What can happen when a group of high profile investors get together to raise money? We’ve seen some of the results of these actions in companies that started out rather small and have grown into massive corporations because of stable financial backing. It only takes a glance at Uber, Fender and Airbnb to realize the potential. Bono and other investors have contributed to a social impact fund that is called the Rise Fund.
What makes the Rise Fund Unique?
The Rise Fund will be used for investment in businesses with a twist. The social impact of each investment is going to be tracked and quantified. From what we can gather, the results will show how the Rise Fund is impacting society and what positives will come out of the capital that is provided to the recipients. It sounds like a brilliant plan that will help those in charge of allocations in their decision making processes. It would be remiss to claim that there is only a dual benefit implied with the use of this strategy. In addition, it would serve to further build investor confidence for any future rounds which may or may not be required. The third benefit would be for the rest of the world because the data which we believe will be collected could have far reaching implications not only in the financial sector, but additionally for other decision makers within other industries.
It is highly likely that as the Rise Fund begins operation and making investments that they will see a healthy financial return on their funding activities. Much depends on whether or not there will be a learning curve for those who are not completely familiar with the process, however; it appears that the board members selected have ample experience in financial dealings and decisions for investment strategies should go smoothly. This is particularly bright as what we know about their future plans so far is in order.
What gains will Rise accomplish?
A spokesperson for the group stated that Rise will seek to gain social and financial rewards from their involvement in the investment sector of finance. Although there have not been many details about their plans spelled out for press release, from the information that we have so far, we may infer that they plan to assess the impact that their investment dollars have upon society. We’re not certain just how comprehensive their data collection will be, but it sounds like a positive step that will benefit individual businesses and beyond. So far, the strategy that they have in place has all of the earmarks of being a raging success because the information that they gain will be vital in their future investment decisions.
Who is involved in the establishment of the Rise Fund?
Let’s begin with a little background first. Bill McGlashan is the overseer of a growth investing platform called TPG Growth. He is leading the fundraising effort that has set a goal of two billion dollars for the Rise Fund. Most recently, we learned that Bono is a board member of the Rise Funds well as the founder of eBay Pierre Omidyar, the company’s first president Jeff Skoll, Richard Branson; Lauren Powell Jobs; Ariel Investments president Melody Hobson; Reid Hoffman Mo Ibrahim and Lynne Benioff. With this prolific crew, investors are likely to have a higher confidence level in the stability of the future of the venture.
The Role of TPG
TPG is a leader in the industry and has been involved with investment capital for more than twenty years. Their interest and participation in the Rise Fund lends an heir of confidence that it will be a major contributor that will achieve some impressive results for startups with good ideas and a deficit in venture funding. The company was established in 1999 and began with a five hundred million dollar venture fund. The company routinely invests in ten to fifteen companies annually. The goal of the investments are to assist the companies in expansion and other areas which are growth related. While TPG Growth invests in a variety of companies in varying dollar amounts, they have established a reputation for equal treatment of each company whether the investment is large or a smaller amount. Building this rapport is no small feat in the finance industry and TPG has come into its own as a leader that cares equally about all companies with which it works.
Significant progress is being made in the fundraising for the Rise Fund. As of the last report, three donors have made commitments that are in the nine figure bracket. With two billion as the goal, TPG is doing its job and doing it very well. This is nothing new because they have an excellent track record for hitting goals that they have set. Their reputation in the investment community gives them the advantage for having the confidence of high profile investors for more quickly achieving their goals. We’ve not yet heard confirmation of when the Rise Fund plans to get into full swing, but we believe that as forward progress is made, more information will be released.
The fundraising efforts that are currently underway to raise two billion dollars for the Rise Fund is an endeavor that has tremendous potential for boosting businesses that have something substantial to offer the general public in return. In theory, their strategies and purpose sound very good and their unique approach to investment and social impact will soon have its trial period. What we currently know is satisfying to a point, but there are still lingering questions that will have to wait to be answered. It may take several years for the information that will be gathered to form coherent patterns but when it all starts to come together, there is a high likelihood that the reports generated from the businesses that are backed by the Rise Fund will be interesting to say the least. We’re looking forward to hearing more about the progress of fundraising as the Rise fund is one to keep your eye on for positive results.