Even a modest amount of sustainable investing and socially responsible investing in the form of venture capital allowed Ashoka to generating significant SRI investment returns, simply from the principles of values investing, socially responsible investments, SRI, and social investing.
Disproving the myth that social change is prohibitively costly, socially responsible investment venture capital firms have demonstrated that a small seed can grow into powerful social leverage. Ashoka , considered the first socially responsible investing venture capital firm, has proven that social change only needs an initial investment of $0.66.
Funding one social seed at a time
Although Ashoka’s business model is different than the traditional venture capital firm, its fundamentals remain the same: find an opportunity with great potential and invest in its development. However, where Ashoka differs from VC firms is that it seeks out social entrepreneurs early in the game, giving them the financial ability to develop their powerful theories and changes. Their social investing venture capital comes in the form of living stipends given to their Ashoka Fellows who have powerful ideas – at a time where sustainable investing funding is the most critical for enacting change.
Social VC successes
Indeed, for only $0.66 per student, Ashoka invested in Rodrigo Baggio’s efforts in developing the Committee to Democratize Information Technology (CDI), which empowers at risk youth in gaining access to working skills. Baggio’s endeavor created 200 self-managed IT schools in the urban ghettos of Brazil, with over 75,000 students trained through these schools. Turning at risk youth, whose limited job opportunities otherwise involved drug trafficking and mafia activities, into professionals with IT skills only required the venture capital of $50,000. Now, CDI will be opening schools in other countries, with powerful partnerships with companies such as Microsoft and AOL – all from the initial socially responsible investment of $.66 per student.
Values investing $20,000 into Dr. Vera Cordeiro, Ashoka funded the development of Renascer, a program which treats poverty-stricken children who have acute medical illnesses. By providing these children with the critical follow-up care after surgery, Renascer has treated 11,000 children in 11 hospitals throughout Brazil, and it has reduced the readmission hospital rates by 60%. The success of her program has caught the attention of the international community, including implementation in South Africa.
Pretti Pai Patkar, funded with $9,000 in sustainable investing venture capital from Ashoka, developed Prerana, an organization dedicated to breaking the patterns of poverty and sexual exploitation in India through educational and working skill access. Working in one of the main red light district of Bombay, Prerana has successfully enrolled in school almost 100% of all of children whose mothers work as prostitutes – taking the first step in breaking the vicious cycle of poverty.
The power of socially responsible investment
Ashoka is a prime example that even modest social investing with venture capital can spur significant social changes and socially responsible investment returns. By taking business principals and infusing it towards social good and sustainability, socially responsible investing can make a significant impact on human, community, and environmental welfare. It certainly does not take a tremendous amount of money to boost the rising tide of international welfare – and it can start with one socially responsible investments portfolio at a time.
Change the world with SRI!
Although the average investor does not have an opportunity to work with socially responsible venture capital firms, you can still make a tremendous difference! More frequently, individual investors are taking a stance – against major corporations. Whether you engage in shareholder advocacy, or simply divest from companies that do not practice corporate social responsibility, your actions impact the environment and our communities. Regardless of how small your socially responsible investment rock is, it still makes a big ripple!
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