Congratulations to BIF-4 Storyteller Jacqueline Novogratz

Posted by Chris Flanagan on June 20, 2008

BIF-4 storyteller Jacqueliine Novogratz was named one of the 73 biggest brains in business by Portfolio magazine. Novogratz is the CEO of Acumen Fund, a private equity company she founded in 2001 that has invested in 32 entrepreneurs who are building systems to bring affordable basic services to low income people in India, Pakistan, Kenya and Tanzania.

By applying business metrics to philanthropy, Novogratz is changing the model for catalyzing change in developing countries. She does not treat the poor as passive recipients. Instead, she sees them as customers and uses the market to understand their needs and preferences. For instance, she's learned over the years that people don’t want technology per se; they want services. Understanding what services are in demand requires an accurate perception of the people who will use them—even if they are poor.

Shifting business practices to accommodate unconventional venues means injecting a little creative disturbance into the marketplace, searching for serious innovators who cross sectors, locating the right entrepreneurs and the gutsiest local talent. By creating systems that are not dependent on random good will, Novogratz is taking the lessons she's learned about design and ultimately influencing government, corporations and private manufacturers to take her projects to scale.

One recent success highlighted in the Portfolio profile is A to Z Textile Mills. The Tanzanian company makes insecticide-treated mosquito nets to protect people against malaria. Acumen Fund invested $325,000 to entrepreneur Anuj Shah to help the company set up a factory which today employs some 5,000 people and produces 8 million bed nets a year. And the investment? Acumen Fund got it back.

Here at the Business Innovation Factory, we believe that the best value-creating opportunities are found in the gray areas between disciplines, functions, and sectors. Jacqueline Novogratz is an innovator who has created a new system level solution with an interdisciplinary approach. Her business model came from bringing unusual suspects together and connecting new capabilities in a purposeful way. I particular like this quote from Jacqueline from her recent blog entry:

"(I try) to live more fully the idea that we can hold the discipline of the market and deep compassion at the same time. I’ve worked harder to emphasize the dignity of work."

Don't miss Jacqueline share her story at the BIF-4 Summit on October 15th and 16th. She'll be joining more than two dozen other innovators from all walks of life. Register now for this unique 2-day conversation.

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