Episode 150: Michael Whelchel

Michael Whelchel is committed to changing the status quo and raising the expectation of capital to a more expansive level with impact investing. Michael’s extensive experience with impact and sustainable companies leads the sector. Michael has worked with over 150 impact and sustainable companies and funds, more than any firm in the sector.

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In 2007 the old economy driven by the single gear of profit maximization reached a dead end in the financial crisis. It was a moment of reckoning during which Michael left his fifteen-year career in private equity to form Big Path Capital with his partner, Shawn Lesser, leveraging the engine of capitalism for an expansive economy built on natural, social, and financial capital.

Recognizing that impact investing isn’t just a different way of investing but a superior way of deploying capital, Michael is committed to challenging the status quo and to raising the expectation of capital. In this vein, Big Path has created a number of first-in-class initiatives demonstrating SmarterMoney+ TM Maximize Impact, Maximize Return. These include the Five Fund Forum, Impact Capitalism Summit, and Impact & Sustainable Trade Missions.

Michael received his BA summa cum laude, Phi Beta Kappa from the University of the South in Sewanee, TN and received a joint MBA and MEM (Master of Engineering Management) from the Kellogg School of Management, Northwestern University. Michael is an advisory board member of the Croatan Institute and the Babson Center for Global Commerce and is a member of the Social Venture Network and Net Impact.

3 Key Points

• Diversity is not just the right thing to do; it’s the smart thing to do.
• Infusing impact into your brand is the best way to protect your mission through the funding process.
• You’ve got to have investors who understand and respect the mission of the company.

What We Talked About

In this episode, you’ll learn:

• 02:11 – raising the expectation of capital
• 03:18 – advantages for companies that focus on well-being of all stakeholders
• 03:51 – benefits of workforce diversity
• 04:13 – long-term implications of a more expansive economic view
• 05:09 – diversity as competitive advantage
• 08:35 – how companies can protect their mission during funding
• 12:00 – infusing impact into your brand
• 13:45 – how to find the right investors
• 16:36 – how focusing on impact investors affect financing
• 20:36 – local financing vs. wider view
• 22:54 – contributing as a company
• 25:57 – how an impact focus has affected his company
• 29:24 – obstacles/barriers to growth
• 31:05 – the values that drive his business

Actionable Tips

1. Be persistent.
2. Be true to who you are.

Resources Mentioned

• https://www.bigpathcapital.com/
• https://www.impactterms.org/
• https://vitalfarms.com/
• GIIRS: Impact Rating Scale https://iris.thegiin.org/b-impact-assessment-metrics
• B Corporations https://bcorporation.net
• Conscious Capitalism https://www.consciouscapitalism.org/

Resources for Your Business

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