Funding Changemakers as if Change Matters
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Funding Changemakers as if Change Matters

Social Entrepreneurs to the Rescue

In our time of transition, moving to the Digital Era connecting us globally, storytelling has reemerged as the way to sell consumer products, to gather investors in startup companies, to change government policy, and to address long unmet environmental and social conditions.

Social entrepreneurs are among the best of these storytellers, speaking often from the first person singular as to how a person in need or a legacy process for daily activity was the catalyst for seeing the challenge as solvable, and the solution as worthwhile for doing well by doing good.

Media forums such as the TED and TEDx Conferences attract vast global audiences to hear this good news, and to delight in the craft of a founder story told with full passion for moving to a previously unachieved outcome.

Yet, it would be naive to think that “social entrepreneurs” singlehandedly solve the insolvable.  Many social entrepreneurs succeed through building enormous networks of likeminded and complementary actors scattered in industry, government, stakeholder communities and the media.

Watch the successful social entrepreneur on a TED stage, well-dressed and well-spoken, connecting with the audience authentically.  It would be easy to believe that foundations or investors fully or even partially funded the work that got them onstage.  In a survey of Ashoka Fellows in North America during the height of the Great Recession’s impact on philanthropy (2010), Urban Logic found that  social entrepreneurs personally sacrifice much to commit to and pursue their missions:

  • credit scores and personal net worth drop while salaries are deferred, and funding ebbs and flows into their organizations,
  • relationships with family and friends ebb and flow producing stress and anxiety, and
  • upon successfully championing their change in the broken paradigm, the market expands to take over and build on the first social entrepreneur’s vision, often without recalling how the vision emerged from sweat equity.

For university undergraduates and those with advanced degrees entering an economy with massive student debt and paltry job prospects, pursuing the passion to change broken paradigms is quite appealing.

Funding Changemakers as if Change Matters

Three decades ago, a McKinsey partner, Bill Drayton, coined the phrase “social entrepreneur.”  Later, empowering “everyone is a changemaker” became the bedrock of Ashoka’s mission.  Bill acted out of concern for the changemaker’s lifestyle, wanting to fund and mentor health in that.  Plenty of foundations fund “programs” and “projects.”  Bill Drayton cherished care-taking the human visionary – similar to Steve Jobs’ iconoclastic call to arms “Here’s to the crazy ones…

Yet today, as brand buffing or examples of corporate social responsibility for market segments of customers, corporate priorities seem to be calling the shots on which social entrepreneurs get funded to promote what changes in the world.  The categories chosen for corporate challenges or foundation grants are often too faddish or rigid to define the multi-layered stories of benefits to be achieved and resources to be tapped more effectively.

Would other types of funding lead to more diversity and continuity in change-making, and thereby improve the lives and careers of changemakers?  We think so…

Bruce Cahan

Bruce Cahan is CEO and co-founder of Urban Logic, a nonprofit that harnesses finance and technology to change how systems think, act and feel. He is an Ashoka Fellow, a Consulting Professor at Stanford University's Department of Civil and Environmental Engineering, and a CodeX Fellow at Stanford's Center for Legal Informatics. Bruce was trained as an international finance lawyer at Weil Gotshal & Manges in NYC (10 years) and as merchant banker at Asian Oceanic in Hong Kong (2 years). Bruce graduated The Wharton School at the University of Pennsylvania (B.S. Economics 1976) and Temple Law School (J.D. 1979), and is licensed as a lawyer in California (2006), New York (1980) and Pennsylvania (1980).

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Technology takes over the Law
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Technology takes over the Law

Our commercial world is becoming a cascade of EULAs:  End Use License Agreements, shrink-wrapping us and our rights and remedies into confirming to however the product or service offeror sees fit to treat consumers.  Not just software, but banking online, employment applications, job search sites, and even places where dinner reservations are made impose a daily diet of EULAs, beyond human reading capacity.

These agreements are so frequently a facet of our lives – a kindred spirit – that few of us read or have the time to read them.  So we “click-through” EULAs, unaware and seemingly uncaring of the risks, value-barter, and consequences of trusting merchants with consumer identity, credit card number, social security or their digital detritus from hours of browsing, dripping cookies through the cyberspace of disconnected lives connected for commercial and surveillance purposes through the Internet.

In a wired economy ruled by contract law speeding transactions faster and faster, the legal gymnastics of navigating what one’s rights are is attracting startups to build applications that can “read” what EULA or other document is being presented (e.g., EULAlyzer), interpret its variance from a “normal” contract or other document, and generate alternative verbiage as a negotiated compromise (e.g., Docracy).

Likewise, high legal fees for litigation drawn out over multiple years are being whittled down by various automated research and discovery services (e.g., Lex Machina for patents or Blackstone Discovery for litigation discovery), and mediation services to accelerate compromise or resolution of disputes in commercial, family and other litigation settings.

For lawyers, technology has moved beyond Microsoft Office’s Word  for creating documents, Excel for spreadsheets and Adobe PDF for storing documents.  Technology has now come to dominate the function of lawyering, and the tasksNYC Checker Cab that clients formerly paid only lawyers and paralegals to perform.

The technology-phobic lawyer, clinging to her barely “smart” Blackberry inside a New York City taxicab, may want to retool and reconsider the landscape created by technologies conquering the law.

The bedside manner of the national and state bar associations may not yet fully understand the profound changes coming to the practice of law.  To keep up with current trends, for starters, to glimpse into the future, check out Stanford University’s CodeX:  Center for Legal Informatics, where legal tech startup founders graze and launch from regularly.

Bruce Cahan

Bruce Cahan is CEO and co-founder of Urban Logic, a nonprofit that harnesses finance and technology to change how systems think, act and feel. He is an Ashoka Fellow, a Consulting Professor at Stanford University's Department of Civil and Environmental Engineering, and a CodeX Fellow at Stanford's Center for Legal Informatics. Bruce was trained as an international finance lawyer at Weil Gotshal & Manges in NYC (10 years) and as merchant banker at Asian Oceanic in Hong Kong (2 years). Bruce graduated The Wharton School at the University of Pennsylvania (B.S. Economics 1976) and Temple Law School (J.D. 1979), and is licensed as a lawyer in California (2006), New York (1980) and Pennsylvania (1980).

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Banking for the Uninitiated
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Banking for the Uninitiated

Over the past few years, Urban Logic has looked at how banks reflect society’s priorities, and cause multiple impacts in doing so.

In order to understand “banking,” numerous books, professional journals and a deluge of popular works after the 2008 Credit Crisis have come forward to demystify the “black box of banking”, so that it can be simply understood.

Two of our favorite books that explain banking as it is currently practiced today are:

Other good reads on banking and money tell tales of bankers and banker hubris, and those are fun literature too!

Bruce Cahan

Bruce Cahan is CEO and co-founder of Urban Logic, a nonprofit that harnesses finance and technology to change how systems think, act and feel. He is an Ashoka Fellow, a Consulting Professor at Stanford University's Department of Civil and Environmental Engineering, and a CodeX Fellow at Stanford's Center for Legal Informatics. Bruce was trained as an international finance lawyer at Weil Gotshal & Manges in NYC (10 years) and as merchant banker at Asian Oceanic in Hong Kong (2 years). Bruce graduated The Wharton School at the University of Pennsylvania (B.S. Economics 1976) and Temple Law School (J.D. 1979), and is licensed as a lawyer in California (2006), New York (1980) and Pennsylvania (1980).

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