11.02.2008

Social venture capitals

There were lectures last week by persons in two social venture capitals here in Durham.
Their job is so sexy.
They invest in prominent social ventures located in local areas, and in successful case releases them to IPO. Strong emphasis is put on maintaining social mission of the client organizations.
Personally I want to study potential of natural capital investment through such private fund, not only through govenmental and intergovernmental fund.

In the shrinking domestic economy, they confidently talked about future growth and expantion.
Though U.S. has recently experienced the market collapase, it is also the very mechanism of financial market that enables active social investment possible. Such social venture capitals grow both their organization and social ventures, and make profits for investers.

I guess individual working for such venture capitals doesn't receive that ceiling high salary like in some investment banks. However people working for their companies seems to have higher satisfaction through their jobs. They also told that the investers in general doesn't require too high IRR. Does it mean invester's profits from volatile markes is recycled into investing in sustain social ventures..?
(And I want to know the success ratio of the social venture capitals too)

The role of the financial institution is an intermidiary of currency stream so that each unit of economy can work efficiently and effectively. And it is very weird that the intermidiary make use of the stream to get thick margin.
I personal don't agree with the idea that we should accept in any situation and condition, the personal value "I wanna be super rich". Economist say it is personal choice we cannot violate, it is a totalitalianism if we deny any individual value. Democracy in capitalism denies abuse of life and human rights such as terrorism, but accepts abuse of human rights through economic activity. Part of society, and sometimes entire society can be severely damaged by other part of society which wants to pursue the extreme of individual freedom.

So,,, it is the light shed in the dark, to know people working for both the good for society and for themselves!

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