Impact Investing 101�
with the SFTech4Good Meetup
About us
#SFN2
Our Sponsors
NetSquared:
501 Tech Clubs
#SFN2
Venue host: Exygy
Thanks so much to Exygy for allowing us to use their space for tonight’s event!
Exygy is a design, engineering, and strategy agency.
They build custom web and mobile apps and more.
Also, they’re hiring! exygy.com/careers
Bay Area Impact Investing Initiative
Lauryn Agnew, Founder
Lauryn Agnew leads the Bay Area Impact Investing Initiative and works at Seal Cove Financial. She is an expert in Place-Based Investing.
Bay Area Impact Investing Initiative
To promote sustainable economic prosperity and community resilience in the San Francisco Bay Area
Impact Investing
Investments that have strong financial returns and �a positive impact on the mission
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Financial First
Impact Investing
Impact First
Impact Investing Continuum
A wide variety of financial structures with impact
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Impact Investing Themes
from Rockefeller Philanthropy Advisors:
Solutions for Impact Investors: From Strategy to Implementation
Intentional Impacts
Each asset class has a unique combination �of risk, return and impact
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Family of Funds
Bonds
Real �Estate
Infrastructure
Private �Equity / Venture Capital
Stocks
Liquidity and scale for supporting corporate and municipal investments
Promote sustainable real estate development, job creation
Influence corporate behaviors and employment conditions
Company formation, �job creation and sustainable development
Build long-term�real assets in water, transit, housing, energy, schools, etc.
The Impact Investing Intermediary
Centralizing and Collaborating = Collective Impact
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Community Foundations
Quasi-Public & Private Foundations
Endowments
Private & Corporate Retirement Accounts
Public Retirement Funds
Stocks
Bonds
Real Estate
Private Equity / �Venture Capital
Infrastructure
Increased SF Bay �Economic Prosperity
Enhanced Wealth Creation
Investment
Increased Services
Integrate ESG factors and corporate activism
Allocate portion for place-based mission aligned bonds
Seek and prioritize �sustainable local impact
Target regional co-investing in public / private partnerships
Expect long term local company formation and job creation
P3 and the Complex Capital Stack
Getting out of Silos and into Public Private Partnerships
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Risk Capital
Grants, PFS notes
Senior / CDFI Capital
Private/Fiduciary Capital
Public Resources
Tax credits and incentives
MRIs & PRIs
Low interest rate loans
Place-based Investing/Place-making
When Place is your mission, collaborate.
From Leonardo Vazquez, The National Consortium for Creative Placemaking; www.artsbuildcommunities.org
Jenny Kassan - Capital Raising Coach and Securities Attorney
Jenny has over 20 years experience as an attorney and advisor for mission-driven enterprises. She has helped her clients raise millions of dollars and advises clients on forming startups and co-ops, structuring legal entities to preserve social/environmental mission, enterprise finance, securities regulation, investment crowdfunding, and nonprofit law.
jennykassan.com
@jennykassan
Impact Investing���What impact do you want to have?�
CuttingEdgeX.com
What is a “market rate” return?
VC: The average VC fund breaks even or loses money
Stock market: Dow Jones Industrial Average annual return for the last ten years: 3.228%
The world’s financial markets are likely overvalued by at least $20 trillion due to stranded fossil fuel assets
Giant Multinational Publicly Traded Companies
Small Independent Businesses
Employees:
56 million
Production:
$7 trillion
Employees: 56 million
Production: $7 trillion
TOTAL US ECONOMY:
Two equal halves
Almost 100% of Americans’ investments are in only one-half of the economy – Wall Street companies
Diversify!
R. Paul Herman �Founder and CEO, HIP Investor
ESG Portfolio Expert
HIP Investor rates 32,500 global issuers of stocks and bonds and also enable ratings of 1000s of mutual funds and 401(k) plan fund choices.
HIP = Human Impact + Profit��For more, read his book, �The HIP Investor: �Make Bigger Profits �by Building a Better World.
Disclosure and Disclaimers
HIP Investor Ratings LLC is a California limited liability company, providing 32,500+ ratings for investors, advisers, fund managers and retirement plans.
R. Paul Herman is a registered representative of �HIP Investor Inc., an investment adviser registered in the States of California, Washington, and Illinois, with clients across the USA.
This is not an offer of securities. All investing has risks. �
Past results are not indicative of future performance.
© 2006-2017 HIP Investor Inc. 26
Investing in PEOPLE�Can Beat the Market (1998-2016)
© 2006-2017 HIP Investor Inc. 27
Source: Russell Investment Group, via
© Great Places To Work® Institute
1998-2010, ANNUALIZED RETURNS
Credit Suisse Calculates Outperformance of �Global Firms with 1 or More WOMEN on Board
CONFIDENTIAL © 2006-2017 HIP Investor Inc. 28
No Women On Board
+5%
1+ Woman on Board
+40%
CONFIDENTIAL © 2006-2017 HIP Investor Inc.
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HIP Ratings = 100 Point Rating�Indicator of Impact, Future Risk, and Future Return
CONFIDENTIAL © 2006-2017 HIP Investor Inc.
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Worst: 0 | HIP Rating | Best: 100 |
Net Negative | IMPACT Health, Wealth, Earth, Equality, Trust | Net Positive |
More Volatile | Future RISK | More Resilient |
Lesser Potential | Future RETURNS | Stronger Potential |
HIP RATING
Zero
100
Higher HIP Ratings Correlate With Higher ROE
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Private Ventures Can Deliver More Impact
CONFIDENTIAL © 2006-2017 HIP Investor Inc. 32
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K-12 School Districts: HIP Rating vs. Revenue/Student
Which quadrant is most investable?
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CITIES: Women Owned Businesses
vs Median Household Income
How Employees Rate their 401(k)
CONFIDENTIAL © 2006-2017 HIP Investor Inc. and MVP (More Value + Profit) by Building Bridges LLC
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Sample HIP Ratings of a 401(k):�A Rich, Detailed Information Layer
CONFIDENTIAL © 2006-2017 HIP Investor Inc.
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A Sustainable 401(k) �Engages Employees
Source: stok 401(k) census
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