Reinventing How Social Entrepreneurs Raise Investments for Impact
We all know the legends of ivy-league drop-outs who became billionaires in Silicon Valley. After years of building growth companies and accumulating mindblowing material wealth, the story goes on like this: the billionaire and his wife start a foundation to think about social and environmental impact. During all of this, they avoid millions of dollars of taxes and start futuristic companies. Will this Zuckerberg-Gates model of ‘wealth- hacking’ be the primary vehicle to change the world? Who will save the planet fraught with climate crisis, social inequity and food insecurity?
Instead of relying on change driven by companies who focus on billions of dollars of revenues, how can we build billions of entrepreneurs who think about solving social problems?
In pursuit of this reality is Luni Libes. He is a serial entrepreneur turned author, podcaster, mentor and startup accelerator founder who believes that building an entrepreneurial ecosystem geared towards social and environmental impact is an idea whose time has come.
Luni Libes is a serial entrepreneur turned author, podcaster, mentor and startup accelerator founder.
“We cannot rely on foundations of big tech companies or the governments to make the change. We need to find young companies who solve real-world social problems and give them 100 years of growth. It can co-exist alongside philanthropy and traditional investing. This is the way to drive change in the 21st century,” opines Luni.
Building an Ecosystem for Social Good
After founding and selling two companies, Luni decided to focus on grooming other entrepreneurs and doing good. He now leads Fledge, a global network of impact-oriented accelerators, teaches early-stage impact investing at ‘The Angel Accelerator’ and runs a non-profit called Realize Impact, that makes it easy for anyone to make an impact investment.
He focuses his efforts on Africa, through Africa Eats, a company focused on feeding Africa. “I started Africa Eats to focus on bringing investments to food and agriculture companies. These companies are feeding hundreds of thousands of smallholder farmers in Africa, who are unable to sustain themselves on subsistence- style agriculture,” he explains.
Investing for Impact
So who are the investors in impact oriented companies? As outlined by another Luni-led organization Investor Flow, the Investor Flow Report issued in 2021 highlights that they are individuals, funds, foundations and institutions spread out across the world.
While they are global in terms of where they invest, it is easy to see that in terms of numbers, they are mainly concentrated in the wealthier pockets of the US and Europe. And where do they invest? Mainly in Africa and Asia, though, 25% are location-agnostic.
What are the top impact goals for investors? Zero hunger and poverty alleviation are the main goals that move the needle for those investing in social change.
“Interestingly, I do not have to persuade them to invest in these challenges- they usually have traveled to Africa or to Asia for internships, leisure or work. They have had some kind of exposure to real-world issues,” says Luni. “I visited Africa in 2016 to meet companies and their founders. During the pandemic I continued mentoring them virtually, and they traveled to the U.S. for demo-days to meet the investors in Seattle.”
Future of Impact Investing
“Recall the face of the poorest and weakest man you have seen, and ask yourself if this step you contemplate is going to be any use to him.” ― Mahatma Gandhi
Generating profits takes time and effort. Achieving profitability with purpose takes more. Social entrepreneurs and investors care for sustainability and social change. They work in challenging social and economic contexts. They need enablers like Luni Libes to thrive and grow. Their hard work needs visibility, they need evolved skills to establish credibility and connect with those who want to achieve more with their investments. Not just in terms of returns on their investment but also in terms of doing good for the world.
About Impactika Consulting:
We at Impactika Consulting help do-gooders do better through purpose-propelled® consulting. We are a digital marketing, strategy, and social impact consulting firm. We help for-purpose organizations take on the world’s toughest challenges in digital rights, social and economic justice, education, and more.
As an advocate for both business and doing good, Impactika is a women-led team committed to helping organizations around the world find impactful and meaningful ways to market their purposes and connect with others.