Over the last eight years at Acumen Fund, I have been on the receiving end of roughly one or two requests a week for informational interviews about working for Acumen Fund or "becoming an impact investor". As someone who has always wanted to be the alumnus that a student could look up in the University directory, or that friend of a friend who actually returns the phone call, I've tried to be responsive (perhaps too responsive). I have very much enjoyed "meeting" literally hundreds of emerging leaders to hear their stories and to share my perspectives.
Unfortunately, with a shift to a new start up, I have had to curtail these interviews significantly and will for the foreseeable future. So I thought I would use this forum to share what I often find myself repeating to people interested in becoming an impact investor or getting into the social enterprise field. Obviously, the generic advice that follows is no substitute for the thirty minute conversation with specific recommendations of who to talk with next, but here are a few thoughts for those looking to get into the field.
Before I begin, an observation: while the opportunities in impact investing and social entrepreneurship are growing, the supply of talent is vastly outpacing the demand for it. The market dynamics are such that for every open position there are literally dozens (if not hundreds) qualified applicants. And what was a bit of a Wild West a decade ago, where a portfolio manager could get hired at a place like Acumen Fund with no prior investing or operating experience,
So, how to navigate a crowded and chaotic marketplace?
First, know your hook. I often get calls from people who have never been to an emerging market and are interested in problems both home and abroad, care equally about health, education and the environment, and just want to help. From a prospective hirer's perspective, that's like having a door to door salesman ring the bell and offer "anything you might need". Slam.
If you can't convince yourself that you care about renewable energy in sub-Saharan Africa or education reform in Detroit or health innovations looking to expand telemedicine (in Africa or Detroit), you'll never convince me or anyone looking for talent. Think critically about what moves you, pull out the threads of your prior experience to weave a personal narrative that excites you and will excite the person you are interviewing with. The story may not be a perfect fit, it may be incomplete, so if your gut tells you something doesn't fit, try a new version. But you have to have some story, any story, otherwise, without a hook, it will be hard to find a place to hang your hat.
Second, realize that impact investing is not somehow easier than traditional investing. It's harder. Not only do you have to know how to do financial analysis, help businesses operate in tough environments, manage fluid and sometimes conflicting sources of capital and stakeholders, but you also have to understand mission. Social change is hard to understand and even harder to measure. People with deep investment banking experience but little to no experience with social change initiatives, or global exposure to different cultures, are usually never going to make the transition. I have seen people who are stronger on the social change dimension and weaker on the financial skills thrive, in part because it is generally easier to learn excel on the job, while understanding how change happens usually requires more time and reflection.
Third, take the plunge. Based on your narrative, pursue an opportunity that either builds on your strengths or compliments your weaknesses, but that fits with your hook. In the case of exploiting your strengths, you may hate your current job, but try to find roles that bring your supply chain experience at IBM or your product marketing experience at P&G to an early stage social enterprise that might need those skills. Interested in emerging markets but never have been? Go volunteer in (insert country of that most fits with your personal narrative) for three months with a company that could otherwise never afford someone with your experience. In fact, we designed the Acumen Fund Fellows program in large part to give people the chance to take this plunge in a structured way.
In my experience at Acumen Fund, roughly half the time that someone took the plunge to work for us or one of our portfolio companies (often for free), within three months a paid opportunity to continue emerges. And more than half of the Acumen Fund Fellows received offers to stay from the companies that they worked with. If you dive in and make your indispensable, you'll find new doors opening.
And if there you don't land someplace where an offer materializes, you are probably better off looking from within an operating social enterprise or impact investor, where news of emerging opportunities often get circulated before they are posted on job boards.
Finally, think of this as a marathon, not a sprint. The intersection between business, government and non-profits is continuously shifting. Accumulate a set of experiences that will equip you to navigate this shifting landscape for the decades to come. Don't sit on the sidelines waiting for the perfect opportunity; get in the game and you'll learn more than conducting the Nth informational interview.
Unfortunately, with a shift to a new start up, I have had to curtail these interviews significantly and will for the foreseeable future. So I thought I would use this forum to share what I often find myself repeating to people interested in becoming an impact investor or getting into the social enterprise field. Obviously, the generic advice that follows is no substitute for the thirty minute conversation with specific recommendations of who to talk with next, but here are a few thoughts for those looking to get into the field.
Before I begin, an observation: while the opportunities in impact investing and social entrepreneurship are growing, the supply of talent is vastly outpacing the demand for it. The market dynamics are such that for every open position there are literally dozens (if not hundreds) qualified applicants. And what was a bit of a Wild West a decade ago, where a portfolio manager could get hired at a place like Acumen Fund with no prior investing or operating experience,
So, how to navigate a crowded and chaotic marketplace?
First, know your hook. I often get calls from people who have never been to an emerging market and are interested in problems both home and abroad, care equally about health, education and the environment, and just want to help. From a prospective hirer's perspective, that's like having a door to door salesman ring the bell and offer "anything you might need". Slam.
If you can't convince yourself that you care about renewable energy in sub-Saharan Africa or education reform in Detroit or health innovations looking to expand telemedicine (in Africa or Detroit), you'll never convince me or anyone looking for talent. Think critically about what moves you, pull out the threads of your prior experience to weave a personal narrative that excites you and will excite the person you are interviewing with. The story may not be a perfect fit, it may be incomplete, so if your gut tells you something doesn't fit, try a new version. But you have to have some story, any story, otherwise, without a hook, it will be hard to find a place to hang your hat.
Second, realize that impact investing is not somehow easier than traditional investing. It's harder. Not only do you have to know how to do financial analysis, help businesses operate in tough environments, manage fluid and sometimes conflicting sources of capital and stakeholders, but you also have to understand mission. Social change is hard to understand and even harder to measure. People with deep investment banking experience but little to no experience with social change initiatives, or global exposure to different cultures, are usually never going to make the transition. I have seen people who are stronger on the social change dimension and weaker on the financial skills thrive, in part because it is generally easier to learn excel on the job, while understanding how change happens usually requires more time and reflection.
Third, take the plunge. Based on your narrative, pursue an opportunity that either builds on your strengths or compliments your weaknesses, but that fits with your hook. In the case of exploiting your strengths, you may hate your current job, but try to find roles that bring your supply chain experience at IBM or your product marketing experience at P&G to an early stage social enterprise that might need those skills. Interested in emerging markets but never have been? Go volunteer in (insert country of that most fits with your personal narrative) for three months with a company that could otherwise never afford someone with your experience. In fact, we designed the Acumen Fund Fellows program in large part to give people the chance to take this plunge in a structured way.
In my experience at Acumen Fund, roughly half the time that someone took the plunge to work for us or one of our portfolio companies (often for free), within three months a paid opportunity to continue emerges. And more than half of the Acumen Fund Fellows received offers to stay from the companies that they worked with. If you dive in and make your indispensable, you'll find new doors opening.
And if there you don't land someplace where an offer materializes, you are probably better off looking from within an operating social enterprise or impact investor, where news of emerging opportunities often get circulated before they are posted on job boards.
Finally, think of this as a marathon, not a sprint. The intersection between business, government and non-profits is continuously shifting. Accumulate a set of experiences that will equip you to navigate this shifting landscape for the decades to come. Don't sit on the sidelines waiting for the perfect opportunity; get in the game and you'll learn more than conducting the Nth informational interview.
No comments:
Post a Comment