What are the primary criteria for investing in the social space?
The potential for significant social impact, financial sustainability and scale are the distinct features that a fund manager looks for. Companies need to make a product or deliver a service that addresses a critical need at the bottom of the pyramid. Also, market size is ultimately what determines business scalability. A great innovation in a niche market has limited value unless it’s a big niche. Even in serving the base of the pyramid, it’s important to have broad relevance. Apart from that, a clear business model that shows potential for financial sustainability in a five-to-seven-year period and has ability to cover operating expenses with operating revenues. Presence of a strong and experienced management team, with a will to grow a sustainable enterprise with positive ethics, scores well in the social investing space. What kind of projects does Acumen look at? What are the various financing options available? Acumen Fund invests patient capital in a variety of institutions refle
