The World’s Most Unreasonable Trailer from Unreasonable Institute on Vimeo.
Guest post by Teju Ravilochan
Teju Ravilochan is co-founder of the Unreasonable Institute, an acceleration program for entrepreneurs tackling social and environmental problems. Each year, it unites 25 world-class entrepreneurs from across the globe in Boulder for 6 weeks. They live under the same roof, work with 50 mentors, pitch to 100 investors, and build relationships with portfolio managers from 20 investment funds, called “Capital Partners.” E + Co is proud to be an Unreasonable Institute Capital Partner and this post explains why we sent E + Co COO Gina Rodolico to live at the Unreasonable Institute for 3 days this past summer.
Picture this: 22 entrepreneurs from 15 countries, who’d journeyed to the United States to attend the summer-long Unreasonable Institute, packed into a bus traveling 3,000 miles round-trip from Boulder to San Francisco. They’d each practiced their pitches 50 times, they knew their stuff cold. And they each had 6 minutes to present to 80 of the impact investment space’s top funders. The stakes were high, but they were ready. They got on stage and earned a standing ovation.
The only problem? Nobody got any money.
But why?
The answer came when we got back to Unreasonable headquarters in Boulder. All of us, staff and these 22 entrepreneurs, lived together in one big house, where we shared rooms, meals, and our lives for 10 weeks. Remarkably, the 60 mentors who joined us, including the former Managing Director of Investments at Google.org, the founder of a $200 million investment fund, and a Silicon Valley VC who’s exited companies for more than $700 million, lived in this house as well for between 3 days and 2 weeks. They brushed their teeth next to these entrepreneurs, went for hikes with them, shared midnight conversations with them. And 7 of our entrepreneurs received funding from them!
When we dug deeper, we came to a simple realization: capital flows through relationships, not pitches.
So for the second Institute we ran this past summer, we took this lesson to heart. We reached out to over 20 impact investment funds and invited them to be our Capital Partners. These funds have included Acumen Fund, RSF Social Finance, First Light Ventures, and of course, E+Co, who sent COO Gina Rodolico to live with us in Boulder for 3 days.
With this partnership, E+Co gets to know thrice-vetted entrepreneurs (a number of which are focused on energy solutions for off-the-grid customers in the developing world), trained by world-class mentors, and backed by a global network of over 140 partners, as potential investments. There’s no pressure on E+Co to invest in any of these entrepreneurs, but E+Co does have the chance to build relationships that enable it to monitor the progress of these entrepreneurs over time, assessing how well they deliver on the milestones they’ve committed too.
Our entrepreneurs learn from an amazing fund like E+Co what makes an investable energy company to them, and can grow their companies accordingly. They also have a relationship with Gina which gives them a foot-in-the-door when they’re ready to discuss investment. And of course, if both E+Co and one of our entrepreneurs are the right fit, investment is much more likely to happen than if our entrepreneurs were pitching to a roomful of investors.
For this reason, we’re incredibly excited that E+Co has agreed to be a Capital Partner for the 2012 Unreasonable Institute! By building relationships with potential investees in this way, instead of attending pitch fests, E+Co and the other 20 Capital Partners converging at the Unreasonable Institute, are creating a powerful foundation for future deal-flow, based on human connection, and much more likely to be a match.
Note to Entrepreneurs: Applications are open for the 2012 Unreasonable Institute right now! If you’re an entrepreneur dedicated to tackling the world’s greatest social or environmental problems (or know someone who is), head to http://unreasonableinstitute.org/ and apply by November 10!