New ways to think about liquidity for impact capitalismNew ways to think about liquidity for impact capitalism

There are ways to avoid a disconnect between the mission and the exit strategy.

What should you think about now to allow more control of your company and its mission in the future?  

It’s important to reinvest in he most important drivers of the business and sometimes that is the brand itself.  

Investors want ongoing measurements of impact. 

Ownership is captured like a retirement plan.  

If you're a mission driven company, ESOP helps you ensure that the mission is carried on and passed with ownership.    

The real benefit is cultural, everyone behaves like an owner. 

ESOP rewards the company with employee longevity.  

Permanent capital is not about investing and then flipping, it’s about helping businesses grow.

How does a small business prepare for permanent capital investment in the future? 

Can your company grow across sectors? 

Mission-lock: How to mitigate risk as stakeholders and shareholders evolve and pressure emerges to cut costs and reduce mission. 

At the initial investment, it’s important to have an exit strategy.  

Become a benefit corporation. 

ESOP requires a lot of financial planning beyond infant stage.  

The ESOP structure works best in a founder controlled situation. 

There are significant tax advantages.

Take a long-term approach when investing in research and development and product innovation.

Investing in people and the supply chain takes years to develop. Find a long-term capital partner to back that vision.  

Be clear about future, including the governance structure and long-term goals.