|| Print ||
|Articles - May 2014|
|Monday, April 28, 2014|
Page 4 of 5
IV. Silicon Valley humanitarians
Why do investors shy away from mission-driven businesses in the developing world? Ann Mei Chang doesn’t mince words. “You’re working in challenging environments with poor people,” she says. “It’s not a great equation for people who want to invest.”
A former senior engineering director at Google, Chang now holds the title of chief innovation officer at Mercy Corps, the well-regarded, Portland-based aid organization. Mercy Corps has a long history of working on what Chang refers to as “scalable” social ventures — such as microfinance operations that loan small amounts of money to people in poverty. Now Chang aims to bring her “business expertise, a crisper focus and more rigorous methodology” to these efforts.
Getting investors onboard is part of that project. Enter the Mercy Corps Venture Fund, a Chang-led initiative aimed at attracting early-stage funding to social ventures in the developing world. The fund is seeking a $10 million raise, with about a dozen projects currently under review. “The focus is about creating a business model that can be self-sustainable,” says Chang. “We want to be very rigorous about the projects that look most promising. Only after we prove the model can work can we look at investors.”
One possible candidate is MiCRO, a natural-catastrophe microinsurance startup Mercy Corps launched, along with a local microfinance institution, Fonkoze, and the global reinsurer Swiss Re. Following a pilot project in Haiti, the company plans to add hundreds of thousands of clients over the next five years, emerging with the first global- insurance product that can mitigate natural-disaster losses faced by the poor in Africa, Asia and Latin America.
The Mercy Corps Venture Fund capitalizes on two simultaneous trends: On the nonprofit side, there is growing concern about the limitations of the traditional grant model, in which aid programs receive large amounts of money but often serve a limited number of people. Meanwhile, a new crop of investors, especially in the tech sector, are looking for outside challenges and opportunities. Silicon Valley executives have amassed enormous fortunes, Chang observes. “They are starting to say, ‘I have more money than I need; how can I make the world a better place?’”
In recent years, tech leaders have taken a more aggressive stance on a range of public-policy issues, including immigration reform and government surveillance; in April, executives from Apple, Google and others collectively announced their opposition to the Keystone XL Pipeline. Silicon Valley entrepreneurs can be cynical about USAID projects, says Chang. But incubating a small business and taking it global — “that’s a language they understand.” And while Chang acknowledges some services will always require a subsidy — “the public good of having people vaccinated is high enough, you don’t want to rely on people actually paying” — she says other projects, like financial services and urban sanitation, are well suited to a market intervention.
Mercy Corps, which in April announced a new board member, Gisel Kordestani, former director of new business development at Google, is moving more formally into that space. Says Chang: “We want to figure out how to bring the best practices of Silicon Valley to the NGO sector.”
The problem: “Ninety-five percent of our assets sit in investment accounts, and only five percent are used to do grant work. That five percent doesn’t even come close to what we can do to enhance economic development.”
The solution: In January, the trust launched Invest Oregon, an initiative that will redirect a portion of MMT’s approximately $800 million “corpus” to investment vehicles. So far the fund has invested in the Portland Seed Fund and Ecotrust Forest Management.
The takeaway: “In the past we have focused on nonprofits, but we need to look at social outcomes that come from the for-profit side. There’s a great entrepreneurial environment out there, and we need to start interacting in that space.”
Friday, October 24, 2014
A majority of respondents agreed: Local vineyards should remain Oregon-owned and quality is the most important factor when determining where to eat or buy groceries.
Tuesday, December 02, 2014
BY LINDA BAKER
A conversation with attorney Erich Merrill about the latest way to raise money from large groups of people.
Wednesday, October 22, 2014
We didn’t intend this issue to have an election season theme. But politics has a way of seeping into the cracks and fissures.
Thursday, December 11, 2014
BY JESSICA RIDGWAY
Lawger upends the typical hourly based fee model by letting clients determine the cost.
Saturday, December 13, 2014
Checking in with the managing director of Arnerich Massena.
Wednesday, October 22, 2014
BY KIM MOORE
A conversation with Majd El-Azma, president and CEO of LifeWise Health Plan of Oregon, followed by the Healthcare Powerlist.
Friday, October 24, 2014
How does your workplace stack up against competitors? How can you improve workplace practices to help recruit and retain employees? Find out by taking our 100 Best Companies to Work for in Oregon survey!
|A Complex Portrait: Immigration, Jobs and the Economy|
|Woman of Steel|
|Kill the Meeting|
|Labor dispute at the ports slowing Christmas deliveries|
|Fed stresses 'patience' regarding interest rate|
|Obama to announce end of Cuba isolation|
|Energy prices drop cost of living in US by most since 2008|
|Russia's attempt to slow ruble freefall fails|
|AAA: Holiday travel could set record this year|
|Sub-$2 gas prevalent across US|
Is your business ready to join us in the call for action? This opening panel includes Oregon businesses who will discuss why they signed the Oregon Climate Declaration, the investments they are making to reduce carbon emissions, and how their actions are affecting their companies.
Get ready for two days of special events produced with the EPA, Portland Timbers and ISOS before and after the GoGreen Conference on October 16.
How sports tourism is driving economic growth and making cities across Oregon a better place to live.
Port of Morrow's business-ready attitude has a surprising global impact.
Through its support of the arts, the Cultural Trust is strengthening the business community.
Heed the morals of these seminal holiday stories in your everyday life.
Amy will practice in the firm's Business, Real Estate, and Tax practice groups.
While the Bend City Council ultimately upheld the approval which enables OSU-Cascades to move forward with the 10 acre site, it did also thoughtfully consider the nature of its code requirements, resident concerns and OSU-Cascade’s efforts and suggestions and crafted conditions of approval to address potential impacts of the site in the area.