is to accelerate the flow of capital to enterprises that create innovative, market-based solutions to inequality, poverty, and other social problems and in doing so amplify their total impact.
In addition to raising and deploying a venture capital fund for emerging social enterprises, we are committed to collaborating with peers, contributing thought leadership, sharing our experiences, and creating innovative products and processes that enables the market for socially minded capital to flourish. Good Capital is actively building a community of people who are passionate about creating positive social change through market forces. We connect like-minded investors to one another and act as a conduit for capital—both human and financial—to flow to worthy social enterprises.
We believe in using the power of the market to address profound and seemingly intractable social issues. GoodCap is a bridge between two powerful forces: traditional philanthropy and traditional investment. We balance the social commitment and activist orientation of the philanthropic world with the risk taking and rigor of the investment and business worlds.
Traditional philanthropy often does not address the needs that growing organizations have for expansion funding. Even if it did, there is a greater need for capital than there are philanthropic dollars available. Conventional funding sources such as venture capital and private lending, on the other hand, are built upon the singular focus of maximizing profits, which is ill-suited for the multi-bottom line focus of social enterprises. This is even true of mainstream socially responsible investment, which prioritizes financial returns over social impact and is relatively risk averse.
Our Investment Strategy
is based on the belief that with the right kind of capital and engaged expertise, it is possible to create profound social impact alongside financial and economic value. Though this strategy is novel, it is not unproven: having multiple bottom lines is not unusual in the venture capital world. Corporate venture capital, for example, seeks to add strategic value to a business as well as produce positive financial returns. Good Capital builds social as well as financial value through its investments. The two are not mutually exclusive, and in many cases one reinforces the other.
In this video, social entrepreneurs, investors, and other guests at a recent Good Capital event answer the question: “What is the promise of uniting social capital with social enterprise?”