Acumen Fund Essay

751 Words Apr 18th, 2013 4 Pages
By looking at the case as a whole and using the capability matrix assessment as a baseline for my analysis, I would recommend Brian Trelstad to invest in Ecotact. Ecotact’s mission is well aligned with that of Acumen’s.. Ecotact’s founder, David Kuria’s goal was to make a social impact through providing sanitation facilities in the underprivileged areas of Kenya. Acumen’s core goal is to invest in ventures that make an impact in the Base of Pyramid sector and that show potential to scale while bringing in a return on investment for Acumen. Ecotact ranks high in its commitment to the Acumen Fund mission because it focuses on providing a solution for the sanitary need in the Base of Pyramid space within Kenya. Furthermore, Ecotact shows …show more content…
In essence, Ecotact shows strong potential to be financially successful while making a significant social impact, which is well aligned with that of Acumen’s.
I would advise Trelstad not to invest in Meridian not because it won’t be profitable but because Meridian’s social mission isn’t very well aligned with that of Acumen’s. Although Meridian currently is making an impact on the Base of Pyramid sector this more or less fell on their lap. Their core goal is to make the most money not to make the most impact.
2) Overall, the capability assessment matrix’s rubric is clearly defined and focuses on Acumen’s three major investment criterias, whereas for example, ‘Rise Social Venture Rubric’ is more or less an opinion. The matrix does a good job of doing the initial due diligence process before they invest in a company but they should have another measurement that goes more in depth to get a more detailed and thorough understanding of potential investments. It does a solid job of discovering the potential risks and problems of a company. On the other hand, the matrix fails to see the big picture; it doesn’t measure long-term impacts well. Also, it fails to measure social impact tactfully. Finally, many of the categories within the matrix are redundant and create overlap.
BACO similar to the capability assessment matrix is inherently lacking on its own but combined with other

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