This content was created by GHION.AI . This content was uploaded by GHION.AI . This is a YouTube video titled "Social Impact is Good for Business" featuring a discussion between Freada Kapor Klein and Mitch Kapor. The video, created on April 17, 2019, explores the integration of social impact and economic value in investments, particularly through Kapor Capital's approach to investing in tech startups that address access and opportunity gaps for low-income communities and communities of color. They discuss their investment criteria, the importance of diversity in business, and their unique founder's commitment.
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There's a prevailing view that social impact.
Is separate from economic value and that.
Investing in social enterprises means is concessionary towards returns that you're giving those up.
We actually don't think about that at Kapor Capital. We think the other way to think.
About it is that the overlap of social impact and economic value you can find that both are driven from the same source. So here are our investment criteria. We have about 130 companies in our portfolio. We're going to be releasing our returns for the first time ever on May 8th. We do seed stage tech startups. The core business, not the philanthropic effort, not the csr, not a side effort. The core business closes gaps of access.
And or opportunity and or outcome for.
Low income communities and or communities of color.
We have not found any problem with deal flow. People were very worried about that.
We, we had more than 3,000 deals come across our desks last year and we invest in somewhere between 10 and 15 a year. In 2016 we became the first venture.
Capital firm to implement a founder's commitment.
That was January of 2016. We don't write a check unless the CEO makes a commitment to to building.
A welcoming culture and a diverse team. We are not prescriptive at all.
We say to our founders, depending on who your customers are, we think that your aspiration should be that your employee mix matches your customer base. And if you think about it, sounds like a good business practice. So if you're selling into public schools in the US K12, you're going to.
Have a very different demographic than if you are a fintech company and you.
Are a B2B company and your clients are Wall Street. So all of this is on the website. Those are some of our companies. You might recognize some names there. So when we ask them how to implement this, we ask them to look at four things and there's an acronym of give here Set goals. And again they set their own goals.
We're not prescribing it.
We're asking them to set goals that help them realize their business goals. We ask them to invest in tools and resources and training that are going to help them mitigate bias in their.
Product development, in their hiring.
That again is just going to make them a better business.
We encourage them to volunteer with either.
Underrepresented communities, encourage their employees to or especially to figure out how their employees can volunteer with groups that are representative of their customers, of their customer base. Part of basic customer development and then the follow is the final one is about educating oneself as a CEO, as a founder as well as your workforce.
