ADAP GENDER WHITE PAPER
ADAP released a white paper on gender dynamics between investors and social entrepreneurs. The paper was co-authored by ADAP Guidance Council member Dr. Linda Blanshay and ADAP founder Andy Lower. Download of the full paper (PDF), is available here.
Men Investors Working With Women Social Entrepreneurs: Transforming Gender Dynamics
Dr. Linda Blanshay, Andy Lower: March 2018
The strength of a relationship between an investor and investee is paramount, yet interactions between men investors and women entrepreneurs are often marked by bias, micro-aggressions, and inequities. ADAP undertook an assessment of its own practices and suggests 3 C’s (Culture, Communication, and Confirmation) as areas to proactively examine and transform these gender dynamics. This paper shares the interview results from women early-stage entrepreneurs in the ADAP portfolio and suggests actions and questions that can guide men investors/advisors in taking a proactive approach to challenging inequities and maximizing impacts for all.
PERFORMANCE ALIGNED REDEEMABLE CONVERTIBLE STOCK WHITE PAPER
In collaboration with John Berger (Co-Founder Relevee), Ron Boehm (BOMA Investments) and Pam Rothenberg (Partner, Womble Bond Dickinson (US) LLP) we worked to design, build, invest in and document a new investment structure that we call “Performance Aligned Stock”. The team’s work was recognized with the inaugural Grunin Prize from NYU School of Law. Download of the full paper (PDF) is available here. (This summary paper in no way meant to provide any legal or tax advice and all investors and companies should seek their own legal counsel and tax advice. This document is version 5 of the White Paper (May, 17 2016) )
Performance Aligned Redeemable Convertible Stock is an alternative to traditional debt or equity structures that is designed to match investor returns with company performance. Impact investors who are considering equity investments face a common dilemma: The reality of the current market is that there are not enough equity exits. Therefore, social equity investors do not have a mechanism to realize equity-like returns commensurate with the risks inherent in early stage social businesses. To remedy this problem we designed the Performance Aligned structure to meet numerous investor goals.
FOUR HOUR DUE DILIGENCE
ADAP has developed and refined a rapid yet rigorous diligence process that is designed to take only four hours of the entrepreneur’s time. Hence, the “Four Hour Due Diligence."
ADAP Founder Andy Lower outlined the effectiveness of the process at the Socap conference in September 2017.
ADAP works with a wide variety of accelerators, incubators, investors, and others in the early-stage impact ecosystem to provide qualified companies to consider for investment. Our process is designed to eliminate companies we do not want to partner with as quickly as we can. We believe that time spent with entrepreneurs post-investment is even more important. Pre-investment, an investor is judging the entrepreneur. Post-investment they are helping them. More details are outlined on the video below.