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Jan 2, 2019 · 24m · a16z

a16z Podcast | Investing in Communities

Keisha Cash · 18m spoken Tani Olguin · 5m spoken
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In this podcast episode, Impact America Fund Founding Partner Keisha Cash and a16z host Tani Olguin explore how early-stage venture capital can generate market-rate financial returns while driving scalable social impact in underserved communities.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. How this is scored →

The host as informed peer 3.8 Guest teaching 5.2 Guest disagreement 1.3 The host pushing back 0.5
05100:0010:0020:002:47–5:30 · The host as informed peer 1/10 Defining Impact Investing and Measuring Social Outcomes Host asks introductory questions defining impact investing and measurement frameworks. Guest educates host on GIIN definitions, return spectrums, and GIIRS measurement tools.5:30–9:10 · The host as informed peer 2/10 Target Markets and Keisha Cash's Personal Background Guest shares personal background growing up low-income and critiques predatory market failures penalizing poor communities. Host asks about traditional VC engagement with impact funds.9:10–12:39 · The host as informed peer 2/10 Dispelling Charity Myths and Lessons from Madam C.J. Walker Host asks how to dispel charity myths and who historical impact investors were. Guest delivers a detailed historical lesson on Madam C.J. Walker as an early model for impact investing.12:39–17:20 · The host as informed peer 6/10 Portfolio Case Study: Maven's Micro-Entrepreneurship Model Guest outlines portfolio company Maven's model for empowering hairstylists. Host demonstrates strong VC expertise by expanding on inventory alleviation and network effects.17:20–21:19 · The host as informed peer 8/10 Why Andreessen Horowitz Led Maven's Series A Guest asks host why Andreessen Horowitz led Maven's Series A. Host articulates a16z's proactive investment thesis and operational value, demonstrating deep domain expertise before asking about mission-driven versus mercenary founders.21:19–24:58 · The host as informed peer 4/10 Vision for the Future of Impact Investing and Conclusion Host contrasts Silicon Valley insular problem-solving with broader societal needs. Guest presents a vision for addressing systemic wealth gaps and creating a gold rush in underserved communities.2:47–5:30 · Guest teaching 5/10 Defining Impact Investing and Measuring Social Outcomes Host asks introductory questions defining impact investing and measurement frameworks. Guest educates host on GIIN definitions, return spectrums, and GIIRS measurement tools.5:30–9:10 · Guest teaching 6/10 Target Markets and Keisha Cash's Personal Background Guest shares personal background growing up low-income and critiques predatory market failures penalizing poor communities. Host asks about traditional VC engagement with impact funds.9:10–12:39 · Guest teaching 7/10 Dispelling Charity Myths and Lessons from Madam C.J. Walker Host asks how to dispel charity myths and who historical impact investors were. Guest delivers a detailed historical lesson on Madam C.J. Walker as an early model for impact investing.12:39–17:20 · Guest teaching 5/10 Portfolio Case Study: Maven's Micro-Entrepreneurship Model Guest outlines portfolio company Maven's model for empowering hairstylists. Host demonstrates strong VC expertise by expanding on inventory alleviation and network effects.17:20–21:19 · Guest teaching 2/10 Why Andreessen Horowitz Led Maven's Series A Guest asks host why Andreessen Horowitz led Maven's Series A. Host articulates a16z's proactive investment thesis and operational value, demonstrating deep domain expertise before asking about mission-driven versus mercenary founders.21:19–24:58 · Guest teaching 6/10 Vision for the Future of Impact Investing and Conclusion Host contrasts Silicon Valley insular problem-solving with broader societal needs. Guest presents a vision for addressing systemic wealth gaps and creating a gold rush in underserved communities.2:47–5:30 · Guest disagreement 1/10 Defining Impact Investing and Measuring Social Outcomes Host asks introductory questions defining impact investing and measurement frameworks. Guest educates host on GIIN definitions, return spectrums, and GIIRS measurement tools.5:30–9:10 · Guest disagreement 2/10 Target Markets and Keisha Cash's Personal Background Guest shares personal background growing up low-income and critiques predatory market failures penalizing poor communities. Host asks about traditional VC engagement with impact funds.9:10–12:39 · Guest disagreement 1/10 Dispelling Charity Myths and Lessons from Madam C.J. Walker Host asks how to dispel charity myths and who historical impact investors were. Guest delivers a detailed historical lesson on Madam C.J. Walker as an early model for impact investing.12:39–17:20 · Guest disagreement 1/10 Portfolio Case Study: Maven's Micro-Entrepreneurship Model Guest outlines portfolio company Maven's model for empowering hairstylists. Host demonstrates strong VC expertise by expanding on inventory alleviation and network effects.17:20–21:19 · Guest disagreement 1/10 Why Andreessen Horowitz Led Maven's Series A Guest asks host why Andreessen Horowitz led Maven's Series A. Host articulates a16z's proactive investment thesis and operational value, demonstrating deep domain expertise before asking about mission-driven versus mercenary founders.21:19–24:58 · Guest disagreement 2/10 Vision for the Future of Impact Investing and Conclusion Host contrasts Silicon Valley insular problem-solving with broader societal needs. Guest presents a vision for addressing systemic wealth gaps and creating a gold rush in underserved communities.2:47–5:30 · The host pushing back 0/10 Defining Impact Investing and Measuring Social Outcomes Host asks introductory questions defining impact investing and measurement frameworks. Guest educates host on GIIN definitions, return spectrums, and GIIRS measurement tools.5:30–9:10 · The host pushing back 0/10 Target Markets and Keisha Cash's Personal Background Guest shares personal background growing up low-income and critiques predatory market failures penalizing poor communities. Host asks about traditional VC engagement with impact funds.9:10–12:39 · The host pushing back 0/10 Dispelling Charity Myths and Lessons from Madam C.J. Walker Host asks how to dispel charity myths and who historical impact investors were. Guest delivers a detailed historical lesson on Madam C.J. Walker as an early model for impact investing.12:39–17:20 · The host pushing back 1/10 Portfolio Case Study: Maven's Micro-Entrepreneurship Model Guest outlines portfolio company Maven's model for empowering hairstylists. Host demonstrates strong VC expertise by expanding on inventory alleviation and network effects.17:20–21:19 · The host pushing back 2/10 Why Andreessen Horowitz Led Maven's Series A Guest asks host why Andreessen Horowitz led Maven's Series A. Host articulates a16z's proactive investment thesis and operational value, demonstrating deep domain expertise before asking about mission-driven versus mercenary founders.21:19–24:58 · The host pushing back 0/10 Vision for the Future of Impact Investing and Conclusion Host contrasts Silicon Valley insular problem-solving with broader societal needs. Guest presents a vision for addressing systemic wealth gaps and creating a gold rush in underserved communities.

speaking balance: gold is the host, purple is the guest (3 minute bins)

0:00 · the host 0% · guest 100%0:00 · the host 0% · guest 100%3:00 · the host 0% · guest 100%3:00 · the host 0% · guest 100%6:00 · the host 0% · guest 100%6:00 · the host 0% · guest 100%9:00 · the host 0% · guest 100%9:00 · the host 0% · guest 100%12:00 · the host 0% · guest 100%12:00 · the host 0% · guest 100%15:00 · the host 0% · guest 100%15:00 · the host 0% · guest 100%18:00 · the host 0% · guest 100%18:00 · the host 0% · guest 100%21:00 · the host 0% · guest 100%21:00 · the host 0% · guest 100%24:00 · the host 0% · guest 100%24:00 · the host 0% · guest 100%
Sharpest disagreement ▶ 8:15 Critique of Predatory Market Failures

Keisha forcefully critiques traditional markets, arguing that low-income populations are penalized for being poor through unfair fees and poor service quality.

 Hardest push from the host ▶ 19:28 Challenging Founder Motivations Framework

Host pushes the discussion beyond standard pitch tropes by introducing the industry debate around mission-driven versus mercenary founders.

 Biggest teaching moment ▶ 11:05 Madam C.J. Walker Historical Masterclass

Keisha educates the host on historical impact investing models by analyzing Madam C.J. Walker's 100-year-old hair care distribution network.

 The host holds their own ▶ 17:42 Articulating VC Thesis and Sourcing Strategy

Host takes command of the exchange to outline Andreessen Horowitz's proactive sourcing strategy and rationale for leading Maven's Series A.
the scores for every segment, with the reasoning behind each
ChapterTopicThe host as informed peerGuest teachingGuest disagreementThe host pushing backWhy
Defining Impact Investing and Measuring Social Outcomes 1510 Host asks introductory questions defining impact investing and measurement frameworks. Guest educates host on GIIN definitions, return spectrums, and GIIRS measurement tools.
Target Markets and Keisha Cash's Personal Background 2620 Guest shares personal background growing up low-income and critiques predatory market failures penalizing poor communities. Host asks about traditional VC engagement with impact funds.
Dispelling Charity Myths and Lessons from Madam C.J. Walker 2710 Host asks how to dispel charity myths and who historical impact investors were. Guest delivers a detailed historical lesson on Madam C.J. Walker as an early model for impact investing.
Portfolio Case Study: Maven's Micro-Entrepreneurship Model 6511 Guest outlines portfolio company Maven's model for empowering hairstylists. Host demonstrates strong VC expertise by expanding on inventory alleviation and network effects.
Why Andreessen Horowitz Led Maven's Series A 8212 Guest asks host why Andreessen Horowitz led Maven's Series A. Host articulates a16z's proactive investment thesis and operational value, demonstrating deep domain expertise before asking about mission-driven versus mercenary founders.
Vision for the Future of Impact Investing and Conclusion 4620 Host contrasts Silicon Valley insular problem-solving with broader societal needs. Guest presents a vision for addressing systemic wealth gaps and creating a gold rush in underserved communities.

Statements from this episode (7)

Assertion Partly supported
Over 91% of impact investing capital goes to later-stage companies
“Over 91% of that capital was invested into later stage companies.”
Keisha Cash Jan 2, 2019 ▶ 2:06
Opinion
Billion-dollar market opportunities exist in underserved communities
“We believe that there are billion dollar market opportunities in underserved communities.”
Keisha Cash Jan 2, 2019 ▶ 7:55
Assertion Not checkable as stated
Investors in underserved communities rarely share the demographic background of residents
“Typically the people who have been investing in those communities don't look like the people in those communities.”
Keisha Cash Jan 2, 2019 ▶ 10:17
What-if
Madam C.J. Walker's business model would qualify as impact investing today
“If Madam C.J. Walker was an entrepreneur today starting her business, for us, that would be an impact investment given that she's empowering these women, she's created this national network, She's providing them an opportunity to generate income.”
Keisha Cash Jan 2, 2019 ▶ 12:03
Assertion Supported
The average hairstylist in the United States earns $24,000 per year
“And so, for a hairstylist who, on average in America, makes 24,000 dollars a year, and oftentimes are working additional jobs to support their family”
Keisha Cash Jan 2, 2019 ▶ 15:27
Disclosure
Impact America Fund portfolio founders do not attend impact investing conferences
“They're not in our impact investment networks. They're not at the impact investing conferences. The entrepreneurs that we've invested in understood a pain point based on their own experiences, and we're building great, solid companies around that pain point, a…”
Keisha Cash Jan 2, 2019 ▶ 20:11
Assertion Not checkable as stated
90% of entrepreneurs of color build solutions for underserved community pain points
“Nine times out of 10, if I met an entrepreneur of color, they were addressing a pain point in an underserved community”
Keisha Cash Jan 2, 2019 ▶ 22:59
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