【the hermitage solomons md】How to Do Well With 3 Types of Do-Gooder Investors
Many startups come to me today with dual bottom-line goals: Thethe hermitage solomons mdy want to profit
and
fund a humanitarian bent. They’re often inspired by Warby Parker, the hip-eyewear seller that donates specs to people in the developing world. I salute these founders’ intentions, but they may not realize how hard a social mission slams into investors’ short-term expectations. As a venture capitalist, I almost always have to take a pass. But the well-intentioned aren’t out of luck: These are three potential paths they can take.
Benefit Corps.
They’re commonly known as B Corps, and they bake in protections from investors who want to compromise a startup’s social conscience in the pursuit of maximizing shareholder value. If you make yourself a B Corp, investors know what they’re in for when they buy in. How does that play out? We’re all finding out together: B Corps have been authorized for only a few years in most states. (Warby Parker is one of them.)
Low-Profit Limited Liability Company (L3C).
Like B Corps, L3Cs enjoy protection from activist investors -- but it’s their unique access to capital that sets them apart. They act like a B Corp in purpose but enjoy the benefits of a nonprofit in tax structure. That means they can legally receive investments from large mission-driven foundations that can invest only in nonprofits. Foundations may prefer putting money in L3Cs because it enables them to pursue their mandate while hopefully earning a return.
Impact Investors.
These investors are often ideal. Usually, they take the form of high-net-worth entities such as corporate or personal foundations -- the Gates Foundation or the more recent Chan Zuckerberg Initiative, for example. They’re more interested in advancing a cause, which means they’re more tolerant when purpose starts to trump profits. But beware: They may be so taken by your cause that they disregard your stability. Other investors will notice this and may stay away.
So good luck, do-gooders. Don’t despair if your pitch falls flat on Sand Hill Road. Just remember this: It’s a lot easier to save the world when the bottom line is strong.
View comments
下一篇:Gaming platform Roblox acquires Imbellus assets ahead of IPO
相关文章:
- CME Group (CME) Reports Soft May Volumes, Shares Decline
- Insider Buying: The Domino's Pizza Group plc (LON:DOM) CEO & Director Just Bought UK£201k Worth Of Shares
- GBP/USD Daily Forecast – Consolidation Around 1.2400 Continues
- What Kind Of Shareholders Own Mitek Systems, Inc. (NASDAQ:MITK)?
- Cargotec completes the ownership change of joint venture in China
- 10x Genomics to Present at the BofA Securities 2020 Healthcare Conference
- CRON INVESTOR FILING DEADLINE: Bernstein Liebhard LLP Reminds Investors of a Filing Deadline in a Securities Class Action Against Cronos Group Inc.
- Is KB Financial Group, Inc. (KB) A Good Stock To Buy?
- Italy opens borders ahead of neighbors, beckoning tourists
- Chromadex Corp. to Host Earnings Call
相关推荐:
- Lam Research unveils improved tool to make 3-D chips for phones, devices
- Why Is Vornado (VNO) Up 1.7% Since Last Earnings Report?
- The Benchmark Company Announces Upcoming Technology One on One Virtual Investor Conference
- The Best Places in Every State To Live on a Fixed Income
- Key Things To Understand About Peyto Exploration & Development's (TSE:PEY) CEO Pay Cheque
- EPR Properties: 3Q Earnings Snapshot
- How Much is Wisdom Education International Holdings Company Limited's (HKG:6068) CEO Getting Paid?
- Realogy Holdings Corp.'s (NYSE:RLGY) Intrinsic Value Is Potentially 88% Above Its Share Price
- Were Hedge Funds Right About Mostly Avoiding Marsh & McLennan Companies, Inc. (MMC)?
- US warns 7 companies over fraudulent coronavirus claims
- Former California pension CIO scrutinized for China ties was highest paid state employee: watchdog
- Has TerraForm Power (TERP) Outpaced Other Utilities Stocks This Year?
- Westland Insurance Acquires Diamond Insurance Agencies in Alberta
- EXCLUSIVE: Frédéric Arnault Gears Up for CEO Role at Tag Heuer
- As Currency Values Deflate, Gold Sees Bright Horizon
- Shipping Marketplace uShip Lays Off 65 Employees
- 5 Video Conferencing Stocks to Ride on Coronavirus Commotion
- Helius Medical Technologies, Inc. to Present at Upcoming Investor Conferences in November
- Portugal says unacceptable to block EU recovery funds
- Green Stream Highlights Recent Video Presenting Company's Unique Solar Energy Solution