In her investors talk, Clara Brenner explains why new social businesses are set up to be unsuccessful. The speaker strongly believes in the power entrepreneurs have to address pressing social issues, especially when it comes to urban spaces. However, she feels investors are missing the boat when it comes to investing in urban impact startups. While there is no shortage of entrepreneurial endeavor, much of it is focused on problems that don't matter compared to homelessness and transportation. There is a massive opportunity for startups and tech used for good, but seed funding is providing an enormous challenges for urban innovators.
Clara Brenner's investors talk explains how social good startups only acquire seed funding 15% of the time compared to 35% of their more traditional peers. Investors aren't providing funding because they don't think there returns or don't like funding untested business models, according to the speaker. This sets entrepreneurs up to fail because they miss out on guidance from mission-driven investors and are also entering into a new, untested space.
The investors talk ends by encouraging investors to seed the market, reduce barriers for innovators and recognize the opportunity in front of them.