Impact Investing with a Gender Lens

04/21/20 • 45 min

Startup LAWnchpad is the podcast that educates entrepreneurs about forming, growing and protecting a startup. Startup LAWnchpad is produced by the Entrepreneurial Law Clinic at Fordham University School of Law in New York City.

Episode Description: Julian Constain (Fordham Law ‘20) interviews Ana Demel, Vice-chair and Secretary of the Board of Directors of Pro Mujer, Inc. about the origins of this social enterprise, its history and current mission, and the legal matters that can arise out of such a unique corporate structure.

Episode Roadmap:

[:30] Julian Constain introduces himself and Ana Demel, who shares the origin and mission of Pro Mujer as well as a snapshot of the successful organization, which helps poor women in Latin America.
[7:03] An overview of the three-pronged empowerment mission of the company, including financial services, health, and training.
[10:30] The complexities and strategic points of operating in six different countries throughout North and South America, and what it means to be a social enterprise.
[14:25] The benefits of claiming 501(c)(3) federal tax exempt status and the ways in which profits of for-profit subsidiaries can be invested into the mission of a tax exempt organization.
[21:37] Responding to regulatory changes and planning for the future with corporate restructuring, in order to maximize the organization’s mission.
[23:13] Legal challenges that companies might face when meeting corporate governance regulations in the international finance and health sectors.
[28:07] Examples of balancing Pro Mujer’s company vision while also complying with corporate governance.
[34:25] The process of introducing Pro Mujer’s services into new countries and the challenge of moving capital from country to country.
[40:16] A look at what’s next as Pro Mujer works to fulfill its mantra of empowering women in Latin America.

Tweetables:

“I realized that every improvement in how the organization was run meant an improvement in the way it could serve these women in Latin America.” — Ana Demel
“Microfinance involves lending micro amounts, primarily to women, to help them in their businesses....You help them help themselves.” — Ana Demel
“Three years ago we took a really hard look at what we were doing as an organization, and we came up with a strategic plan that envisions Pro Mujer as a platform for many different services.” — Ana Demel
“We want to impact more women in a more impactful way, and it’s not just a matter of growing the number of our financial services clients. It’s knowing that we’re growing what we’re doing for all these clients.” — Ana Demel
“The key to being tax-exempt is that all the work we do is for the purpose of furthering our charitable mission, which is to help women in Latin America.” — Ana Demel

Mentioned in This Episode:

Pro Mujer

Additional Resources:

Fordham’s Entrepreneurial Law Clinic
Follow us on Twitter @FordhamELC

Sponsors:

Disclaimer:

The information contained in the Startup LAWnchpad podcast and any materials associated therewith (the “Podcast”) is for educational, informational, and entertainment purposes only. It does not constitute legal advice or tax advice with respect to any particular circumstance. The Podcast is not a complete overview or analysis of the topics presented and may contain information that varies in different jurisdictions and is subject to revision, interpretation, or nullification after the date of recording. The transmission of information to you does not create a lawyer-client relationship between you and any host, guest, or their respective employer, including but not limited to Fordham University School of Law and Lincoln Square Legal Services, Inc. None of these parties shall be liable for any loss that may arise from any reliance on the Podcast. You should not rely upon the Podcast or treat it as a substitute for legal advice. You should consult a lawyer familiar with your particular circumstances and licensed in your jurisdiction for legal advice.

Episode Roadmap:

[:30] Julian Constain introduces himself and Ana Demel, who shares the origin and mission of Pro Mujer as well as a snapshot of the successful organization, which helps poor women in Latin America.
[7:03] An overview of the three-pronged empowerment mission of the company, including financial services, health, and training.
[10:30] The complexities and strategic points of operating in six different countries throughout North and South America, and what it means to be a social enterprise.
[14:25] The benefits of claiming 501(c)(3) federal tax exempt status and the ways in which profits of for-profit subsidiaries can be invested into the mission of a tax exempt organization.
[21:37] Responding to regulatory changes and planning for the future with corporate restructuring, in order to maximize the organization’s mission.
[23:13] Legal challenges that companies might face when meeting corporate governance regulations in the international finance and health sectors.
[28:07] Examples of balancing Pro Mujer’s company vision while also complying with corporate governance.
[34:25] The process of introducing Pro Mujer’s services into new countries and the challenge of moving capital from country to country.
[40:16] A look at what’s next as Pro Mujer works to fulfill its mantra of empowering women in Latin America.

Tweetables:

“I realized that every improvement in how the organization was run meant an improvement in the way it could serve these women in Latin America.” — Ana Demel
“Microfinance involves lending micro amounts, primarily to women, to help them in their businesses....You help them help themselves.” — Ana Demel
“Three years ago we took a really hard look at what we were doing as an organization, and we came up with a strategic plan that envisions Pro Mujer as a platform for many different services.” — Ana Demel
“We want to impact more women in a more impactful way, and it’s not just a matter of growing the number of our financial services clients. It’s knowing that we’re growing what we’re doing for all these clients.” — Ana Demel
“The key to being tax-exempt is that all the work we do is for the purpose of furthering our charitable mission, which is to help women in Latin America.” — Ana Demel

Mentioned in This Episode:

Pro Mujer

Additional Resources:

Fordham’s Entrepreneurial Law Clinic
Follow us on Twitter @FordhamELC

Sponsors:

Disclaimer:

Previous Episode

From Startup to Exit

Episode Description: Moyosola Soyemi (Fordham Law ‘20) and Eileen Gaffney (Fordham Law ‘20) interview Selin Sonmez, co-founder of Knock Knock City, Co., about the business process from startup to exit, including the various legal and business issues entrepreneurs should consider on their road to acquisition.

Episode Roadmap:

[:30] Moyosola Soyemi and Eileen Gaffney introduce themselves and Selin Sonmez, co-founder of the recently acquired Knock Knock City, who shares the inspiration for her startup and her studies in industrial design.
[8:45] Is it necessary to have an exit strategy when founding a company? The benefits of choosing a corporation over an LLC.
[11:39] Selin shares the online resources she utilized to find answers to legal questions and the point at which she began consulting with a lawyer instead.
[16:37] Tips for building a brand while protecting intellectual property rights, and financing without fundraising through maximizing SEO and partnerships.
[20:47] Questions to ask yourself before proceeding with a buy-out, including how to determine if the buy-out company is one that you want to partner with.
[27:28] Legal and logistical challenges of partnering internationally.
[29:02] Negotiating deal terms, both independently and with the guidance of lawyers.
[33:07] How to obtain accurate valuation of your company when selling.
[37:37] A look at signing day and what life looks like for Selin after the acquisition.
[41:35] The value of engaging in design thinking when looking for new business ideas.
[44:44] Selin shares advice from the lessons she learned on the path from startup to exit.

Tweetables:

“An exit strategy was always only in the back of our minds. Our focus was on growing.” — Selin Sonmez
“Ask yourself, if we sell, is this the right person? Does this deal match our vision?” — Selin Sonmez
“It’s always good to consider lawyers as business people too, who will be helping you and pointing out details you’ll be missing because you’re optimistic and want to be fast and get the deal done.” — Selin Sonmez
“There’s always someone who has been there, done that, and there is value in seeking advice from them.” — Selin Sonmez
“The right brain is a muscle. The more you practice it the more it evolves. So, there’s no such thing as not being creative; you can learn to be.” — Selin Sonmez

Mentioned in This Episode:

Additional Resources:

Fordham’s Entrepreneurial Law Clinic
Follow us on Twitter @FordhamELC

Sponsors:

Disclaimer:

Next Episode

ESG

Alexa De Leon (Fordham Law ‘23) and Jordan Phelan (Fordham Law ‘23) interview Helene R. Banks, Partner at Cahill Gordon & Reindel LLP, and co-chair of Cahill’s Mergers & Acquisitions and Corporate Advisory practice groups, about ESG — what it means, ESG considerations over the lifecycle of a business, and how entrepreneurs should approach disclosures regarding ESG. They also discuss greenwashing and green claims.

Episode Roadmap:

● [:40] Alexa De Leon introduces herself, Jordan Phelan and today’s guest Helene R. Banks.

● [2:30] An overview of the three major components of ESG practices and how they work together.

● [4:22] Main concerns regarding ESG for early stage entrepreneurs and startup companies.

● [7:06] The impact of ESG on investor interest and an overview of the current value of impact investing.

● [10:23] Diversity, transparency, and other critical features of ESG investing.

● [12:58] NASDAQ disclosure requirements and the ESG requests of a reasonable investor.

● [15:14] The role that strong ESG practices play in a company’s exit strategy.

● [19:44] Key considerations for environmental, social, and governance practices in the early stages of a company.

● [21:06] Greenwashing claims and how they can negatively affect a company.

● [25:36] Helene’s advice for crafting organized efforts around ESG.

● [28:45] A look at the future impact and role of ESG.

Tweetables:

● “If you’re just starting out and you have a clear sense of your mission and purpose, it's a lot easier than having to figure it out later.” - Helene R. Banks

● “ESG is really a key value point for investors.” - Helene R. Banks

● “ESG is not a short-term value proposition. It’s a significant long-term plan.” - Helene R. Banks

● “When you are raising money in the private market, you have to discuss with your investment community what you’re doing. And part of what you’re doing is regarding your ESG initiatives.” -Helene R. Banks

● “There is a significant advantage to having your ESG bona fides in place before you try to exit.” -Helene R. Banks

● “You have to be clear on the difference between what you actually have done and what you are aspiring to do.” - Helene R. Banks

● “At some point, we won’t be talking about ESG because it will just be what companies do.” - Helene R. Banks

Mentioned in This Episode:

● Cahill Gordon & Reindel LLP

● Helene R. Banks

Additional Resources:

● Fordham’s Entrepreneurial Law Clinic

● Follow us on Twitter @FordhamELC

Sponsors:

● Nasdaq Educational Foundation

● Fordham’s Entrepreneurial Law Advisory Council

Disclaimer:

Helene Bank’s comments in this Podcast are for general information purposes only and not intended to advertise her Firm’s services, solicit clients or represent the Firm’s legal advice.