IMPACT INVESTING and PATIENT CAPITALISM
Get a taste of why Patient Capital is the just desserts to helping wāhine-led pakihi triumph
Investment, women, and Patient Capitalism
“Patient Capitalism is a way to change the status quo for women and investment.” Rebecca Caroe, August 2023.
Jacqueline Novogratz, founded Acumen. Microfinance and author of “The Blue Sweater: Bridging the Gap between Rich and Poor”. This book was recommended to me from my AcademyEX peers in my initial exploratory phase, and I appreciate the perspective. I considered the implications of Microfinance in January 2023. The downside of microfinance is the potential to push vulnerable communities into deeper poverty. However, Acumen discusses Patient Capital. This report: Investing as a Means sheds insights on how a 20 year strategy focused on ‘change’, as opposed to ‘return on investment’ has transformed impact investing for good.
The place for patient capitalism is to change the paradigm within which we value our entrepreneurs. Our current mindset, mine in particular, is strangely masculine, with a ‘return on investment’ (ROI) attitude. Building sustainable businesses, and the touted ‘Unicorns’, have long been my preferred strategy for business, with ROI key. What I’ve discovered during this discussion is that my strategy has been built in a male dominated business world. This is the chance for me to positively triumph wāhine and women-led entrepreneurs and for me to understand and start to challenge my core values in business. That though having strong financials are helpful, they are not the core pillar or goal for a ‘successful’ pakihi.
Women founders deliver so well because they don’t quit, there is an intrinsic resilience, and patience. Their returns may not be instant, it could be 5 - 10, twenty years plus. And the returns are not necessarily measured as profit. There are environmental, cultural, and social impacts that are greater than just an economic return. When we prioritise our perspective, from a male dominated ‘return on investment’, to impact over profit we start to appreciate and VALUE these enterprises, and entrepreneurs.
Solutions
I intend to prioritise impact over financial returns in my own pakihi. I want to make representation of wāhine obvious, and eke out space for us in the web3 space and business. I want wāhine-led pakihi to triumph in growth and scale with support that is lightyears ahead of the current status quo. I still believe that there is a technological solution that will service impact investing. There are gaps in education, policy and regulations, but together with impact as a priority, I believe my solution will enhance growth and scalability.
Happy innovating!
Sophie