On Tuesday, 16 April 2019, KrASIA published an interview from three investors based in Jakarta to weigh in how social impact funds are different from tech-focused venture investments. David Soukhasing, Managing Director of ANGIN was selected to be one of the interviewee along with Tanisha Banaszczyk (Convergence Ventures), and Melisa Irene (East Ventures)
In emerging economies across Southeast Asia, starting companies that have the potential to create jobs is sometimes automatically equated with improving social welfare. At the same time, there are venture funds that specifically seek out companies with “social impact.” It can be confusing to figure out how, exactly, “impact” is defined.
In relation to this issue, here’s how David responded:
“You will see many deals co-invested by impact investors and VCs; the investors who heave the most capital into impact-driven deals are actually VCs (e.g. 500 Startups, East Venture or Alpha JwC), and some investors change their “label” based on their audience. Every deal done by VCs in Indonesia has an impact, and every entrepreneur I have met claims to have an impact as natural as job creation. To me, the inherent nature of the job is the same but there are two differences. The first is that impact investor bear the additional responsibility to justify why they use that label. Secondly, impact investors should play—invest—where other folks are not, so as to differentiate their mission from others’ and create new impact dimensions needed to close funding gaps.”
Read the original article here.
