GrayGhost Ventures: Do Angels Have Wings?

What exactly are impact funds? Who can participate in venture funding? The absence of clear answers to some of these questions has kept even top-notch Indian investors away from impact investing. Through this Q&A with Arun Gore, President & CEO of GrayGhost Ventures, OPEN tries to empower HNIs with information so that they gain the confidence to participate in these investment streams and create new wealth

How is impact investing different from other venture investing?

What is the minimum threshold for investments in such funds and what is the usual timeframe for these investments?

What has been the performance of such funds in terms of returns? What is the benchmark expectation?

How is impact evaluated? What weight is given to impact vs. returns by such funds? Or is it a combination range that’s desired?

I believe maximum impact and returns are desired. neither is more important than the other. It is our philosophy that a company that is successful economically will have greater and sustained long-term social impact.There is no reason to sacrifice either performance or returns.

What kind of ventures does an impact fund invest in?

dLight, a leading solar lantern firm started in India to replace hazardous kerosene lanterns, has been successfully scaled across more than 20 countries. bKash, a Bangladesh initiative, will soon be the largest mobile financial service provider in the world and today serves over 20 million customers in less than four years of operation. mKopa is a Kenya-based operation that has now expanded its sophisticated pay-as-you-go model to Uganda and Tanzania.

Please share one or two memorable experiences in your journey as the chief of an impact investment fund.

The happiness and pride in the face of kids who have just acquired study lanterns from dLight. They guard it as a very prized possession, something so simple and ordinary for the rest of us.

What are the pros and cons of investing in a global fund vs. in an Indian fund?

The cons to a global fund are not to extend too far, especially into regions where the fund manager has no expertise.

Can an individual in India invest in your fund? How? If not, what needs to be done to facilitate such investments?

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