Venture Capitalists can generate outperformance by focusing on environmental, social and corporate governance (ESG) and impact investing. That’s according to Sarah Cone, founder of Social Impact Capital, a New York based VC firm focusing on “teams doing good with technology.”
Her limited partners are not (for the most part) typical ESG investors; most are not interested in the ESG’s broader themes. However, those LPs have come to accept Cone’s thesis that social impact is becoming a competitive advantage for firms like hers. She seeks out a Return on Investment (ROI) first within the space of entrepreneurs who are trying to have a positive impact beyond their balance sheets. Her philosophy is that successful companies can do more to move the needle of change for our daily lives than almost any other field, including government and politics.
We discuss her early days working in firms like Google and Amazon, and how she was mentored into venture capital at eBay founder Pierre Omidyar’s VC firm.
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Next week, we speak with Bruce Van Saun, Chairman and Chief Executive Officer of Citizens Financial Group. CFG is the bank that (among other things) funds most of the iPhone purchases or leases to consumers.