Deals are often structured as traditional debt, convertible debt, or equity in the form of fully voting common or nonvoting preferred shares, typically for a minority stake of 10 percent to 33 percent. Seeking new or traditional investors can lead to higher profitability, but perhaps at the expense of serving the poor. Retrieved 9 August — via www. Currently, it is in discussions with the Indian ministry of health to expand to districts in the country. Ted London of the William Davidson Institute argued in a May Harvard Business Review article that although anecdotes capture our imagination, using them as evidence of impact is akin to manipulating balance sheets to present better financial results.
As LifeSpring expands, the potential for exit opportunities will become clearer.
Acumen is trying to fill this gap by investing in risky but potentially rewarding experiments. Equity investments offer greater potential for financial return, but are far riskier propositions, since exit opportunities for social enterprises are often unclear. One such model is AyurVAID, a low-cost hospital group in India specializing in the integration of traditional Indian medicine with modern practice to treat chronic illnesses. Its staff of 7, who are mostly women, has made the company one of the largest employers in Tanzania. But so far its achievements have been small in scale, and primarily in the design of new business models for health manufacturing and delivery. Novogratz was confident that the nets could revolutionize the prevention of malaria, a disease that disproportionately affects the poor, killing approximately million people annually.