector is currently borrowing the products and the structures from private equity. Is it great and we should keep doing that or is it broken and needs to change? Either way, it’s important to note that to fix the system as an investor one needs to first understand the system.

By SOCAP13 Volunteer Nikita T. Mitchell

Photo credit.

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