I want to bring a few people to the stage right now. These are not by a long shot the only people who have been responsible for making SOCAP happen. There are, there's a very tiny staff and then a lot of folks who are volunteering, who have proposed sessions, who have put together sessions, who are helping you find your seats, who are guiding you to different places, who are running to get coffee for folks who need it and making this thing run, and they're called the volunteers. They are wearing gray t-shirts. There is one back here at the exit. He's waving at you and he has on a gray t-shirt with this great mandala on it. So when you need something, look for someone in a gray t-shirt that says SOCAP and they should be able to help you. I want to bring on to the stage five very important people who have worked very hard to make this event what it is today and want to introduce them to you. We have Lindsey Smalling who is the director of programming and Lindsey, you'll see her face a lot of places but she is the person who has put together almost every bit of the content. A new person on our team this year is Jamie McGonigal who's our director of business development and without his work we would not be here. Absolutely. And Justin Bellamy, Justin Bellamy from JB Marketing in Asheville, North Carolina is our director of marketing and his team have brought all of you here, whether you know it or not. Then two other folks who are on this team, Tim Sorens who is the director manages the meaning track at SOCAP and Lizzie Zellerbach Ruffer who works with Tim and they are not only working on SOCAP but they are working on an event called Neighborhood Economics which will be in Cincinnati November 17th and 18th and if you want more information about Neighborhood Economics see one of them or go to the website neighborhoodeconomics.org, thank you. So thank you very much. We'll be introducing some more folks to you who have helped with SOCAP but we want to say a special thank you to these five. This morning when Kevin and I were talking with Tim Sorens actually Kevin was telling us a story about somebody who came to one of the SOCAP events and actually went home, made a difference, invited a group of folks here and a whole cadre of people from her community are here and they are going back to change lives in that neighborhood, in that city that's very devastated by the economics that's going on in this country right now and Tim and Kevin and I were talking about how many lives are going to be changed in this country and around the world because of the work that you all are doing when you leave this place and we want to tell you how proud we are and how humbled we are to be able to bring you all together and to be a part of the story of changing the world that each of you is living in your own lives. So thank you to you for being here but more than that thank you for the work that you do in your hometowns and around the world. Now Kevin is going to come to the stage and spend a little time with us reflecting on where we've been and an overview for not only the next four days but a bit of a reflection about where we're headed with this thing called impact investing and social enterprise. Welcome to the stage Kevin Jones. Thank you. Welcome to Socap. This is our 10th and largest conference by far with 2700 people here, 500 more than last year from 70 countries, 10 more countries than last year. We've grown more and faster than other conferences in the space of impact investing and social enterprise because of one key design principle. It's that one thing we do different from everybody else. While other conferences pride themselves on getting the right person in the room, we've always been about an introducing you to the valuable stranger, the unlikely ally where others use the metaphor of the summit and try to make sure the pre validated and the powerful and the right places around the table. We use the metaphor of an oasis where people from isolated caravans meet in a space between the silos and people come out of their tents to that surprisingly abundant place right here in between where you meet the valuable strangers, the unlikely allies, potential partners, investees or co investors you would not have found on your ordinary path. Now, speaking of valuable strangers, we're really thrilled with all the cohorts from around the world, who've come here to learn and share what they know with us the 30 or so people from Japan, the 40 mayors and angel investors and techies who were part of the Nordics Go Socap, the Latin Socap that had their own regional pitch session yesterday, as well as our partners from Sandcap and all the other people from India. We're expanding into looking at public companies this year. And we're delivering funded research on divest invest that outlines how you or your foundation can outperform the market by investing in public companies that are free of fossil fuels. That's an area we're going to go into more as we go forward. We want to help people put all their money where their heart is and get a good return doing it. A big sign that this market is evolving is something we're calling the soda initiative, the Socap social capital data commons. Half a dozen digital platforms for impact investing and social entrepreneurs have gotten together to share the key kernel of data, the definition of what an enterprise is. Now their agreement to share data will improve investors due diligence and assessment of comparable companies. The collaborating pioneers include Artha, working in India and South and Central America, SVX, working in Canada, the US and Mexico, impact IQ, start grid, the resilience exchange, and Socap itself. It's a big step. I want to describe it. People have been agreed for years that this is the kind of thing that needs to be done to help us coordinate between our respective silo digital platforms. This year, we've done it. It matters and we'll be adding other partners soon. Platforms beginning to interoperate and share data is a phase shift in the market. The economist Ronald Koch said markets evolved through three phases from discovery, figuring out who's doing what, kind of where we were in 2008, to cooperation, where there's one off agreements, to coordination, where everybody agrees on a signal and it's automated. That's the space where railroads and stock exchanges play. And the SODA initiative is in that space of coordination too. It's analogous to the time when railroads agreed on a gauge for their rails and you didn't have to offload freight from the Erie to the Illinois central. It's a small thing that will reduce a lot of friction and enable big things to build on top of it. It's an essential agreement, like when they set up internet protocols. It may sound complicated, but it's the kind of thing that will make it easier for entrepreneurs and investors to put their money where their meaning is to create the world we need in the face of climate change and wealth disparity. Socap is a global conference of people using business to make a difference, fueled by investing, layered increasingly with philanthropy and some smart public money. But it's a convening of people working in particular places. In the smartest places, all those things come together in a focus we've labeled neighborhood economics. In our neighborhood economics track, we've got sessions about how that's happening in New Orleans, Detroit, Vancouver, Louisville, Kentucky, and Providence, Rhode Island, and how they made that happen. Usually they're finding a way to pay for a community quarterback. The person who connects to the dots and helps create the connective tissue in the local economy, acting like a cross between a culturally literate merchant banker and an entrepreneurial community organizer. It takes a new mix of philanthropic, public and risk capital and no interest loans to entrepreneurs who don't have collateral to make this work. And it seems to work best in a community. People working in the local economies, the neighborhood-based inclusive economies can see what they need to get done to create places where their kids will want to move back. They get over their dogma when they can think and act locally. That's what we're focusing on that we call neighborhood economics track this year at Socap and in the follow-on event in November in Cincinnati, where we're putting those ideas to work. It's business building wealth-creating opportunities in marginalized neighborhoods. It's not charities. It's business creating wealth- creating opportunities in marginalized neighborhoods. Now, we're intentional about valuable strangers at Socap. It's our theme and our design. But we have to become aware of it to take action on it. We first started looking at gender inclusion about four years ago, and this will be our fourth conference where no panel has all men on it. And this time we're adding a new question we want to be just as intentional about and apply consistently in the coming years. Why is it that impact investors have put more dollars to work on investments for good in Africa than investing with African Americans? White American impact investors don't run into their politics or their prejudices if they're jumping into the global hotbed of financial inclusion and mobile money in East Africa. It's time in a world where black lives matter to look at how impact investing is and can be part of the solution. It's not charity. It's finding opportunity for wealth creation through a mix of entrepreneurship and investment. That's a question we're going to keep asking. We're bringing in people who are doing it, and we want to figure out how to do it better and more cooperatively. So there's a lot packed in over the next three days. This is our biggest conference, and we think you'll agree it's our best. Welcome to Socap. Thank you. Thank you, Kevin. We're thrilled to have Gar Alperowitz with us back after having been with us a couple of years back. Gar has over the life of Socap and someone who has shaped our thinking. And this year he is back to introduce some of the new work that he is doing as co-chair of the next system project and introduce Gar. We have a video and then he and a group of folks who are working with him will come to the stage. So let's look at Gar's video. Society's civilizations in some sense are like our bodies. If there's something systemically wrong, it's manifesting all over the place in all our organs. And that seems to be what's going on in our world at the moment. The system is failing all around us. Our infrastructure is falling apart. Our jails are full and can't hold more people. Our young people are burdened with a trillion dollars in student debt. We're in a heap of trouble. When the temperature of the earth is starting to rise, that's a very bad sign. Our earth is running fever and it's running it because it's sick in many ways. In a country like the United States, the fact that anywhere from 45 to 50 million people are hungry, this is a problem. We can't go on like this. We can't keep moving toward climate catastrophe, nuclear war, persistence of inequality, poverty, famine. There is a systems problem. These are not one-off issues. They are interconnected and we have to look at the system as a whole. It's time to talk about alternatives. It's time to talk about what's next. We need to be aspirational and be clear about the vision of the world that we want. What is the system that humanizes us? What is the system that opens up our imagination of possibilities of cooperation? Nothing is more important right now than to discuss how can we bring about this change. As systems fail, individual and community creativity explodes and that's what we have seen. People in this country are solving the problems themselves. They're coming up with new models and strategies and within those models and strategies are the kernels of a systemic way to move forward. Land trust. Cooperatively owned businesses. Sustainable energy. State-owned banks. Urban gardening. Urban farming. These small successes taken together are a proof of concept that this can happen on a larger scale. We're compelled to search for alternatives not just analytically but in how we live and what we do, how we organize our daily lives and that has tremendous potential. Our actions and our imagination have to match the magnitude of this problem. We have to get out of our comfort zone. We must think with courage. All bets are off in terms of our previous thinking. Our ways of thinking about economy and our ways of thinking about politics have proven an abject and utter failure. The good news is we have no choice but to adopt revolutionary thinking. I like that. That's the exciting part about this moment. When there are no rules then people have freedom to invent and to create new things. I have no doubt that we can create a better America. If the people who cared about these things really joined together to do something about them, anything is possible. The biggest worry for me is that we don't try, is that we don't push for what we know is right, for what we know is possible. It's time for everybody who cares about this country and the future of the planet to do something about it, to get involved. We can actually do better. We can build a better system that's not impossible. It's a very American thing to do to build a new system. It's a challenge. We can do it collectively. Neighborhood by neighborhood, step by step. I think that the world that we're on the verge of is bright and beautiful and interesting complex, local, interconnected. I hope we get there. It's time to talk about what's next. Please come and sign our statement at thenextsystem.org. Good morning. I'm Garry Alpervitz. I'm co-chair of The Next System Project. We've produced that film. And I'm here to pose a question to you. Why would it be that Kevin asked us to start this plenary session about changing the system? And what in the world does that mean?  Why in the world are we talking about changing the entire system over time? And then the second question is are we up to that? Can we move from projects and strategies and new adventures to the system question? Now there's different ways to get at that, but my favorite way of looking at it is the people who started Davos have asked the question publicly is capitalism over? Other people are saying is socialism over and getting a definite answer? The Academy of Management, the U.S. Academy of Management, 10,000 management specialists, professors of business, advisors of major corporations last year held their major conference on the question are we ending reaching an end both to capitalism and socialism? Well that's what used to be called a heavy heavy question. But I want to throw it to you and let it sit in your lap again and the question then is what does that mean for our lives? And specifically looking down the gun barrel of the next three decades what might be the evolution of the work each of us is doing that might move from where we are over time to larger and larger issues and scale? So just that's the question and I think if you look at what Kevin's been doing the whole progression of SOCAP has been moving in that direction and I think he's going to be talking more and more for instance about worker owned companies and transformations of a different kind. That's step one. Step two is recognition a little bit of some of the reasons people are talking that way and just a few statistics. I used to be a college professor so you have to allow me. There are a few things and here they go. These are United States but they're paralleled in many parts of the world. The share of income of the top one percent has gone from 10 percent of the income to 21.4 percent of income over the last 20 years. It has doubled the one percent on top. The one percent on top has something like 400 people at the top. 400 people you could get them in the front half of this discussion have more wealth now than the bottom 180 million people taken together. The concentration of wealth in this country is technically medieval. But I said that once and a medieval professor came up to me and said no you're wrong. It was never that concentrated in the medieval era. That means we're living in a system the whole larger system in which something is going wrong that has to be corrected by building somehow from what we're doing over time to another level. And the trick here is whether we actually ourselves begin to see it that way rather than what I call projectism. I am strongly in favor of projects. We get nowhere without projects and if they only stay at projects we don't develop. So that again is another way to ask the question personally where might we take this over time if we got serious about the next direction and moving the ball forward. So let me give you a few more statistics and not many more because I'm going to stop very quickly. Prisoners in American jails are eight times per capita more than any other country. We are more concentrated in prisoners in jails now than the Soviet Union was. And the number of blacks is six times the number of whites in those jails. Again an indication of the depth of this of the problem that is a systemic problem and not simply a problem of projects or policy or politics. Those are the kinds of questions we need to scale.  Where does that take us? How do we begin to think forward? There's two analogies that I'd like to suggest to you in terms of how individuals might grapple with this problem. My heroes my real heroes are the people working in Mississippi building up the civil rights movement that became the civil rights movement in the 1930s and 40s. You don't know their names most people don't know their names those are people who risk their lives in the quiet unknown doing projects developing forward laying down the groundwork upon which the great civil rights explosion occurred 25 years later. So if you can see yourself if we can see ourselves not only as doing projects but asking the question how we might build forward over time laying groundwork step by step changing ourselves as we go so that the next great explosion becomes transformative of the system that's producing those kinds of numbers. This is happening all over the world the numbers are different but the same question how do we it is a problem not only of hard work it's a problem of self identity when you look in that mirror in the morning and see that brick lying in your lap about the system how do I build and see and think through that. Another way of thinking about the system problem that gives a different handle on it if you look at the great reforms of the civil of the new deal era the things that change social security labor law pensions all those things they did not come out of nowhere they came out of the work of people like the people in this room 10 and 20 years earlier who were working in the state and local laboratories of democracy building forward over time proof of concept one of the people in the film said beginning to refine and developing new concept expanding and transforming and laying groundwork so that when the time was right much larger change could occur that's another way to think about how we relate to the system crisis not just the problem that we're facing in the projects that we're doing and the exciting work that's going on and it is again strange to say a problem of self identity who are we in the matter who is the person in your seat in the matter how do we self identify how do we expand and how do we move in a way that I think is interesting that Kevin has moved both from this direction the whole so-capped direct direction backstage he just told me about a large venture in which they're transforming to worker ownership not just social investing so there are broad broad perspectives on all this it also means going to scale and considering difficult things happening around the country our own group the democracy collaborative has been heavily involved in a big project in Cleveland Ohio where there are a number of worker-owned cooperatives one has the largest urban solar installation in the country another one is a huge industrial scale laundry uses less water less heat than any other laundry in that area and the third one is the largest urban greenhouse in the United States three million heads of lettuce a year so we're taking it to scale and also we're finding support from big universities anchor institutions hospitals who are now more and more willing to come come to play and begin helping develop a scaled up direction that's only one we're going to hear about several other directions that are now happening from the rest of the panel but I want to give you the sense of scaling and tomorrow morning there is a very interesting group going on that will be speaking on this subject in the impact investing and what universities and hospitals are doing around the country Cali Norris will be there speaking as well and I urge you to go to that afterward and you'll get a sense of what's happening with the big institutions beginning to move in this direction is supportive and I'm sure many of you know about that but the issue of scaling up becomes part of it and laying down that groundwork step by step pre-new deal pre-mississippi building towards where another leap can happen and again it goes back to what is it we're doing are we doing projects yes are we doing good projects yes are we self identifying with a sense of changing that entire system that's producing these kinds of statistics that is the large order question I want to take you one further step down that line I think there is some possibility also ultimately of moving this into movement politics movement development politics in general and that too is part of the larger direction that's beginning to build and you find at this conference as well SOCAP did not actually have movement building and politics as part of the discussions that too is entering the range of what might be possible at the national level let me also remind you and again thinking down the line I'm a historian and a political economist did you happen to notice that at the last big crisis we nationalized the big banks and we nationalized Chrysler in General Motors somehow very large institutions are likely to be in play no one knows what to do with large institutions what is it a system that has big big institutions and how does what we learn and the projects we are developing allow us to think forward to those moments that are going to happen and how do we think about the prototypes that might cast the vision of a system design something that takes us beyond the failing systems of socialism and corporate capitalism that is the big big set of questions that if you stand back from this kind of a gathering pose themselves inevitably if you allow that to happen if you would look in the mirror in the morning and say is that what I personally am up to is that how we might go forward is that possibility real so I ask you that both as a historian and a political economist to consider what we're doing here today and particularly this panel where you'll hear some very exciting work going on that takes the next step down that direction to pose it in the largest frame and to keep stretching it out and always asking the question with that big brick sitting in your lap the system as a whole really us maybe in our time in history allow that to seep in and I'm confident knowing what's happened at SoCAP and knowing the kind of people who are already in this room that that kind of a challenge is the kind of challenge that begins to move the ball forward in an exciting way taking all of this to a whole another level so that five years and ten years out the meetings at SoCAP will be ten times this big and we will in fact be a movement that's beginning to rise to that particular question thank you very much I want to introduce Angela Lover Blackwell who is CEO of PolicyLink thank you Gar thank you all for being here thank you for whatever it is that made you think this is the place you need it to be we have to begin to talk about changing the system because if we don't change the system we'll be back at this point again no matter how much incremental progress we make as we try to redefine the way that we think about investment the way that we think about business the way that we think about the future Gar mentioned a couple of things I don't know if he mentioned the GI Bill but something he said made me think about it if he didn't mention it the GI Bill when we think about Social Security when we think about FHA and all it did to build housing in this nation those things had many wonderful qualities in fact they made the middle class that made this nation and allowed it to stand on the world stage with such pride but there was really a huge hole in all of those things because they didn't get to people of color the GI Bill really was for white veterans Social Security left out people who were picking vegetables and doing domestic work the FHA actually explicitly excluded black people from being able to take advantage of it and it allowed neighborhoods to develop in middle class areas that created middle class areas in this nation and locked so many people who were black out of home ownership or out of home ownership that actually could build any value for them to pull out if they needed it we're a nation in which racism has been baked in exclusion has been baked in and if we don't have a system that changes that whatever system we come up with is going to be flawed it is so wonderful that you are here having this conversation because we really need for investment and business to drive the change that we need we won't get the change without power politics and policy but in order to get to power politics and policy the nation as a whole needs to change it needs to change let me tell you what I mean there is really nothing more valuable at this moment than the diversity that defines this nation that what could be more valuable in a global economy than a world nation that has all of the diversity that is needed but we're not valuing it we're not using it we're not dependent on it we're not using it to define how well we're operating once we start doing that we're going to push for policies that allow all to participate prosper and reach their full potential once we start doing that we're going to recognize we need to have elected officials who are committed to the change that we need once we start doing that we will be able to marshal the power that it's going to take to transform everything we're living in a nation right now in which two things are defining the moment one is the toxic inequality that's hollowing out the middle class baking in poverty and making it very hard for the mobility that this nation has prided itself upon to be able to still act that toxic inequality threatens everything that we believe in at the same time that we're starting to deal with that recognize that we have to address it we are undergoing an extraordinary demographic shift we know that by 2043 the majority of people who live in the united states will be of color many people don't know that since 2012 the majority of babies being born in this country are of color and by the end of this decade 2019 the majority of all children under 18 will be of color by 2030 the majority of the young workforce will be of color as we think about the shifting demographics as we think about the economic imperative it's clear that the way forward is the way that will bring these two together allow the shifting demographics to be the asset that they actually are to be able to fuel a new vision for what it can be to all be in this together but we've got to have a plan for doing that we've got to grow good jobs and we have to do it with every investment that we're making it's not like we make an investment it's not like we engage in a big thing like the transformation of the oklan army base in oklan you can't do those things without thinking about how do you create good jobs in the process every time we spend money we have to figure out a way to create good jobs and make sure the people who need them are going to get them that includes creating entrepreneurship for people who are of color because people of color hire people of color if we need to get people of color employed we need to make sure that the employers are of color we need to build capabilities we know that we don't have the capabilities for the work that has to go forward we have to consciously invest in it and we have to remove barriers and expand opportunity remove barriers like the disadvantage that is placed on people when they come out of prison with a record we have to remove those barriers we have to stop people from being able to be cut off from opportunity just because we have had a scandalous criminal justice system and the scandal of incarceration and the label that we have put on people who haven't deserved that label we have to move that barrier we have to expand opportunity we have to make sure that this is not true anymore where you live in America is a proxy for opportunity you live in a poor neighborhood your chances are fixed before you even get started that should not be in a nation like this thank you thank you Angela Brendan Martin, director of Working World hi great thank you so I want to talk a little bit about spend a bit more on what this next system looks like it doesn't look like the current system of centralized blunt answers to our global problems the next system is local the next system is based on people in power meeting the needs of their communities and solving our problems and the video that we watched that Gar put on there was some examples or some stories told about people in power their local economy well these stories are real and I've seen them over and over again I lived in Argentina for seven years working with factories that had been closed not because the factories weren't working but because the global financial system was in default and workers didn't decided not to care about that logic and they went and took over their factories and they started running them again and with the production that they were able to do in those factories they met the needs of their communities and they themselves solved the problems of this global financial system it was in Argentina that I started the working world we are an organization that finances that brings capital to worker and community owned enterprise and I met hundreds of such enterprise who worked directly with hundreds of enterprises that pragmatically functioned to control by their workers meeting their community needs we made over a thousand investments in these enterprises I've worked directly with tens of thousands of workers and we've invested millions of dollars over 90 percent of the people who are owners in these enterprises are people of color now one of the greatest things about people controlled economy is that taken as a whole it's extremely effective 98 percent of those 1,000 investments we've made have paid off in full with proper sharing and interest in Chicago a factory that was closed for workers used to be making minimum wage with an investment we gave those workers they reopened the factory they're now helping to run that factory themselves they're making twice what they used to make my late dear friend Ricky Macklin he was born picking cotton he spent time in our nation's penitentiary system but when he died he died owning his own business the year that he died he helped sell over a million dollars worth of windows recently this year we joined together with about 20 organizations around the country that represent people in the front line people in front line communities grassroots organizations and we created a network to disperse investment not just where we can reach but where all of these front line communities can reach together this peer network can scale 10 to 100 times what we've been able to do so far but what does all this have to do with SOCAP what does all this people control have to do with this room of impact investing well if there's one thing that defines our current system more than anything else there's one thing that governs our current system more than any other force it's finance in our current system we have record corporate profits and yet a record share of those corporate profits 40% of all profits in our country are going to finance it is the most powerful force in the world which makes this room perhaps one of the most powerful rooms as an agent of change a room full of people interested in changing the nature of capital changing the nature of finance this room has the power to bring that tool of capital to those people so there's no really soft way to say what the role that capital plays in our system essentially people our communities and the planet on which we live are tools for the profit of capital the system we're building with people on the ground in that system capital is the tool it's a bright, shiny, powerful, wonderful tool but it is a tool in the hands of those people who use it to meet their community needs and to solve the problems of a global system in the last year alone the working world has moved a few million dollars into the hands of grassroots organizations who are pragmatically employing it effectively to solve their problems but this is just scratching the surface with a room like this we might really be able to make a dent and move toward that next system that Gar is talking about thank you very much let me introduce Aaron Tanaka director of the Center for Economic Democracy and the Boston Impact Initiative is this on? okay very happy to be here with all of you this is my first SoCAP it's a shiny, beautiful looking room and to be up here with friends and colleagues is a great honor I'm here from Boston and over the last three years have been working as the first managing director for the Boston Impact Initiative which is a place-based private impact investment fund we started off as a small pilot five million dollar fund and have been making equity investments and doing loans and giving grants to small businesses and cooperatives in Boston and in particular have been interested in innovating around what we as private investors can do with this capital to really leverage and build community power as was spoken about earlier and one of the exciting things that we've been doing is experimenting with a strategy of making private equity investments but then selling our shares to workers as one of our exit strategies as another way of using finance capital to build employee ownership and control before I started working at the Boston Impact Initiative though I was a community organizer I was the executive director of the Boston Workers Alliance for seven years which is a grassroots movement-building organization that represents low-income residents particularly people of color people who are unemployed and specifically as Angela was speaking about people who are coming out of prison and have barriers to employment and in that work I became truly dedicated to the question of how do we not only deal with broad-based inequality in this country but specifically working with those in communities that are already marginalized who are even at the edges of those communities themselves people who are homeless people coming out of prison folks who aren't able to get a foothold in the real economy and in that work one of the major things that I started to learn about was the connection between global capital the transfer and the globalization of capital the subsequent exportation of labor and the way in which that exportation of labor from this country has made a broad group of people particularly black Americans particularly young men of color no longer necessary for the functioning of this economy and how the criminal justice system has been built for the first time over the last 40-50 years to maintain a system of white supremacy in this country and to control a new group of unemployed workers and so as we were working in the Boston Workers Alliance to work against discrimination and past policies like ban the box in Massachusetts we also started asking the question how can we start creating jobs worker-owned cooperatives that are run by owned by people of color and specifically folks coming out of prison and we started building cooperatives this was very very difficult as some of you know and the first co-op that we built was a veggie oil recycling company that unfortunately failed after about five months of operations but we got the bug and started believing in the possibility of entrepreneurship and capital and the need for capital and so as I moved over to the Boston Impact Initiative was able to make the first loan to a 2.0 version of this cooperative called CERO we were able to give a $20,000 zero-interest loan to a business that had no collateral people had no personal assets and there were no sales but because it was so mission aligned we decided to make this loan and CERO worker owners folks who are part of my former organization then went on to raise $17,000 out of the Indiegogo campaign they used that money then to pay for the legal fees to launch a direct public offering where then over the course of a year we're able to raise $350,000 selling small shares of equity to members in the community from there now I'm working currently with Brendan to actually structure another loan and which we'll be able to give them $300,000 more for them to fully capitalize and launch their business as an organic composting company this speaks to me what some of the possibilities that are available to us as private investors as we start to think out of the box and ask ourselves what role we're playing in the broader ecosystem to help leverage and engage community members to help determine their own economic destiny and at the same time I've started to ask the question although I see the benefits and the possibilities of what we can do with private capital through our new organization the Center for Economic Democracy have been asking the question is that enough and this is something that I want to raise to you all and this might not be super popular but as one fund manager to many others in the community organizing world we have an ethic that says our goal and our job is to put ourselves out of work that is if we're doing strong leadership development we're helping build transformative policies that's the role of professional community organizers shouldn't be necessary and in fact communities can take that role and build their own power I want to ask the question to us as people who are playing this role in finance capital what is our conception of our direction what is our ethics as people who control all the capital that Brendan is talking about it's my belief that we have the possibility to be transformative in our terms and this is something that many of us are talking about but I also want to raise the question what role are we playing and democratizing the decision making to set those terms in the first place right now I think many of us think of ourselves as benevolent almost philanthropists who are using favorable low interest terms to help spark economic development however in Boston with the Center for Economic Democracy we're starting to raise the question of what does it look like to give everyday people the power to make decisions on the allocation of their own finance capital we're taking this question of how do you take participatory budgeting which has been a process that's been used across the world to allocate municipal tax dollars and instead start to apply this very same process where we say we believe in your capacity to make good decisions and believe in the truth that you know what's best for your own community and from that standpoint our goal and our question for ourselves is how do we devolve our power so that communities can make those same decisions I often say that if you don't know where you're going any road will take you there I hope that together this week that we decide that we're moving towards the collective liberation of all people and through this week in the conversations we have we build that path together thank you great awesome nice and last is Michelle Long who my good friend the director of Bali Michelle well I feel so excited now I'm not really a morning person you know that I just saw a poem but you guys got me woke up you know I mean I just saw a morning poem recently and it said coffee coffee coffee coffee coffee coffee everybody's shut up coffee and I thought that was me but now I feel good so I'm the I'm the sum it up speaker I'm the bring it home what a couple of points here and I we're hearing the system's broken I think we all know that the system's broken a new one has been called for a new one's been born the thing is systems don't change overnight it's not like we went to bed yesterday with one system we wake up tomorrow with the next there's always sparks of the emerging future that are amongst us here now at Bali our role is to accelerate the emergence of this kind of economy that serves life so we find those sparks connect them with each other because they're always fighting an old system while trying to create what's next and it's really hard we resource them nourish them and we tell their stories so others can see a path to follow with the fellowship programs communities of practice there's three three points I would share now the first is what has already been highlighted the next system the one we're moving toward must fundamentally recognize that the path we've been on of building big transnational corporations has done a really effective job funneling wealth into very few hands but the data is very clear now the best path to the most jobs and the most wealth for the most people is directly correlated to the density and diversity of local ownership per place the second thing I would say is the public markets I have done a really fine are unhealthy we're having unhealthy results from the public markets there's a study done by the international labor organization looking at 71 countries and they looked at what were the biggest corollaries to inequality in a society and they looked at the offshoring of production they looked at mechanization of jobs they looked at the suppression of minimum wages but what they found to be the number one corollary was how much what they called financialization or they also called it how much wall street activity was in that economy that's important to know doesn't have to be that way in Quebec for instance they 30 years ago took their pension funds and started to invest them in local companies in regional companies and they have estimated that they took it out of all streets started investing in their own community and they estimate that in that time they have created almost 90,000 new jobs and kept kept 85,000 jobs people households from having to move away but the pope said something recently about we've got a lot of a lot of problems you know we got a lot of things we need to fix but most of all we need to fix ourselves and so that'd be the third point I'd make one of the people that we work with is a one in our local economy fellowship program works in New Orleans and there 52% of African American men are unemployed and for all of the reasons that Angela named related to institutional racism historic and current and the number one employer of African American people in this country or other African American people and yet she's working with lots of African American small businesses and this is just one example a lot of little plumbing companies and there's going to be a big new airport coming there's going to be some new hotels coming she was getting them licensed and bonded and ready and able to access more investment and growth and they had promises that they were going to be able to have these jobs and then in the last minute somebody inside the city had a friend he got his Harvard MBA with and outsourced that whole plumbing contract to somebody who doesn't even live in that town and that happens all the time you know that the kind of transformation of the system that we need somebody said to me once when some people talk about transformation they mean vanilla to vanilla bean and I mean vanilla to chocolate and she said but what we really need is vanilla to music you know that's the kind of transformation that we need right now and I've heard the past few years of people talking about quoting Einstein's maximum no problem can be solved from the same level of consciousness that created it that what we actually need and what's been called for is an evolution in our consciousness and how we are with each other and the evolution that we need right now is the ability every every era has a kind of leadership that's necessary and the one today to solve the complex crises of today like climate change and inequality we can't do that me versus you that's what works for all of us including me it's the the ability to act from interdependence to see and feel and act from interdependence and that can be cultivated I'm going to actually share with you guys I had a epiphany at Socap two years ago and so I appreciate that but it was I don't know what you're going to think of it but I started to realize a lot of the things I've been working on for 15 years local food systems community energy community investing were becoming a bit trendy and I started to realize people were competing with each other here to save the world I actually saw people sort of jostling with each other you know I'm going to be the top of the green building pile I'm going to crush the food market I'm going to own the cooperative market and dominate the love economy and I was like wow well you know we're not going to get anything different then and the people that I've known who've been the innovators loved something they loved people they loved place they loved land they loved animals and from that place they innovated and we can see what happens you know when microfinance or free-range chicken you know when it comes into the wrong hands if you're not motivated from that place of caring if you're just going with the letter of the law of the free-range chicken you can do horrific things to animals and land and people and farmers in the name of that if you're not coming and motivated from that place of caring for each other so you may say well that's all idealistic Michelle you know we're not caring people but in fact we are we are in fact we are you know the greater good science center has done research to the past 20 years and others have too that you know for a long time we just looked at depression what makes people sad but we started to look what makes people well and as it turns out all people regardless of demographic four things make us all well we feel well deeply inside deep wellness when we feel meaning in our lives and purpose everybody has a purpose everybody's here for a reason everybody has a gift to give we feel well when we feel that we feel well when we feel deeply connected in relationship with each other we feel well when we feel an awe some reverent connection to the larger natural world like I can't believe that tomato plant gave me a tomato how does it even work you know when you feel that awe and we feel well when we've been compassionate when we see suffering and we meet it with love we all feel good after that that is who we are you know the study so interdependence is who we are that's who we are deep inside and and so we want what we need which is really awesome they've done studies that show that little babies oh I'm over time okay I just realized okay nope no I can't I can't go over time I will just say I will just say join me it is in fact the the largest the largest peaceable land transfer that's ever happened in history happened from Vinoba in India who is one of Gandhi's disciples who he just walked door to door and asked people who had a lot of land he said hey brother these people have no way to grow food you give them a few acres and they did you know that is actually who we are so let's go for that and that's I'll have time to say thank you so thank you all join us we'll see you building the next system together thank you thank you don't we love this passion that we have coming at us this is amazing we're going to take a little mental break and I'm going to welcome to the stage a dear friend of mine a guest artist this year Chuck Cannon who Kevin and I heard singing kind of randomly and actually heard him singing the song he is about to sing for us now and when I heard it it was like this guy has got to be at SoCAP that was six years ago and we finally got the schedule to work for Chuck to come and be with us so please welcome to the stage Chuck Cannon wow there's a lot more of you today than there was yesterday so make me feel welcome there you go like that trying to make money takes most of our lives and it's been long to make husbands strangers to wives until his kids don't recognize him when he comes through the door it's enough to make you wish money don't matter no more and she's got a minimum wage job for 30 hours a week yeah and her man well he left her with three hungry miles she's got to feed so she's stealing some milk from the grocery store it'll make you wish money don't matter no more we're all underpaid and we're all overwhelmed oh how I wish love was the coin of the round where everyone's rich y'all when nobody's poor yes sometimes I wish money don't matter no more how about y'all now listen you can make it the measure of how much you're worth on you can store up your treasures down here on earth where you can buy you a big boat that won't sell heaven sweet that safe harbor where the money don't matter no more we're all underpaid and we're all overwhelmed oh how I wish love was the coin of the round where everyone's rich y'all when nobody's poor in the place where the money don't matter no more pieces of silver was all that it took to make Judas give Jesus the kiss of the crook now that's a hell of a thing to become famous for just to find out that the money don't matter no more we're all underpaid and we're all overwhelmed oh how I wish the coin of the round where everyone's rich y'all when nobody's poor I can't wait until the money don't matter no more now the Christians and the Buddhists and the Muslims and Jews and the atheists the agnostic the Rastafarians the Rastrian the Presbyterian the Confucian Southern Baptist Pentecostals Episcopalians and even Sikhs and Hindus the doctor the lawyer the preacher the whore guess what we're all gonna end up with the money don't matter no more we're all wish love by the day thank you Chuck you want to hear a little bit more of his music just be in every plenary session he'll be back with us and also at 2 30 in the firehouse he and I are gonna have a conversation about money and music so come join us one quick a little housekeeping detail just stop looking at your watches we're running over we're gonna be late and it's all taken care of so don't get up and leave early to go to the next session the next session we'll be waiting for you when you get to it so we're gonna move on quickly through the rest of the program but just sit back and relax we have some great programming coming in the second half of this session so Tim Freundlich hey hello good morning I have a great pleasure of just giving you a minute or less on Lisa Hall who's gonna be our next speaker Lisa and I kind of go pretty far way back we spent a few lovely years at Calvert Foundation helping to build it first she was the CIO and then became the CEO but she's since moved on to an amazing new gig in Europe with the Brinkenmeyer family and she's running the Anthos Capital Unit and also the Scopos Impact Fund Brinkenmeyer family is it's actually an impact investment arm of the family office that does the CNA retail chain is the privately held organization that the family works with and she has she's really been digging in deep with Wharton recently and I know she's gonna share some of the findings there on some research around impact measurement which is super critical for the field but mostly I just want you to join me in welcoming Lisa she's a woman of great integrity and long commitment to the field and just a wonderful organizational builder Lisa thank you Tim thank you thank you Tim for those incredibly kind words when Tim first conceived of SoCAP back in 2007 I could not have imagined more than 2,500 social investors and social entrepreneurs under one tent in it from all over the globe it's really incredible and when Tim and I back in 2007 were much younger not nearly so wise and if I recall correctly my hair was a little bit shorter and Tim's was not nearly as or was more full than it is now thank you Tim thank you Rosalie, Penelope and all the other principals for Mission Hub you all deserve our gratitude and one more round of applause I think look at this amazing crowd I'm truly humbled to be here today and as Tim mentioned for the past two years I've been living and working abroad and it is so good to be home and while it's always great to be back visiting in the United States it's not exactly what I mean when I say it feels good to be home some call it their North Star others they're true North for me being here at this extraordinary conference in this community of like-minded souls of fellow travelers on the social capital journey it feels like home so I want to ask you all a question while I'm here back home what and who are you waiting for what is your true North five years ago I stood in the Cal Theatre when Socap was a much much smaller crowd and I stood before the crowd and said we are the ones we've been waiting for and most of you know that's not an original line it's inspired by Barack Obama who himself was inspired by poem for South African women by June Jordan five years ago impact investing was also in its infancy and there was not clarity about what to call it there were lots of terms for it and frankly I don't care what we call it what I care about is what we do as individuals as organizations as institutions if five years ago there was a lack of clarity which there was about what we call what we do then today there's even greater lack of consensus about how do we define it but let's not be distracted by these conversations of what to call it and how to define it let's focus as a community on the doing on the impact investing most of us started with the idea of a big tent and I've always been an advocate of a big tent lots of market participants welcome at the table of impact investing but I had no idea how big the tent would get and it keeps getting even bigger a big tent can be a great thing more people and more organizations under the tent brings increased sophistication and structuring as we begin to collaborate in areas like impact measurement and research in the 2015 Jin JP Morgan study led by Yasmin Saltik nine out of 10 investors said co-investors were key to their decision making I urge us all to collaborate as much as possible part of demonstrating proof of concept for us as a sector in our ability to collaborate is evidenced by investment platforms like tonic led by Stephanie Cone Rupp more people and more organizations under the tent also brings with it more complexity more scrutiny including more regulation so let's be careful as an impact investing community not to over structure not to over engineer let's not complicated if it's not necessary and let's be sure to match appropriate capital with the actual financing needs that the people that we're trying to serve no matter where you sit in the tent I still ask you who are you waiting for if it was true five years ago it is even more true today in 2015 we all of us are the ones that we've been waiting for and I love this picture of leaders from the field because it reflects the diversity of our sector in this picture there are people of different races there are people of different religions there are people of different countries of origin and I think my favorite thing about this picture is that there are men and there are women and we as a community are not serving the traditional power base the people that we are trying to give access to capital don't look like the traditional power base and we shouldn't either we have to include everyone under the tent people and professions that are different from ourselves we must do better we must be better than the traditional power base about inclusion if we want to serve those without access impact investing is on the path to mainstream even the pope is talking about it as we just heard and it's because of that diversity not in spite of it that we're on the path to mainstream the evidence includes the engagement of family offices like anthos where I am blessed to lead the impact investing initiative for one of the largest family offices in the world and if that isn't mainstream I don't know what is last year at anthos we launched the scopus impact fund in the past two years we have made capital commitments to six fund managers and one direct investment in a portfolio company these funds span the range of asset classes some are originating debt some private equity and some are doing both and we are not alone in our view that there's a spectrum of impact investing a spectrum that has been long heralded by investors like fb herron foundation led by claire miller at anthos we have an incredible team and we are not just making investments we also want to help the field of impact investing to scale by sponsoring research and by doing field building work we started off by sponsoring work on liquidity and exits and we're thrilled today we're so excited to be able to announce the release of a new paper entitled great expectations published by the worton school at university of pennsylvania I think a lot of people are actually going to talk about this study and it already has received coverage in the wall street journal which you can find on today's online edition the study says that in a certain segment of impact investing market rate returns can be achieved we started off simply wanting to know can you get exit to impact investing and when you exit is mission preserved over time and the answer turns out to be an unqualified yes you can these results do not mean that there's never a trade-off between mission and return and as practitioners in the field many of us know that the segment of the market that's trying to serve the poorest that's trying to reach the hardest to reach there will always be subsidy required and sometimes that comes in the form of lower returns and frankly that's okay we should be okay with that as a community but sometimes there is not a trade-off and I I'm not sure why it's such a controversial idea that we could generate market rate returns the idea of segmentation is one that's being researched right now in partnership with case at Duke under the leadership of Kathy Clark there are many segments in other capital markets and asset classes fixed income as an example where there's a range of risk and return from guvies to corporates to high yield and nobody complains about that the research from Wharton tells us that in some segments of the market it is possible to have both financial and social returns and we think that's a great thing because only when we can demonstrate market returns will institutional investors bring large sums of capital to the table the Wharton social impact initiative conducted this research under the supervision of the chairman of the finance department professor David Musto and Scopus was pleased to be one of the funding partners for the new report to borrow from the world economic forum and the work led by Abigail Noble in her prior role impact investing is finally moving from the margins to mainstream an objective top tier globally renowned business school like Wharton which also happens to be one of my alma mater's it's they're weighing in affirmatively on impact investing and if that's not moving into mainstream I don't know what is there are representatives at both exits of the room with hard copies of the report which we urge you to read also come to tomorrow's panel where Dr. Gesie and my colleague Dimplesani from Scopus will be talking about the findings of the report in detail so I'm coming to the end of my remarks and I've saved the best for last because our work at Scopus impact fund is about generating social and environmental outcomes our impact areas are outlined here and we've invested a lot of time and energy and resources to developing a custom impact measurement framework our framework is an impact measurement tool developed in partnership with Bridges impact led by Clara Barbie this tool will allow us to be both specific and to be measurable about our impact intentions in closing I want to remind us all that we are the ones that we've been waiting for I look out on this incredible crowd I'm so glad to be back home and I'm confident that no matter how large the task ahead may be that together like this determined woman on her bicycle we not only can we will and for myself like these smiling girls so filled with gratitude that remind me of a time when both Tim and I were much younger and not nearly so wise I too am grateful for your time and attention today thank you moment that we're getting bigger we're getting smarter about what works and if you look around we're all here together which is really amazing so the silos come down at Socap and these next two talks really show that we've seen increased participation from government and international development sectors over the last few years and USAID has been an amazing partner to Socap I'm excited to bring to the stage Ann May Chang who's the executive director of the US Global Development Lab at USAID she's a picture of cross-sector participation she's worked in the international NGO sector in the corporate sector and now in government I'm really excited to hear her remarks and I want to welcome Ann May good morning last week I was in New York City where leaders from around the world 193 of them came together at the UN General Assembly to adopt a new ambitious vision for the world's future the sustainable development goals actually do I have a clicker on my slides I don't see a first slide sorry about that so these 193 leaders came together to adopt the sustainable development goals sorry and for the first time in the world's history I believe we are within reach of the overarching goal which is to end extreme poverty by 2030 social entrepreneurs are vital to achieving this goal of ending extreme poverty they drive economic growth by using market-based approaches to address issues around poverty but as important as entrepreneurs have been in driving growth and innovation in the United States they're even more essential in developing countries where there's almost a billion youth who are either unemployed or underemployed in low-income countries small and medium enterprises contribute 78% of full-time employment as compared to 66% in in high-income countries and every dollar invested in a small and growing business on average generates more than $13 in the local economy through the benefits to suppliers customers and employees of course in addition to generating economic growth social enterprises generate social impact by providing poor customers with access to essential goods and services that are normally out of their reach whether it's clean water energy health care education or financial services the global the US global development lab is the newest bureau at USAID which is the US government's international development agency we launched the the global development lab a year ago april to use science technology innovation and partnerships to and to transform international development by identifying faster better cheaper and more sustainable solutions we do so by casting as wide a net as possible to find the best ideas for innovations tools and approaches that are disruptive and then we use hard data and fast iteration to develop the most promising ones and finally we work across USAID and our partners to mainstream proven solutions the lab is part proud to be a part of president obama's spark initiative to bring a billion dollars of new investment to the next generation of entrepreneurs around the world USAID itself has invested over 900 million dollars in to benefit social entrepreneurs in developing countries and there's three areas that the lab works in that i'll talk about first of all the lab invest directly in entrepreneurs themselves we believe that donor support is essential to being catalytic to help these early stage entrepreneurs get off the ground refine their models and get to the point where they can attract commercial investment for example through our development innovation ventures program or div we provided initial hundred thousand dollar seed grant to off-grid electric in Tanzania this enabled them to supply their first thousand customers with clean affordable and accessible solar energy based on their success we followed on with a million dollar grant these grant enabled the entrepreneurs to refine their business models prove their capabilities and social impact and gain customer traction based on that off-grid was able to let leverage this lab's initial investment to raise 16 million dollars in private equity and an additional seven million dollars from ifc and i'm pleased to report that as of july more than 50 000 households in Tanzania now have access to electricity because of off-grid electric the second area that the lab works in is that we partner with investors accelerators and intermediaries that support the broader entrepreneurial ecosystems it's clear that funding alone is not the only challenge for small and growing businesses they often lack talent management and business development capabilities that are needed to grow so our partnering to accelerate entrepreneurship initiative or pace works with intermediaries to address these challenges faced by small and growing businesses by providing access to acceleration services and blended financing as of june the 35 direct investments we've made in pace have generated 7 000 new jobs earned 15 million dollars in new revenues and raised 30 million dollars in additional capital finally the third area that we work in is to generate additional research in understanding entrepreneurial ecosystems to understand which interventions are actually effective to helping entrepreneurs succeed for example there's been this rapid growth of accelerators incubators and tech hubs across developing countries as you see here on the map but do they work do they actually help entrepreneurs succeed i'm not sure some do and probably some don't we hope to answer these questions through the global accelerator learning initiative or golly we're partnering with the aspen network for development entrepreneurs and emory university funded through the lab a mid-air network lemelson foundation and ergidius foundation golly is going to collect more that data on more than a 10 000 global firms to study questions such as whether accelerators actually do accelerate growth of early stage ventures and which accelerators have the biggest impact on entrepreneurial success by identifying the factors that most contribute to success we hope to be able to better target our future investments so we're really proud of the work we've done and yet we realize that there are so many more challenges ahead one of those challenges i want to talk about is that as as all of you here know today more and more of the best solutions are hybrid ones which are not either pure nonprofits nor are they pure for-profits and thus they usually need to draw from a complicated mix funding impact funding and private sector funding the problem with this is that the vast majority of available funding is either pure philanthropic funding or pure commercial funding so of the estimated funding that is aligned with the new global goals commercial funding is about 10 times as much as the size of philanthropic funding which in turn is about 10 times the size of impact funds and of that tiny slice of impact funds we believe that only about 18 percent of it is truly concessionary this means that an infinitesimal portion of the available funding even attempts to address the hybrid funding needs of social enterprises i believe that truly concessionary impact funds will always be a challenge just from my personal experience i give to charities on one hand on the other hand i invest from my retirement i have to admit i get a little queasy when i think about taking my retirement money and putting it up as first lost capital for a social enterprise i may be a heretic here for saying this but i'm just not convinced that truly concessionary impact funding that is needed will grow fast enough to meet the growing needs today when we have a social enterprise that earns revenues but not sufficient revenues to meet the expectation of private sector returns we mostly bridge this gap through one-off solutions putting together custom funding stacks that mix grant funding impact investment and commercial funds it takes a lot of work and it takes a lot of time how many of you guys have seen that happen so is there another way what if we were able to create a market by actually paying for social outcomes and so on and so on where the social value of a business is externalized whether it be twenty dollars or two dollars think about this similar to the way carbon credits externalize the environmental costs to the business instead the social value becomes simply another reliable revenue stream to the social entrepreneur that and the social enterprise can then operate like a normal private sector business and draw funding from normal private sector debt and capital sources so for donors what this would mean is creating a stable market by playing for social value rather than deploying traditional programs the advantage we only pay if the results we're looking for are achieved for social entrepreneurs what this would mean is tapping into the far more significant commercial funding sources based on their ability to compete in this hybrid market and for private investors this would enable them to invest in the full range of social enterprises that are out there and be able to draw market rate returns so this isn't a new idea social impact bonds and development impact bonds have started to explore the space but it's still incredibly rare this is just one approach but I believe we need to accelerate our progress by one effectively measuring social impact so it can be securitized in ways like this and two standardizing hybrid financial instruments that make it much easier much more flexible to access we don't purport to have all the solutions and what we want to do is we're here because we want to work with all of you to find better more effective ways to support social entrepreneurs we believe really play an essential role in meeting global goals I'm really encouraged by the increased collaboration we're seeing between investors entrepreneurs and development sector actors such as ourselves at USAID and I'm grateful for Kevin Jones and SoCAP team for bringing us all here together again today really look forward to continuing the important collaboration with all of you thank you so much so as we've heard from Lisa and Ann May family offices and government are making big new commitments to this field to impact investing and social entrepreneurship investing in the most promising social entrepreneurs both for-profit and non-profit is critical to growing this field Eklene Green has been doing this work for over 25 years and what I love about this organization is that they continue to innovate and learn and build on what they hear from their fellows to continue to support more entrepreneurs in new issue areas and to bring more people into their work so that they're connecting these fellows to folks that will support their work for years to come so I'm really excited to hear the latest from the president of Eklene Green Cheryl Dorsey and help us figure out how we can support all the entrepreneurs at SoCAP all the entrepreneurs that they're connected to all the entrepreneurs that you know at home and really grow the field Cheryl Dorsey thank you Lindsay good morning everybody okay we got to do that again good morning great thank you so much I'm absolutely thrilled and honored to be with you all I'm also incredibly honored to have followed such fierce leaders like Lisa Hall and Ann May Chang so I'm super excited to spend the next 12 or so minutes with you guys another shout out to SoCAP for having us SoCAP has long been a great friend to Eklene Green and we're really excited to be an innovation partner for this year's conference so by my count there are about 50 or so Eklene Green fellows alums and staff coursing their way through SoCAP this year so for all of you out there it's going to be hard not to stumble across bump into or connect with someone from the community and I really encourage you take some time hang out get to know them worth engaging in these conversations and forging some terrific relationships I know I look forward to it so as Lindsay mentioned I run Eklene Green Eklene Green has been around for a long time about 30 years Eklene Green created a new model for funding and supporting early stage social entrepreneurs and has become the premier leadership accelerator for finding talent and unleashing it for the social good we do this in a couple of ways we first find rare and exceptional next gen global leadership we build and sustain a community of social innovators we accelerate these leaders to impact the world and we mine the insights the lessons approaches and challenges faced by these leaders and create new programming to support a more robust social innovation ecosystem so today Eklene Green has supported about 700 social entrepreneurs who've worked in more than 70 countries around the world they've leveraged our seed funding and gone on to raise in excess of five billion dollars in additional funding for the public good impacting positively millions of lives so you know I was about to say that it's a really interesting time for Eklene Green but as you all know it's always a really interesting time for those of us who work in this space nonetheless I want to walk through a couple of themes that we're seeing from our purview at Eklene Green that I think are worth highlighting and that I believe will give us some sense of where the field where the social enterprise field is heading so I'm going to quickly flag five areas first getting real is the pioneer gap and impassable gulch first second the growing role of purpose as part of the double bottom line for companies three connecting the dots and making explicit the connection between social enterprise and equity issues four moving beyond an institutional frame for social impact talking more about embracing distributed networks and communities of practice and five how the inextricable link between talent and value creation in the modern economy could could mainstream social impact work so I'll walk quickly through each of the five first is the pioneer gap and impassable gulch so Eklene Green's impact investing program stems from our long history of seeding selecting and supporting social entrepreneurs in the past decade we've helped seed the growing momentum around for-profit and hybrid business models so for example in 2006 only about 15% of those in our applicant pool were proposing for-profit or hybrid models in 2015 that had increased to 50% and you know despite compelling research on the pioneer gap and frequent acknowledgement of the lack of seed stage financing for social enterprise the most promising early stage ventures still face crippling hurdles in accessing capital you know we're hearing from a lot of our social entrepreneurs that in addition to individual fundraising challenges their lack of access to aligned early stage impact capital is a result of systemic structural market problems now that they've launched their impact businesses they feel isolated and far too often adversarial with the impact investors with whom they had hoped to partner they also recognize that it is not only a disappointment to them but that impact investors are also having difficulty reaching the goals and milestones that they'd enter the market to achieve you know we at Eklene Green are taking a number of approaches to address this we're working with other funders to provide blended capital both philanthropy and investment to catalyze innovative solutions second we're convening social entrepreneurs and investors discuss frankly these issues and third we're continuing to provide research to better inform the field you know this afternoon we'll be participating on a panel blended capital to support early stage entrepreneurs about this topic and we actually just released a new white paper in partnership with USAID called Deviation from the Standard to share key learnings about the types of investment readiness support and financing that early stage social entrepreneurs need and developed and emerging markets so that was pioneer gap second the growing role of purpose as part of the double bottom line for companies so in 2011 we became one of the first organizations to name and invest in the development of an emerging purpose field when we launched our signature work on purpose program with the vision to help young people mostly young people make career decisions that are right for them and good for the world companies around the world are also using these principles to try to recruit and retain a diverse pipeline of talent and to do the work we want to do with social entrepreneurs and organizations with a social mission we need staff as well that are as committed as we so companies are really listening and are increasingly paying close attention this generation of millennials who are eager to find meeting and purpose in their lives and work are influencing companies to institute and increase new corporate recruitment and engagement strategies related to purpose so for examples Ben and Jerry's is testing new ways to champion purpose within their company including equipping employees to lead and sit in on purpose exploration workshops we actually hosted one of their workshops last month with Ben and Jerry's staff they have a purpose team at Ben and Jerry's so their purpose team which is a cross departmental group is dedicated to determining how the corporation can further instill an emphasis on individual purpose into their work so today employees want more and research shows that they're actually serious benefits to this kind of focus so for example employees with a strong sense of purpose are at least four times more likely to be engaged in their jobs as other employees and also during a time in which workplace engagement in this country is remarkably low companies that are driven by purpose have employees that are three times more likely to stay with that company purpose driven companies also outperform the S&P 500 by 10 times between the years of 1996 and 2011 so purpose third point connecting the dots and making explicit the connection between social enterprise and equity issues you know in 2007 I was at a conference similar to this where I gave a talk tracing many of the predicates of this field to the work of social justice and critical social movements including the civil rights movement a human capital development approach and investment in next generation leadership a focus on opportunity and leveraging the power of narrative to shift norms and change behaviors widely so the next generation of social entrepreneurs at echoing green are now leading on this front really digging in on how to think about systemic racial equity in and through the lens of social entrepreneurship they are smartly examining questions of differential access to networks and the impact this has on financial capital flows as well as on building the kinds of bonding capital that's critical to achieving lasting social impact they're looking at inherent biases of funders and what it means to fund otherness and unpacking frames like culture and fit as too exclusionary for the abundance of talent that's really needed to take on and solve the challenges before us and over the next couple of days there are a number of really important panels here that will include some of these social innovators that I really encourage you to check out there's a panel tomorrow morning called measuring racism the prerequisite for diversity and equity it will explore ideas from leading racial justice research and begin to assess social entrepreneurship's role in the inequitable power dynamics created by racism there's another panel on tap this morning called funding otherness the impact of race culture gender and other identities and on Friday morning there's a panel called breaking down barriers to inclusive organizational culture I think these are incredibly important conversations that will allow new spaces and leading innovators to dig in deep on these very important issues so equity and innovation the nexus four moving beyond an institutional frame for social impact embracing distributed networks and communities of practice I mean we all know that throughout history social change has been possible only through the contributions and engagement of both individuals and organic organizations connected in both tight and loose groups positive developments disruptive innovation and scale will all be increasingly linked to ongoing actions through a network of relationships so what does this mean for community like echoing green so as our network has grown to be 700 plus social innovators and many friends and supporters we're beginning to invest heavily in opportunities for collective learning and engagement and facilitating communities of practice by issue area inflection point and geography so for example next month we will convene our currently funded fellows and alums in Johannesburg over the course of a week in partnership with USAID we'll have close to 200 social entrepreneurs with us for peer learning sessions engagement with local leaders industry roundtables and in addition over the past two and a half years we've piloted a cohort model of learning bringing together small groups of social entrepreneurs confronting similar challenges to then work through those issues together over the span of 15 to 18 months and thus far we've hosted about three of these cohorts around topics of raising impact investing dollars scaling your human services delivery model and scaling your work through idea diffusion finally we're really interested to watch how social innovators themselves are starting to create distributed networks that are organic and dynamic and truly open source so it's interesting to note that a lot of these networks are really predicated in large measure around human capital development framework so for example we're now seeing second order effects where echoing green funded enterprises are now seeding next generation talent and networks which are then coming into the echoing green space it's a trend to watch and an important mechanism for social change in the 21st century which brings me to my last point how the inextricable link between talent and value creation in the modern economy could mainstream social impact work so you know while a hundred years ago natural resources were really considered the economy's most valuable assets talents rise to become the key asset in the modern economy began about 50 years ago with an extraordinary flowering of creative work that required substantial independent judgment decision making so while in the for-profit sector this really drove a focus on compensating talent and we know some real downsides about overcompensating talent there's actually been a lag in our sector in the social sector around this conversation beyond the concern for the coming talent deficit there's really an increasing push for next generation talent to engage in social impact work providing not just an outlet for creative thinking but also because there's a growing cache of this type of professional path and from our perspective this really offers a real opportunity to double down on this linkage between talent and value creation because at the end of the day that's what we're all here for value creation socially economically and environmentally and in fact echoing green is presenting the 21st century talent content track at this year's conference and today you'll have the opportunity to hear from two of my colleagues along with other speakers who will be leading sessions on how to land and retain top talent and answer the question what does it take to prepare private sector talent for non-profit board service for example these are just some of the trends some of the themes some of the conversations we're having and echoing green we'd love to invite you all into that conversation informally over the next couple of days or if you guys have some free time this evening we will be at stock and trade at 2036 Lombard street 530 to 730 this evening come by for some food for some drink some good company we'd love to continue engaging in this conversation with you and we appreciate your attention thank you thanks Cheryl thanks Cheryl so I mean that echoing green is amazing it's like 27 years has graduated cohort after cohort through their through their programs and I can't think of another entrepreneur network and and support system that is as long tenured and success oh wait actually I can it's Ashoka Ashoka Bill Drayton's been running Ashoka for more than 30 years they are a global entity on so many cuts you want to go geography sector etc etc they're they are everywhere and so we thought it would be amazing to get Bill up here to get into conversation with Eric Branham who's actually the CEO of Mission Hub which runs Socap and a bunch of impact hubs around the United States to really go deep on what they are plumbing in terms of learning so I want to turn it over to Eric Branham and Bill Drayton and please join me in welcoming them thanks so much thank you Tim thank you everyone I know the question has been asked a number of times in terms of folks first Socap but again raise your hand if this is your first Socap ever and it is mine as well I feel a little bit like Stephen Colbert on the late show I sort of like the new gig I feel like I need like a band and come out dancing or something like that that's amazing I am thrilled to be here I joined as CEO of Mission Hub seven months ago and I'll talk a little bit about Mission Hub before bringing Bill onto the stage but you know I'm in my mid 40s and this is the world of impact and social entrepreneurship is relatively new for me you know folks in the mid 40s is that classic kind of midlife crisis time you know some people find God I like to think that I found good and get to join you here on stage so I did start life as a climate scientist I was a carbon dioxide researcher at Scripps Institution of Oceanography working in the lab of Dr. David Keeling and worked on the famous Keeling curve both an atmospheric and in seawater carbon dioxide so it has been really fun to move through the technology industry through the worlds of startups and entrepreneurship and eventually working on platforms for innovation which has actually brought me here to Mission Hub what is Mission Hub you say how many of you actually know what who Mission Hub is actually there'll be like four people in the audience Mission Hub one of our objectives and goals actually here at Socap was to talk about Mission Hub and actually raise the awareness of the mission of Mission Hub we are the parent company of Socap we actually are the a network of campuses impact hub co-working campuses here in the United States and in your program books on the sort of the second and third pages it talks a bit about who Mission Hub is and with this notion that Socap is really powered by Mission Hub I view Mission Hub as a marketplace a marketplace that is building the future of social innovation with you all as parts of that we are a marketplace of ideas like the Socap conference we are a marketplace for skills and learning one of the new programs that we're launching at Socap 15 is Socap 365 which is actually bringing the content the rich content from this conference out to our five campuses into weekly programming so that we can inspire and teach the next generation of impact investors and social entrepreneurs we are a physical marketplace for the goods and services that social entrepreneurs need to launch and grow yesterday Sam Mutney Sam out here I know it was in the back there Sam is a managing director of Impact Hub New York City which is a Mission Hub company and talked about the impact bizarre which is this physical marketplace for these goods and services hey Brian Brian Breckenridge from box.org thank you for joining us we are a marketplace for financial capital our Philadelphia campus we are going to be building a world leading center of expertise around impact investing and continue to take this amazing fabric that we are weaving together and bring it to market and lastly and ultimately we are a marketplace that transcends place you may have seen Socap TV which we're launching at Socap this year Socap 15 which is recordings much of the content and snippets and bringing it online to a worldwide audience that they can view and interact with what we're doing so first off thank you for being here thank you for letting me share the stage with you this morning and I am thrilled to bring on to the stage a man who probably needs no introduction to the vast majority of people in this room but I will introduce him nonetheless. Bill Drayton is the CEO and founder of Ashoka innovators for the public whose vision is in everyone a change maker world or anyone can apply the skills of change making to solve complex social problems. Bill pioneered the field of social entrepreneurship as a Harvard undergrad as a Yale student at Yale Law School a management consultant at McKinsey at the U.S. Environmental Protection Agency and as in a MacArthur Fellow. He's taught law and management at Stanford Law School and at Harvard's Kennedy School of Government and serves on the boards of Get America Working in Youth Venture. Please join me in giving a very very warm Socap welcome to Mr. Bill Drayton. Thank you so much. So we're talking actually before this Bill and this is your first Socap as well in terms of physically being here but have interacted and seen some of our great content to date so thank you for joining us. Bill you're a lifetime social entrepreneur and have been at the helm of Ashoka since you founded it in 1980. After more than 35 years what is unique about this moment for Ashoka? Well I think everyone here knows the answer to that. We know that we are a transition point the most amazing transition point ever. That's why Socap is so important. It's a key part of that transition and Ashoka is very privileged to be able to see the patterns because of the 3000 fellows because of our many other partners and in brief summary the world has been organized for millennia for efficiency and repetition so think assembly line law firm. But since 1700 the rate of change after being static has been escalating exponentially just a fact and so a world of giving people a skill which they will then repeat for their life doesn't work anymore and that way of organizing doesn't work anymore. Instead we are living in a world of change which is the opposite of repetition and we have to organize differently and everyone has to have different skills. So seeing this and realizing that we're at the turning point I think we all everyone here has a responsibility to help the world through that transition and the key part is helping people see it. Once you see it then you know what to do especially when the people around you also see it. So it's a frame change moment and thank you to Socap and everyone here for being a key part of that. Thank you. You mentioned Bill the scale of the Ashoka Fellows program 3300 fellows across 85 countries with now an organization of that scale and size what are some of the patterns that you see you're seeing to emerge from the fellows themselves. Well I've just mentioned the most important one but first of all let me introduce who the fellows are. Over half of them have changed national policy within five years of launch and three quarters the pattern in the field. So these are extraordinary people organizations and movements and we would be blind if we didn't see the patterns and that is really really important. It's not only seeing where we're going but how to get there and so let me just give you an example of the largest single group of Ashoka Fellows focuses on children and young people which is probably true for everyone here in our personal lives and there's an extremely obvious pattern. Ninety-five percent of them put kids in charge which is not what the schools do. It's not what most parents do. It's a very different model. There also you can see that pattern in another way because over 80 percent of the Ashoka fellows started something when they were in their teens or usually early teens and so if I just summarize this pattern you can see immediately how it fits a world where everyone has to be a change maker. The new definition of success in growing up and therefore education is every young child must master empathy and guide their lives by that and then when they become a young person around 12 they have to practice and practice being a change maker. Now what I've just said is coming from the reality of a world where everything's changing and where you need everyone to be a change maker any young person who doesn't have these skills is not going to make it. Any society, any city, any group that doesn't make sure that this generation of children and young people have those skills is in deep, deep and fast trouble. So this is like a hundred years ago saying we needed everyone to be literate and written language. We needed people to read street signs and manuals. No one's ever agreed about how to do that but that's just a fact and we're now at a moment where these other skills, cognitive empathy, sophisticated teamwork, a completely opposite type of leadership and change making is necessary. So that is a pattern and the final point about it, it fits the everyone a change maker world and you can see that in field after field. Fellows dealing with health, with patients, friends, family, neighbors, peers in charge. Oh that fits. So okay. As a part of that as Ashoka shifted from just supporting individual entrepreneurs to this notion of the world, right, everyone a change maker, how did that open up new possibilities for Ashoka as an organization or the way that you were organized? So we've historically been organized as a series of individual entrepreneurs with a team. Finding the best ideas, entrepreneurs helping them get started building a community in Nigeria or Poland or whatever. When you have to take on, how are we going to change the framework of thinking, for example, about growing up? Well then all the pieces have to work together. We have to become a fluid open team of teams just as much as everyone else and that's a very different way of organizing. Over the last, I'd say, couple of years we've learned something very profoundly powerful which is collaborative entrepreneurship jiu-jitsu. So okay, we see this new pattern. Every young person must practice and practice being a change maker and that means that schools have to be in everyone a change maker culture. Well how do we, and in that fits the everyone a change maker world, you have to do that. Well then how do we get people to see it? Well entrepreneurs are always a small force tipping the system. How do we do that together? And so this is amazing that we're actually succeeding at this. There are four stages. The first is the trigger. What's the least number of forces you need to set in motion that will create a self-multiplying dynamic? Leadership teams in a few schools, a few writers and publishers and leadership from some fellows. That has already led in the U.S. to 12 graduate schools of education, to ministers of education. We're looking to bring on teachers unions. Hall sale partners have to pick up in the next stage and you have to make it open. The third stage, once millions of people see it and are talking and it's the subject of conversation, how do you make sure that the conversation is as sharply focused, as intelligent as possible? How do you provide the flow of anecdotes and then finally institutionalization? That's a completely new thing and it's incredibly powerful. And in a world where you have to have fluid open teams of teams, this is a really important one. Whenever there's a critical mass of social entrepreneurs, entrepreneurs bringing major change for the good of all, they need to be able to get together to be as powerful as possible. And that's what collaborative entrepreneurship to Jiu-Jitsu does. One of the things we talked about before coming up is talking about that 12-year-old. So I have three kids, an eight-year-old boy, a 10-year-old girl and a 12-year-old girl who is super fun and amazing. What is your message to my 12-year-old daughter, Sophie, who's out there trying to find her own sort of identity in the universe? And frankly, part of my motivation of coming into this role is trying to be an inspiring person for her and to engage her with this universe of change. What is your message to Sophie? Well, given this framework change, we have something called Ashoka's Youth Venture. And the goal is to help any young person anywhere have their own dream, build their own team, and change their school or neighborhood.  So let me tell you a story that I found very powerful. We had a meeting of about 350 U.S. youth ventures. I sit down at lunch and this very tiny young woman comes down and sits to my right.  And so I asked her, well, what's your venture? And she said, oh, well, my brother's autistic and all through school I would cry when he was mistreated. But now we fix that. Well, how did you do that? Well, we get together whenever we see a special student not being treated well. And we figure out what to do. And then we go and do it and we're very persistent. Now, that's 90% her words, word for word. And if you were there, you would not have one cell of doubt that she is a change maker, that she knows it, that she's never going to be afraid in her life. And she's going to get better and better at this. She is able to express love and respect in action in a powerful way. And she knows it. He's also brought a whole bunch of kids along with her. She has her PhD in the most important skill she has to have to contribute in a world of change. There is huge demand for people with those skills. The people in this room don't understand because we all have that gift, what it's like not to have it. It's terrifying. It's the worst. Now, I asked you one other question. How many student groups are there in Shirley Middle School, which is a poor rural school which has flight of talent from the community as fast as possible? It's an appellation-like environment. Oh, over 50. Well, if there's one tenth of one percent of all the middle and high schools in the world that have 50 student groups, I'd be surprised. One guy in that community eight years ago took the youth venture idea and said, this is how we turn it around. If we've got a community of change makers where a magnet people aren't fleeing, he made it happen. So when she at 11 went into Shirley Middle School, she had a problem. And everybody said to her, you got a problem. You solve it. You build a team. Look around. That's the way it's done. And she did. Now, what we all have to do is make sure that every middle and high school in the world is in everyone a change maker world. So it is the norm. It's not exceptional to be a change maker because the world needs everyone to be change makers. And it's cruel. It's awful to allow any person not to have those skills. So there's very direct action here. Everyone here knows a young person. The next time she says something is a mess, put your book down and quietly say, well, how do you think you could solve that problem? Who? Well, why don't you get your friends together and fix it? Yeah, you can do this. And this is the most important thing you can do. And here's why. And it's OK to drop piano practice. Anyone can do that. And we need to do that for ourselves, for our friends, for our coworkers. And we also have to do it for the organizations we care about. This is a very challenging transition from hierarchy and stovepipes and repetition to an everyone a change maker organization. And just think about this strategic environment. Everyone is bumping everyone else. Everyone is a change maker. They're better and better. Because of SoCAP and the web, the amplitude of bumping is accelerating. That's why the change curve is going up exponentially. It's just a fact. So you need everyone in your organization, whatever it is, to understand the environment they're dealing with, to see the changes, to understand them, to change, to help the people around you change, and to see the opportunities. And then everyone has to come together quickly. Oh, there's a big new value creating opportunity over here. And we have to create a new team of teams, a different constellation, because it's a new opportunity. And by the way, you don't get to repeat that for 10 or 20 years. So this is a different environment. You have to have everyone a change maker. And that affects every part of your life. And so I just urge you, give yourself permission to recognize this is the strategic change. This is a historic moment. And those who give themselves permission to have the courage to say, yes, this is happening. And this is really good. This is a much better world. That's a great opportunity to serve. Thank you so much, Bill. And thank you for taking the time with us today. Welcome. Thank you. Hey, thanks. All right, everyone. So I have an update for you. Those sessions that it says in your program book are starting at 1045 are actually starting at 11. We have one more presentation for you and you don't want to miss it. You may have heard of the National Advisory Board that was convened by the G8 around impact investing that kicked off at Socap. The policy recommendations came at Socap. And we have Dave Wilkinson from the White House Office of Social Innovation to give us an update on that. He's also just going to speak to what the rest of this term looks like, what's possible after that, and the way that impact investing is influencing the conversation at the highest levels of government. So please welcome Dave Wilkinson. Thank you so much to be here. And I'm particularly honored to follow Bill Drayton, who is a legend in the field, the original social entrepreneur, and someone who has really paved the way for many of us. What a lot of people don't know about Bill Drayton is that he shares a name with another real, let's say, innovator in another space, the music space. The famous musician Flavor Flav from Public Enemy also named William Drayton. So I would say Flavor Flav is in great company, and so is the Bill Drayton who was just on this stage. So I'm really happy to be here with you. I feel like I'm among my people. I spent 10 years in social entrepreneurship and impact investing before I came to the White House. I've been with the White House Office of Social Innovation for about a little over two years. And I'm in a White House right now that's feeling good about things. We have had another great jobs report that just came out last week, more significant than that. That tacked on another month such that we've now had 67 straight consecutive months of job growth. So that's a big deal. In fact, it's a record since we've been keeping track. Unemployment is down to 5.1%. We have created since 2010 865,000 manufacturing jobs in the United States. So factories are opening right now at the fastest rate in 20 years. In the last year alone, global investment in the U.S. manufacturing has doubled, and it's creating great jobs. Inflation is down. Gas prices are down. Consumer confidence is up. Despite all this economic growth, we are using less energy overall, but much more clean energy. So solar capacity alone has grown 5x in the last five years. It's quintupled in five years. So we're happy about that, and we're seeing good progress on social indicators as well. Rates of teen pregnancy are down. Rates of incarceration are down. Rates of veteran's homelessness are down. In fact, we've reduced veteran's homelessness by one-third. A level of reduction that many didn't think possible, and we're not stopping there. We're still making progress on that. Health insurance. You may have noticed that in this administration, we talk about that topic occasionally. And so all that talking and some real hard work and action has paid off, and today 13 million more Americans have health insurance than when President Obama came to office. And yeah, it's an accomplishment, not despite some really technical difficulties, which is why I'm going to be using this today. We're going low-tech. So here's one of my favorite accomplishments, and then I'll stop bearing you in stats, which is that high school graduation rates in the United States are the highest they have ever been. They're the highest on record across all demographics. So that's something people don't know, but we're very proud of and excited about. So we've made a lot of progress during this administration. But the President is also very aware that not everyone has benefited equally from the recent progress. Far too many are still left behind. Far too many are still struggling to get on their feet, still working three jobs to make ends meet, staying up late, wondering how they'll support their family. So here's a stat that's not as comfortable. We know that, due to no fault of their own, 16 million children, 20% of children in the United States are born into poverty, grow up in poverty. We also know that the circumstances of their birth and their childhood will far too often dictate their opportunities and curb their potential. These children will have worse outcomes across every metric. They will be less prepared for kindergarten. They will endure higher rates of child abuse and neglect. As they grow up, they will have greater likelihood of teen pregnancy. They will be less likely to graduate from high school. They will have higher rates of incarceration. They will have higher rates of unemployment. They will have lower levels of income and lifetime earnings. And they will have higher likelihood of chronic disease. This is a national challenge. We know that the people in this room are working on that. And there's no higher priority for President Obama than addressing these challenges and continuing to make progress. And more than any president before him, President Obama knows that social entrepreneurs, impact investors, social innovators are an essential part of the solution. Yours or sectors that are still young are still making their way to reaching their full potential and therefore will be increasingly meaningful in addressing these challenges by creating more stable communities, jobs where we need them most, and creative new solutions that boldly take on challenges that we thought were intractable. So we are bullish on the SoCAP community. The promise and growth and impact that you have shown are among the reasons that the president created the Office of Social Innovation. So what is my office up to? So I'll share just two things. First, our focus on the critical role of impact investing in scaling up the work of high-impact social interventions, the ones that social entrepreneurs are developing, to measurably move the needle on critical challenges. And second, I'll talk about some recent policy victories through the National Advisory Board on Impact Investing, which has been advancing impact investing and the community's impact investing supports. So let's start with scaling those high-impact interventions. A big part of our mission in the White House Office of Social Innovation is to create a more outcomes-driven social sector. And so we've been busy helping to create and catalyze a market for social outcomes. And impact investing is playing a big and indispensable role in creating and growing that market. But since I'm with business people, I thought I'd take a moment to share a little of the value proposition of finding the interventions that are working best and achieving the best outcomes and what that could mean on a national scale. And one could also make implications on an international scale. So there are a number of estimates, and the camera is going to help, is going to help you see this, I'm hoping. There are a number of estimates of total federal, state, local, social spending. One of the more conservative ones is $800 billion a year. That is, that we spend $800 billion a year on social service delivery. If you've never seen $800 billion before, that's exactly what it looks like. And of course, we spend that across issue areas, early childhood, K-12 education, child welfare and foster care, community economic development, affordable housing, homelessness, chronic disease management, workforce development, et cetera. And the only reason that we spend resources on these issues and for these people is to get better outcomes for the individuals we're serving. And so we are definitely getting outcomes for the resources that we're spending. But the challenge is we too often don't know what they are. Actually, our first director of the Office of Management and Budget at the White House, Peter Orszag, some of you may have heard of him, says that we have evidence of impact for 1% of total discretionary federal spending. Now we actually quibble with this number, but the point is well taken that we don't know enough about the impacts that we're achieving for the dollars that we're spending. So we know some other things. We know that this $800 billion is not meeting current need. I talked about some of the statistics before. We're not meeting current need. We also know that it's unlikely at the federal level, at state and local level, that this number, this combined number is going to go up significantly anytime soon. It might be hard for some of you to imagine the president and Congress getting together agreeing to spend substantially more on social services delivering. And that's true in state houses and mayor's offices. So a lot of public policy making and resource spending is dealing with what mathematicians might call a fixed set. And I heard a governor say that a lot of policy making is robbing Peter to pay Paul. We don't have additional resources to add, so if we want to find money for a new program we need to find it somewhere else. So that is a challenge and what we're doing when we do that is we're taking resources from one program that we've never studied how well it works and we're putting them into another program that we will never study how well it works. So that's the bad news. The good news is that we know we have interventions that are working 30 and 50 and 70 percent better than business as usual. Whether it's high quality pre-K or nurse home visiting or solutions that are reducing recidivism or reducing the likelihood of childhood abuse and neglect they are working very well. And so we're working on a program now veterans with PTSD that is connecting them with jobs 270 percent better than our normal interventions. It's got 22 randomized control trials. So we know certain solutions are working better. What if and here's the value proposition I was talking about what if we were down here at this side and I hope someone can see this on a screen oh we can that's great what if we could get on average 25 percent better outcomes just as a thought experiment 25 percent better outcomes for the resources we're spending well that would mean that we would have more buying power the effective equivalent of 25 percent of 800 billion dollars anybody know what that is I already wrote it sorry 200 billion dollars so our congressional budget office scored Obamacare ACA at 120 billion dollars we know that 200 billion dollars is like Harry Truman great society level investment in social services and that's what we can achieve by investing in what works. One of our top solutions for this is pay for success socially we have heard of social impact bonds that is an incredibly important market enabling government to invest in these solutions that work I'm not going to go into it because there's going to be a whole session on it but I want to for the social investors in the room I want to convey to you that to date in this market where the largest market in the world 100 million over 100 million dollars invested and that is going that demand for capital is going to grow substantially and to date supply of capital has been greater than demand that has real danger of flipping and and as it does these promising projects are really going to be at risk we're seeing a lot of potential with high net worth individuals with CDFIs and with corporate foundations Google.org just invested in a pay for success transaction to reduce chronic homelessness right up the street in Santa Clara County but we hope that folks will look at this this market in addition so we're very enthusiastic about that and it's the centerpiece of the office of social innovations agenda. I also want to quickly talk about the national advisory board for impact investing the members of that in 2013 were announced here at Socap we've got a long history the White House and Socap the national advisory board uh last year we announced policy recommendations and that were published and I'm here there were a lot of skeptics about well how useful is what's going to happen we create a task force nothing happens well I'm here to tell you today that we're making real progress the treasury department just delivered on a major recommendation and so we are thrilled that the treasury department has made it clear that private foundations which have over 600 billion dollars in assets can invest their corporates in mission related investments this clears a major barrier and provides very significant new access to capital there are many other policy recommendations of the NAB that are making their way we have bipartisan support in congress for the core recommendation on pay for success and as you know we're looking at solutions that can unlock pinch three trillion dollars in federally regulated pension funds and so we are the department of labor is looking at that we're hopeful we'll have a good solution as much as anything these solutions are about unlocking the capital for the social entrepreneurs in this room providing the resources to scale the programs and businesses that are going to move the needle so on behalf of the president I want to thank you for your time and your dedication and your passion we have so far to go and we're so thrilled of your progress thank you y'all can understand why we've run over there was so much amazing stuff we wanted to tell you but let's stay in your seats for just a second there are three schedule changes that you need to know about first of all the monitors at the front of Herbst which is the building over to your right where the impact hub at socap is located the monitors there have the schedules and the changes in the schedule are highlighted please check it before you go out the Davos game it is at 230 and the festival meeting room two behind us it was it is in your program book as an hour it is actually two hours long and also at 230 building culture to drive mission has moved from building C to two building C room C to 30 now the next session that is starting in here will start in about three minutes sessions out on the campus are starting at 1105 go if you are staying in here please move to the front and we'll start in about three minutes