Episode Overview

Title: Jacqueline Novogratz on impact investing, social entrepreneurship and moral imagination
Podcast: LSE: Public lectures and events
Host: Professor Stefan Chambers (Marshall Institute, LSE)
Guest: Jacqueline Novogratz, Founder & CEO of Acumen
Date: February 1, 2022

In this rich and thought-provoking conversation, Jacqueline Novogratz discusses her pioneering journey in impact investing and social entrepreneurship. She explores Acumen’s distinct philosophy, the evolution and challenges of impact investing, the interplay of humility and audacity in leadership, and the critical importance of moral imagination for building dignified and inclusive systems. Novogratz also contemplates the changing landscape for young change-makers and how recent global events like COVID-19 illuminate both peril and possibility for moral revolution.

Key Discussion Points & Insights

1. Origins & Influences (01:20–03:09)

• Formative Experiences:
  Jacqueline credits her upbringing in a military, immigrant, and Catholic family for shaping her worldview—emphasizing curiosity, duty, community, and service.
  Quote:
  • “...from very early, almost the guide rails, if you will, of those three influences had enormous impact. ...a real sense of duty to something bigger than myself.” (02:30)

2. The Acumen Manifesto: Standing with the Poor (03:09–04:03)

• Foundational Belief:
  Acumen’s model insists on starting with and actively including those traditionally excluded or overlooked, in both philanthropy and investment.
  Quote:
  • “...when you start the design by focusing on including those who've been excluded, overlooked, underestimated, that you actually build the structures that allow for problem solving and inclusivity.” (03:41)

3. On Privilege and Responsibility (04:03–06:35)

• Debate: ‘Stand with’ vs. ‘Get out of the way’
  Jacqueline argues against disengagement. Instead, she encourages those with privilege to use their platforms responsibly and inclusively.
  Quote:
  • “...extend the platform of your privilege to those who do not have access... The more I have, I feel a greater responsibility to not hide it, but rather use it on behalf of people who want to be part of the conversation.” (05:08)
• Humility and Audacity:
  Leaders must balance these seemingly contradictory virtues. Quote:
  • “Use it with humility. But don't throw audacity out either. See each other as equals, neither above nor below.” (06:04)

4. Evolution of Acumen & Redefining Poverty (06:35–08:51)

• Original Thinking at Acumen:
  • Focused on patient capital—long-term, high-risk investments in entrepreneurs solving market failures for the poor.
  • Measures impact beyond financial return; reinvests profits into further innovation for the poor. Quote:
  • “The opposite of poverty isn’t income. The opposite of poverty is dignity. ...the ability to have choice, opportunity, the freedom to decide how you can live your life.” (07:33)
• Mixing Markets & Humanitarian Ethos:
  Acumen blends the best of market mechanisms with social purpose.

5. The Impact Investing Landscape (08:51–11:47)

• Growth and Pitfalls:
  Impact investing has grown rapidly, but risks losing sight of true social purpose when it chases competitive financial returns over meaningful impact. Quote:
  • “Where it went haywire… is when I'll sit with people who want to end hunger for the extreme poor and make a 20% financial return.” (09:54)
• Necessity of Patient, Early-Stage Capital:
  Warns that without support for early, high-risk ventures, innovation ecosystems for poverty solutions will stagnate.

6. Collective Leadership & Partnerships (11:47–12:53)

• Complexity Over Scale:
  Jacqueline stresses that global problems require collective, not individual, solutions. Collaboration is necessary, though challenging. Quote:
  • “Our problems are not too big, they're too complex for any one individual or organization to solve them. We will only solve them through collective leadership.” (12:18)

7. Creating Role Models for Future Change-Makers (12:53–15:06)

• Emergence of New Role Models:
  Today’s youth can find inspiring examples within their own cultures and communities, not just among global celebrities. Quote:
  • “...in almost every community, we can find people who can serve as role models.” (13:49)
• Broadening Young People’s Aspirations:
  Calls for education systems to celebrate diverse changemaker paths.

8. Covid-19: Peril and Possibility (15:06–16:59)

• Systemic Failures and Hopeful Innovations:
  The pandemic spotlighted both global selfishness—especially in vaccine distribution—and extraordinary collaborative innovation. Quote:
  • “...balanced on a precipice between peril and possibility. ...never have I felt more possibility in my entire lifetime.” (15:39, 16:40)
• New Models for Capitalism:
  Imagination—rather than defaulting to old systems—can unlock more sustainable, inclusive futures.

9. The Moral Revolution: Compass over Roadmap (16:59–20:14)

• Jacqueline’s Manifesto:
  Technical tools alone won’t remake institutions—requires moral imagination and a “compass” rooted in shared humanity, dignity, and sustainability. Quote:
  • “If we want to move the world away from systems that have put money, power and fame... at the center... and replace them with systems that put our shared humanity and the sustainability of the earth [at the center], then we need a new set of institutions.” (18:16)
• From Consumers to Citizens:
  Advocates a shift in identity: active, responsible citizens who give more to the world than they take. Quote:
  • “...the revolution is neither above nor below. It comes from inside. And if all of us gave more to the world than we took from it, the world would be a very different place.” (19:52)

Notable Quotes & Memorable Moments

• “The opposite of poverty isn’t income. The opposite of poverty is dignity.” — Jacqueline Novogratz (00:04, 07:33)
• “Use it with humility. But don't throw audacity out either.” — Jacqueline Novogratz (06:04)
• “Our problems are not too big, they're too complex for any one individual or organization to solve them.” — Jacqueline Novogratz (12:18)
• “If all of us gave more to the world than we took from it, the world would be a very different place.” — Jacqueline Novogratz (19:52)
• “We truly are each other's destiny and … we really need each other.” — Jacqueline Novogratz (04:36)
• “Collective leadership is hard. It is incredibly messy...” — Jacqueline Novogratz (12:18)

Timestamps for Key Segments

• Formative influences and childhood: 01:44–03:09
• Acumen’s founding manifesto: 03:09–04:03
• The debate on privilege and participation: 04:03–06:35
• Reimagining poverty & Acumen’s model: 06:35–08:51
• Assessment of impact investing field: 08:51–11:47
• The challenge of partnerships & leadership: 11:47–12:53
• Role models for young social entrepreneurs: 12:53–15:06
• COVID-19’s lessons: 15:06–16:59
• The Manifesto for a Moral Revolution: 16:59–20:14

Conclusion

This episode synthesizes Jacqueline Novogratz's philosophy that real change comes from moral courage, persistent humility, and deep partnership. She critiques superficial approaches to social investment and calls for a deeper, more inclusive, and imaginative transformation—moving from systems that prize profit to those anchored in dignity and shared prosperity. Listeners are left with a challenge: to give more than they take, and to become the kind of citizens who catalyze a truly moral revolution.

For further insights, Jacqueline’s books "The Blue Sweater" and "Manifesto for a Moral Revolution" expand on these themes with moving stories and practical guidance.