Acumen is a nonprofit global venture fund that uses entrepreneurial approaches to solve poverty. Founded in 2001 by Jacqueline Novogratz, Acumen invests in early-stage companies that provide critical goods and services to low-income communities in various sectors, including health care, education, energy, agriculture and housing.

Green Growth

Acumen reimagines India’s green job revolution. As workers in the waste supply chain struggle to make ends meet due to health and safety issues, Acumen drives innovation in waste collection through coordination, recuperation and reusing. The nonprofit aims to improve salaries and working conditions while moving forward.

By playing upon available technology, Acumen protects waste workers in India by creating access to credit and improving traceability through its investing for impact approach. Recycling waste to create greener products increases worker salaries while improving health and safety in the value chain.

Education Facility in East Africa

Acumen’s innovative approach to making a difference in the education sector is impactful. It funds and supports early-stage social enterprises that provide affordable, high-quality education to underserved communities. Since 2012, it has supported 12 companies, impacting 17 million lives.

By investing in impact, Acumen backs ventures that leverage technology to enhance learning, including companies that develop digital learning platforms and educational software that can reach students in remote areas. By focusing on teacher training and capacity building, the organization improves the skills and knowledge of educators as these initiatives help enhance the overall quality of education.

Agriculture

By supporting companies that help farmers in developing countries access markets more efficiently, Acumen ensures that farmers can sell their produce at fair prices. This includes enterprises that connect farmers directly to buyers, reducing the reliance on intermediaries. The organization supports ventures that develop and distribute agricultural technologies such as improved seeds, irrigation systems and farming equipment, which increases crop yields and farming efficiency.

Through its support of initiatives offering training and capacity building for farmers, including education on farming practices, sustainable agriculture techniques and business skills, Acumen helps farmers sell products and grow in the market. By reducing post-harvest losses and increasing profits, Acumen ensures farmers get their products to market in good condition through its investing for impact approach. Acumen has supported 52 agriculture companies, impacting more than 43 million lives.

Energy

Acumen also invests in renewable energy solutions that distribute technologies such as solar power systems, biogas plants and wind energy solutions, which help to bring clean energy to communities that lack access to reliable power. The charity works with enterprises that provide training and capacity building in renewable energy technologies, help create local jobs, build technical skills and ensure the sustainability of energy projects.

Since 2007, Acumen has deployed more than $89 million for clean energy and supported more than 40 off-grid energy companies, ultimately impacting more than 306 million people globally. This demonstrates Acumen’s commitment to ending energy poverty, especially in developing countries.

Conclusion

Acumen’s innovative approach to investing for impact has demonstrated significant success in alleviating poverty in developing countries. Its strategic funding and support of social enterprises allow it to empower disadvantaged communities and help catalyze sustainable development effectively. Its commitment to patient capital, rigorous impact measurement and leadership development underscores a holistic strategy that goes beyond mere financial investment to create lasting social change.

– Rika Mokal

Rika is based in London, UK and focuses on Good News and Technology for The Borgen Project.

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