Frances Messano

I’m excited to publicly share something that has been in the works for a few months at the 9point8 Collective. We’ve launched our Virtual Studio! This is a program for early-stage companies that provides the coaching, development and venture-building tools they need to find traction and scale. The program is modeled off of the venture-building processes found inside #VentureStudios, which have delivered 2X IRR and exit 45% faster than traditional #VC-backed #startups over the last 10 years. Some of the secret sauce to this is that studios have found a way to validate strategies early on, de-risk execution, preserve and extend limited runway, and create efficient business models very fast. We at 9point8 are seasoned studio builders and are on a mission to bring this value to founding teams as they navigate their startup journeys. What we’ve done with the Virtual Studio is distill these key processes and techniques, add in our own expertise and best practices, and package them into a program which meets start-ups where they are. We are now opening up our Summer 2024 Cohort, slated to begin in July. Space is limited, so I’m sharing the opportunity with my network before we fill the cohort. Here are the details: -It’s a 3-month program which takes the founder through the key phases of venture-building and de-risking (refining target market, product-market fit, economics and financials, planning, and fundraising). -Founders can expect to achieve greater focus, improved operations and increased marketability to customers and investors. -The end results include collaboratively-drafted operational plans, commercial / investment pitch decks, and elevated management practices within the founding team. These draft off frameworks from 9point8's proprietary venture-building process: Targets Over Everything. -It’s built for founders facing (or approaching) a critical inflection point, where fresh perspectives and strategic management levers are critical. These might include fundraising preparation, new product launch, market expansion, and post-MVP scaling efforts. Why did we build this program? Because building a new company is really hard. 90(!) percent of startups fail, and even moderate risk reduction can create a huge lift to survival rate and eventual returns. The studio model is proven to drive greater venture success; our virtual program is extending that success to more and more teams. The program is highly collaborative and hands-on, so we only take on a few companies at a time. This is a great opportunity for founders who are looking to level-up their abilities when it comes to unlocking traction, growth, and an express lane to superior returns. If interested, please reach out immediately as we expect the program to be fully enrolled very soon! Blair Merlino Evan Allen Neal Ghosh

55

17 Comments

Great insights shared by Dr. Christopher Haley at Startup Genome on the vital connection between a region's assets and the appropriate accelerator stage. This article underscores how aligning these elements leads to remarkable outcomes in ecosystem development. A great read for all of my friends in ecosystem development. From my personal experience I'll add that misalignment, however, can have long-lasting effects. When startup programs or organizations backed by private or public funds falter, the recovery period for regions can extend from 3 to 8 years. This delay significantly impacts founders seeking mentorship, knowledge, and funding opportunities. #EcosystemDevelopment #StartupGenome #AcceleratorPrograms #FounderSupport

15

2 Comments

Check out this episode with some of our industry's BEST in-class talk about the evolution of the Philanthropic sector.👍🏾#LetsGO #Podcast #PhilanthrophyMatters #DayLightAdvisors 🔥🔥

21

6 Comments

“It’s complex, messy, hard, and uncertain, AND we can move our way to a bold future together. Philanthropy must hold onto openness, humility, love, and accountability; without it, it is unlikely that we will meet the full intentions for our work.” Holding space for the uncertainty while making forward progress is, in my humble opinion, one of Building Impact Partners’ unique value adds as a partner for donors who want to support big change. Check out my colleague Tanis Klingler’s new blog post!

6

Thanks to the American Evaluation's Social Finance working group (Heather Esper, Ichiro Toda, Laura K. Budzyna, Morgan Buras-Finlay, Courtney Bolinson, Catherine Dun Rappaport), the Mission Investors Exchange (Melanie Audette), and Tim Mohin, evaluators and IMM practitioners know a lot more about the fundamentals of ESG. During a very busy Climate Week, Tim Mohin joined me to discuss the opportunities for evaluators and IMM practitioners in the ESG field. While covering a lot of ground, three key takeaways from the conversation stood out as particularly relevant.   1.     Understand the purpose of ESG information. ESG data is used by companies, especially publicly-traded ones, to report information on environmental, social and governance risks posed by their operations and products, or their suppliers, that may materially affect their financial performance; thus, providing relevant due-diligence information to investors. ESG information may be used as well for companies to better understand risks to their brand or reputations, which in turn may affect their financial performance. Such information may also be useful to the communities in which companies operate as another measure of a company’s role as a good neighbor.   2.     Attend to the data. Data for E, S, and G come from a variety of sources internal to companies (e.g., environmental compliance, procurement, HR) and externally from government regulatory agencies or other third parties. With data and its analysis driving decisions, evaluators and IMM professionals have the opportunity to interrogate and help produce high quality, replicable, and comparable data.   3.     Open up the black box of data analytics. Currently the analytics used to establish ratings for E, S, and G separately and as composite single numbers remain opaque and not standardized. As with the data, evaluators and impact managers need to assess the replicability and utility of such analytics in order to provide useful information for investors, the companies, and the communities.   Reflecting on these points, Tim noted that “There are serious issues that companies would have ignored but for the people on this call.” The webinar raised other not-to-be-ignored ESG issues. Evaluators and IMM practitioners have the opportunity to address them, to ask the tough, uncomfortable questions, and to seek answers that help advance ESG reporting and management for all actors. So many smart people in this space that we we missed that are helping answer such questions including Jane Reisman, Huilan Krenn, Veronica Olazabal, Mita Marra, Alexandra (Sasha) Zoueva, David Pritchard, Amy Chung, Cynthia Muller, Joanna Cohen, Patricia Rogers, Sarah Gelfand, Thomas Kelly, Nina Sabarre, PhD, Kathleen Doll, PhD, Jonathan Morell, Victoria Faust

29

8 Comments

💡 ⚡ 👊 "All of our research indicates one key truth: FIELD CATALYSTS ARE AMONG THE HIGHEST-LEVERAGE INVESTMENTS PHILANTHROPY CAN MAKE when it comes to equitable systems change." (caps are mine) YES!...The Bridgespan Group we couldn't agree more! Here we share some reflections on running NCP's Economic System Change Lab...and playing a field catalyst role in support of leaders working day and night to transform the economic system so it actually works for more people--and the planet--and not just a privileged few. "The New Capitalism Project (NCP) Lab has been an experiment in how to incubate a set of inter-related ideas for action and bridge them towards a group’s shared vision for a transformed economic system. From the outset, the NCP Lab has focused on cultivating deep connections and trust among a range of leaders in service of supporting more connected and systemic ways of working together. We believe this kind of collective leadership and coordinated action are critical enabling conditions for driving system health. What we also know is that investments in enabling conditions such as these are hard to “projectize” and therefore harder to fund; and the qualitative and emergent nature of their impact often does not fit well into typical grantmaking reports." Read on if you're interested... https://lnkd.in/eUnzNhn8

28

5 Comments

Happy Thanksgiving! Love this perspective on fund diversity and deployment strategy. "For early stage investing, large portfolios (~100 investments) outperform small portfolios (~30 investments). The goal for pre-seed or seed GPs is to invest in a large enough number of companies to maximise the chance of finding outliers (about 2% for ~50x, 5% for ~15x according to data from Dave McClure). From that point, once you have built a sufficiently diversified portfolio, you can consider a strategy to deploy remaining funds into follow-on rounds for best looking companies as "call options". This only makes sense if you think these follow-ons are the best opportunity available for that capital. Evaluate them as you would any other investment. A lot of VCs (and LPs, for that matter) understand the logic of concentrating into winners, but not the first step of building an appropriately sized portfolio. Why? Probably because the former amplifies risk, while the latter reduces it — playing into the principal-agent problem in VC and the "power law" smokescreen. It also happens to be a lot easier to manage a small portfolio. I've spoken to LPs that say they prefer small portfolio strategies because concentrating into winners is more likely to produce >10x returns. In a world where only the top 5% return >3x, it makes ZERO sense to optimise for that level of risk. Especially when you are allocating other people's capital (pension funds, MFOs, sovereigns, etc). "Few investors demand diversified funds, so GPs don’t offer them. A slow and steady 'venture is a numbers game' pitch is much less emotionally compelling than 'I am a rock star who can consistently beat the odds.' And GPs need an emotionally appealing pitch to get funded." - The Pervasive, Head-Scratching, Risk-Exploding Problem With Venture Capital" This is how we built our fund's strategy -- to invest early in a diverse portfolio. Our current partially deployed fund already has 42 bets, averaging a deal every 1.8 weeks. Dave McClure taught us that investing in 50 companies on a 10x lower cost basis leads to close to the same ownership in each one as investing the same capital in just 5 companies. This approach seems advantageous for startups too as it allows us to give an easier yes to diverse and early companies. We are still finding our sweet spot around valuations and portfolio construction, and we are passionate about these core principles. Jamie Rhode, CFA has done many podcasts on this for those who want to hear more about the data. I look forward to fund 2 when we will have enough capital to both make diverse bets (60+) as well as have follow-on capacity for winners when they are, as Dan says, the best available opportunity for that capital. For investors and startups, what do you think about this strategy? https://lnkd.in/gizefUYC Benjamin Rolnik Julia C. Manu Satyavolu Aman Verjee, CFA Sophia Platt

42

21 Comments

Operating Partner ("OP") roles have become highly coveted positions, but what exactly are they, how do you land these roles and what’s the biggest risk associated with taking the leap? OPs are key value creation partners at private investment firms. They are functional leaders who work directly with the C-suites across a portfolio to enhance each company’s ability to deliver or exceed intended outcomes. But no OP role is the same - and many firms treat and hire for the function differently, depending on stage and investment style. - Growth firms will typically look for CEO whisperers, proven CRO & GTM experts, CMOs. - Traditional PE firms will look for change management experts, COOs and CTOs focused on infrastructure modernization and efficiencies and cost-cutting CFOs. Proven operators are the most natural candidates. Those that have led companies to achieve significant performance objectives or from funding rounds through to IPO - especially leaders who have demonstrated their ability to rinse and repeat their special sauce. This gives investors conviction their methods can work at scale. If this is you, great. Consider: - Do you want to work with a portfolio of companies vs. just one? - Have you made this choice purposely or accidentally? There are consequences in terms of what you might / might not be considered for going forward. - Is your skillset better aligned to Growth or Private Equity? - Are you OK not being a leader within the company itself, but a partner who sits “on the outside” without full control? - Can you articulate your numeric successes? PE investors are incredibly metrics-oriented. If you haven’t been a repeat-operator, get your feet wet as an advisor to private companies at various stages. Proving your value-add as an advisor can help position you for conversations with investment firms. One often overlooked risk of shifting to an OP role is the hard truth that this move signals “you’re done with your operating career.” That’s not to say it’s impossible to find your way back, it can just be much harder. If you’re considering the move, ask these questions of the investors you approach: - Where does the function sit within the organization? - Do they expect you to run a “playbook” on each portco, or do they believe in a custom approach that caters to each company? - What’s the relationship between investors and OPs? How do they work together? Ratio of investors to operating partners? - How does the firm measure success for OPs? - Did they firm pull back on the function as a way to cut cost or did they double down on adding value creation experts to enhance portfolio outcomes, as they have been forced to hold onto companies longer? - How is the position compensated? Does comp include carry? Banff is here to help you navigate the career journey that’s right for you. If you’d like to learn more about the Banff Executive Network, please reach out to [email protected]

132

8 Comments

If you believe that #Diversity and #Inclusion matter, specifically in times like this, join us on October 30th. We will discuss the challenges and success stories of promoting Diversity in 2024. With me you will find industry leaders who were able to pull it off (!) 💥💥💥 Dorit Dor, Hasan Abasi, Vered Raviv Schwarz, Gal Shaul Guesty, Augury, HAAT Delivery, Check Point Software Power in Diversity Glilot Capital Partners Poalim Tech, Meitar | Law Offices, ESOP - Phoenix, Microsoft, Calcalist כלכליסט #nomatterwhat

36

1 Comment

✨ Making an Impact Where It Matters Most ✨ I’m continually inspired by the transformative power of nonprofit and philanthropic work. At Schermer Impact Strategies, every day is a chance to connect incredible funders with organizations driving meaningful change—organizations committed to building a more just, inclusive, and impactful society. The work we do is about more than dollars—it’s about hope and possibility. It’s about ensuring every donation, grant, and act of generosity fuels missions that create measurable, lasting change. Whether it’s advocating for LGBTQ+ rights, empowering communities to fight bullying, or advancing equity in underrepresented spaces, I’m honored to support nonprofits making our world a better place. But here’s the truth: it doesn't happen without you. The more funding nonprofits receive, the more lives we can change—together. Philanthropy isn’t just about generosity; it’s about partnership and shared purpose. When we align resources with impact, we unleash the potential to make the impossible possible. At Schermer Impact Strategies, I’m proud to help bridge the gap between passionate funders and organizations doing extraordinary work. If you’re looking to amplify your impact, let’s connect. Together, we can fuel the missions that matter most and create the world we want to see. 💡 Let’s make change happen—one investment, one campaign, one mission at a time. #NonprofitLeadership #Philanthropy #ImpactfulGiving #SchermerImpactStrategies #MakingADifference (image generated with AI technology, thought it was cute)

20

In the article at the link below, Spencer Stuart reports on how much time board members spent on board service and how they spent their time on those boards. (This is for all boards, but 60% of respondents sat on public company boards.) A few takeaways: 1)       What is the time commitment? Private company directors spend ~3 hours per week per board, and public company directors spend ~5 hours per week. This is not minor, but then again public boards, at least, pay well for board service, so it is compensated fairly, if not well. 2)       How is board time allocated? Board members wanted proportionally more time spent debating strategy/performance, succession, talent, and AI. The largest changes in what they want to spend more time on include #AI, new technologies, and #cybersecurity (i.e., all things tech-related). Do members of your board have expertise in these critical areas? Directors want less time spent in meetings on ESG and DEI topics. 3)       Are the agendas the right agendas? Directors want #boardchairs, CEOs, and management teams to be even more purposeful and strategic about setting the agenda. Here’s an excerpt: “Several respondents noted how management presentations take up huge portions of [board] time. Even those intended to be 'information-only' can consume more time than expected as board members ask questions and precious time is spent on topics that don’t necessarily need board attention. One respondent suggested sharing more management presentations several days before the meeting. 'The executive team needs to think more carefully about the board agenda and not overloading it with topics that require lengthy discussions.'" 4) What about executive sessions? Respondents noted that a best practice was to hold #executivesessions at the beginning AND end of meetings. In the initial executive session, the board can also improve the agenda and prioritize for the meeting ahead. This is an interesting best practice. I have yet to be in a board meeting with two executive sessions. Have any of you? I don’t think I would have done this with boards I was on because attention spans were too short for two executive sessions. I have been on boards where CEOs hosted a dinner with board members and key staff. Staff presented and we all debated a key corporate topic, which worked very well. #governance #boardofdirectors

19

2 Comments

The Importance of Preparation in Fundraising My two decades of experience have shown me a variety of fundraising strategies across both non-profit and for-profit sectors. While the specific goals may differ, there's a common thread: a well-defined problem that needs solving. However, this discussion will focus on the approach to fundraising itself. Often, regardless of the organization type, those seeking funding lack proper preparation. Non-profits might rely on consultants who craft compelling grant applications, while businesses might turn to service providers for business plans and, more recently, pitch decks. While these are valuable tools, successful fundraising requires groundwork beyond just polished documents. Here are some crucial preliminary steps: Define the Problem Clearly:  Do your homework by understanding the exact problem you're addressing. There's a formula for this: Market Size (number of potential customers) + Severity (consequences of the unaddressed problem) = Problem Statement (a significant issue with serious implications). Investors and sponsors seek this clear definition. Targeted Research: Don't just spam applications and decks.  Research potential sponsors or investors to ensure your organization aligns with their interests. Investor Mindset: Understand what motivates investors. They want to see how your proposed solution addresses the identified problem and if it's the optimal approach. Invest in Visibility: Fundraising is a form of marketing.  Invest some resources to establish an online presence. Investors often research companies and ideas online, looking for similar projects. Having no online footprint makes it harder to get noticed. If you are looking to raise to prepare for funding look me up. For great events for startups follow and check MyidEA. #fundraising #strategy #startup #fundraisingstrategy #pitchdeck #investment

4

Breaking barriers for women in finance! 🚀 Women and diverse fund management teams outperform peers by up to 20%, yet only 3% of PE/VC capital goes to women-led fund managers. It's time to bridge this gap and invest in women for greater returns and impact. In this technical brief, SAGANA and Chemonics International explore bold strategies to shatter systemic challenges faced by women fund managers. - 💰 Fund of funds to directly deploy capital and anchor women-led funds, many of whom are emerging or first-time fund managers - ☂ Warehousing facilities and umbrella funds to assist fund managers in sharpening their investment strategies while building a track record - ℹ Adapt screening and selection criteria for LPs, putting more emphasis on transferable market/sector expertise and industry-level references and reputation - 💨 Working capital facilities to lengthen the operational runways of emerging fund managers - ✅ Shared services platforms to help emerging fund managers cover fund management and administrative costs while moderating investor concerns over direct experience in the sector More here: https://lnkd.in/dKfgT5Qa Dany Khy | Kerry Dittmeier | Ayla Bitmouni | B. James Soukamneuth | Peter Barsamian | Raya Papp | Kelly Roberts-Robbins | Malvika Dwivedi | Aditi Annapurna

40

3 Comments

Excited to share this article describing the The Goodness Web's vision and impact on youth mental health. If this is a topic you care about, please join The Web! #thegoodnessweb #radicalcollaboration https://lnkd.in/epSxR2W4

78

12 Comments

It's time to REDESIGN systems of power and governance in philanthropy. Do you know any extraordinary board members, trustees, or HNWIs who have an inkling that this is true? 🤔 Philanthropy's status quo is an ill fitting governance system that wasn't designed for social change--it doesn't work well for anyone involved or the outcomes we seek. We need systems that work for the complexity and humanity of the world. The good news is, we can create them. Together. We've designed a highly supported experience to do just that! We're working with the brilliant teams at Intrinsic Labs and Radical Optimist Collective. Click through to see the profile of potential participants we're looking for to take part in Metamorphic Legacy, a bespoke leadership experience to redesign governance. Share this post/the 1 pager with 🦄 trustee unicorns 🦄 you know and reshape philanthropy with us! #philanthropy #leadership #governance #redesign #boardmembers #trustees #HNWIs #creativity #boards #grantmaking #innovation #crappyfundingpractices https://lnkd.in/dXz4zR8X One pager: https://lnkd.in/dR-hGN-T

46

9 Comments

Despite the fact that collaborative funds are being talked about as the next big thing in philanthropy, there's still a lot we don't know about their value-add to philanthropy. Often the discussion centers on how they enhance the experience and impact of donors. This new piece from Jennifer Stout draws attention to the importance of examining the experiences of grantees who receive funding from collaborative funds, as compared to their experiences with "direct funders". For The Freedom Fund, our understanding of how grantee partners perceive us largely comes from continuously seeking feedback (more on that here: https://lnkd.in/eEa6u7F6). We also see a big part of our role as identifying and building relationships with groups who have tremendous potential for deep, sustainable impact but who more traditional funders might overlook. As Jen says, we need more research across the field to draw broader conclusions and make the case for why collaborative funds, when structured appropriately, can fill gaps and do things differently.

27

We are hosting a small gathering to drive more capital into climate on Nov 14th at 4PM in NYC: "Leveraging DAFs for Climate Impact" Confirmed guests: RMI, Acumen, Activate, Elemental Impact, Neta's Foundation, Social Finance, Toniic and more with my co-hosts Liz Walsh and Rhett Godfrey. Please send me a private message for the link to the event if you are interested in the space and can benefit/contribute, thanks :) ***** Harnessing the Power of DAFs: A Guide to Driving Climate Change Solutions ​Discover how Donor-Advised Funds can make a tangible difference in the fight against climate change. ​Join us to explore the untapped potential of Donor-Advised Funds (DAFs) in addressing the urgent climate crisis. ​Learn how to: ​Identify climate-focused nonprofits: Discover organizations making a significant impact on climate change mitigation and adaptation. ​Allocate your DAF funds strategically: Maximize your contribution to climate solutions through targeted giving. ​Engage with experts: Connect with leading climate scientists, philanthropists, and nonprofit leaders for valuable insights. ​Foster community impact: Explore collaborative opportunities to amplify your climate change efforts. Remarkable Ventures Climate

50

4 Comments

How will a donor’s DAF go after the death of donor or donor and spouse? The options are richer than many realize, and those options can solve for many multi-generational philanthropic planning challenges. In effect, a donor can plan to support one or more specific charities for a long time after death, or forever, without having to trust those orgs with a big lump sum, and without having to entrust (or burden) heirs with fulfilling parental intentions. Houses of Worship, small arts organizations, activist organizations, elder care facilities, and private school, are among the many vital community based organizations that can benefit. Many of them have no endowment and no ability to manage endowed, donor-restricted gifts. In educating donors about these solutions Community Foundations, National Gift Funds, and Faith Community Foundtions all have a role to play. As do advisors. Consider these as possibilities as #outsourcedendowments. Kimberlee Riley, CAP® Megan Hyman Phil Strassler Daniel White, CAP® https://lnkd.in/ewnKEYaY

61

15 Comments

"Orticio argues that, given children’s natural skepticism and early exposure to the internet’s boundless misinformation, it is crucial for adults to teach them practical fact-checking skills. Instead of attempting to completely sanitize their online environment, he said adults should focus on equipping children with tools to critically assess the information they encounter." A great piece by Jason Pohl on equipping kids to fact check what they hear and learn. (We should probaly be equipping some adults with this too!) https://lnkd.in/eJnJpwte

14

2 Comments