Social entrepreneurs face a challenge all entrepreneurs know all too well – raising funds to put their ideas into action.
Lindsey Beck and Catarina Schwab, co-founders of NPX Advisors, sought to answer that challenge.
With the help of MoFo partners including Anna Pinedo, Suz Mac Cormac, Timothy Harris, and associate Chris McKinnon, Lindsay and Catarina were able to bring their ideas of providing “new levels of accountability, transparency, and efficiency to nonprofit funding” into fruition.
They created a new financial instrument, the “impact security,” which combines a pay for success concept with a standard debt security. The “impact security” allows private donors, impact investors, and nonprofit organizations to successfully finance measurable social good.
Gaining support from banks including Goldman Sachs, Merrill Lynch, and HSBC, the impact security has the potential to streamline fundraising for nonprofits and is the first of its kind in the nonprofit world.
“It was very gratifying to work with the two cofounders,” says New York partner Anna Pinedo. “They are very passionate about ensuring that nonprofits get the support they need to make a real, measurable impact.”