Social Innovation Forum
On Tuesday, March 29, Deval Patrick stopped by Social Innovation Forum’s Social Business Accelerator workshop to talk about Impact Investing.
The Social Innovation Forum (SIF) launched its 4th annual Social Business Accelerator on January 19, kicking off 12 intense weeks of programming for the six social impact businesses in the cohort. Curious about what goes on in an accelerator? Interested in learning more about impact investing? We’ve launched this blog series, Insights into Impact Investing, to offer a glimpse inside our Social Business Accelerator and share some of our learnings from our work in the emerging field of impact investing.
On Tuesday, March 29th, the Social Innovation Forum team hosted Deval Patrick, former Governor of Massachusetts and currently working as a Managing Director of Bain Capital Double Impact. The Double Impact business will pursue investments in mission-driven companies across a number of sectors. As someone who has transitioned from the public to the private sector, Gov. Patrick has had to think deeply about the future and how to continue his concern for impact and the public good. He urged our cohort of Impact Entrepreneurs to do the same as they try and grow their businesses.
Gov. Patrick explained that his first introduction to the Impact Investing space occurred while serving as Governor. Social Impact Bonds were proposed to the Commonwealth of Massachusetts as a method of merging public policy and private funding to serve a public need and expedite fundraising. This proposition spurred Gov. Patrick’s philosophical journey, where he was able to track and discover the impact that these investments had on communities. “All investing has impact”, he urged, “but in this day and age of ubiquitous information, you can’t focus only on the financial bottom line.”
Be fearless about your double bottom line. If you encounter investors who do not value both the impact and the returns, then move on.
He explained that Impact Investing is grounded in the idea of intentionality. By adhering to a double bottom line, many entrepreneurs and business owners can have the social impact they desire and continue to strive for attractive returns. “It’s important for us to demonstrate that you don’t have to sacrifice returns for impact,” Gov. Patrick explained, when asked about whether our entrepreneurs should lead their pitches with profit or impact.
The discussion then moved to Bain Capital's view of impact investing, which is about “delivering both attractive financial returns and significant, measurable social impact.” Bain Capital Double Impact's interests are in three major areas: community building, health & wellness, and sustainability. This double bottom line structure is meant to improve overall quality of life and create economic opportunities in communities that are historically overlooked by investors. Gov. Patrick urged our entrepreneurs to measure their impact. Not only should the impact be measured, but the entrepreneurs must also be able to articulate and communicate that impact to future investors. He advised that they keep their measurement simple and direct, while also using measures of common or comparable usage (i.e. years, cycles, etc.).
As the discussion came to a close, his last piece of advice rang through the room. “Be fearless about your double bottom line,” he explained. “If you encounter investors who do not value both the impact and the returns, then move on.”
About Deval Patrick
Deval Patrick served as the 71st Governor of the Commonwealth of Massachusetts from 2006 to 2015. Gov. Patrick was Executive Vice President and General Counsel of The Coca-Cola Company as well as Texaco, Inc. He was previously a Partner at Day, Berry & Howard and a Partner at Hill & Barlow. In 1994, he was appointed by President Bill Clinton as Assistant Attorney General overseeing the Civil Rights Division of the US Department of Justice where he worked on issues including racial profiling and police misconduct.
About the Author
Jackie Rothmeier was the Social Innovation Forum's Program Co-op from January to June of 2016. In this role, she worked closely with the Manager of Strategic Partnerships and the Senior Manager of Development and Communications to support Social Innovation Forum's programming, communications, and events.