The Tim Ferriss Show - #512: Jacqueline Novogratz on Building Acumen, How to (Actually) Change the World, Speaking Your Truth, and The Incredible Power of “Dumb” Questions

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Starting point is 00:04:01 delicious cereal and try it for yourself today. Use promo code Tim, that's T-I-M, at checkout to save $5 off of your order. And Magic Spoon is so confident in their product. I have boxes and boxes and boxes. It's backed with a 100% happiness guarantee. So if you don't like it for any reason, they'll refund your money, no questions asked. Get your next delicious bowl of guilt-free cereal at magicspoon.com slash Tim and use the code Tim to get $5 off. I'm a cybernetic organism, living tissue over and so on that you can apply to your own lives. My guest today is Jacqueline Novogratz. You can find her on Twitter at jnovogratz, N-O-V-O-G-R-A-T-Z. She is the founder and CEO of Acumen. In 2001, Jacqueline started Acumen with

Starting point is 00:05:24 the idea of investing philanthropic patient capital, we will talk about what that means, in entrepreneurs seeking to solve the toughest issues of poverty. As a pioneer of impact investing, Acumen and its investments have brought critical services like healthcare, education, and clean energy to hundreds of millions of low-income people. That's a big number, folks. Let that sink in. After supporting hundreds of entrepreneurs, Jacqueline and her team recognized character as the crucial ingredient for success. In 2020, they launched Acumen Academy to instruct others in global social change. Under Jacqueline's leadership, Acumen has also launched several for-profit impact funds designed to invest at the intersection of poverty and climate change

Starting point is 00:06:03 and has spun off 60 decibels, founded on the principle that serving all stakeholders is as important as enriching shareholders. Jacqueline is the New York Times bestselling author of The Blue Sweater, I'm sure we will talk about what that means and refers to, and Manifesto for a Moral Revolution, Practices to Build a Better World. She's been named one of the top 100 global thinkers by Foreign Policy, one of the 25 smartest people of the decade by The Daily Beast, and one of the world's 100 greatest living business minds by Forbes, which also honored her with the Forbes 400 Lifetime Achievement Award for Social Entrepreneurship. All that means, yes, I'm

Starting point is 00:06:42 nervous to interview this person. LinkedIn, you can find her, Jacqueline-Novigrat means. Yes, I'm nervous to interview this person. LinkedIn, you can find her, Jacqueline-Novogratz. Twitter, at JNovogratz. Instagram also, at JNovogratz. And of course, you can find Acumen at acumen.org. Jacqueline, welcome to the show. It's great to be here with you, Tim. Thank you. And I'm going to just go with the layup. I'm not going to say lazy question. It's really more of a setting of the backdrop for people who don't know you. Could you please describe your childhood, your parents? Just give us a little bit of color there so we know from where you have come. I was raised in a four-bedroom house with seven siblings, the seven of us. Amazing parents. Dad

Starting point is 00:07:27 was in the military. My mother was a force to be reckoned with. I would say it was a noisy, chaotic, loving house full of cowboys who are also expected to somehow be good. Number of your siblings have also gone on to do great things, very much on a national and global scale. To what do you attribute that? Is it just inheriting good software? Is it environmental? Are there any particular inputs or habits that your parents have? Anything that comes to mind? I'm sure you've been asked this before, but what was in the drinking water, so to speak? I think it was a funny combination of one, constraint, that when you have so many kids on a military income, you got to get entrepreneurial young, fast. And that was probably a very important piece. Number two, my mother is one of the great myth makers of all times. Myth makers? Myth makers. I remember when we were little, Bob, Mike, and I, all we really wanted was Levi's jeans.

Starting point is 00:08:32 There weren't a lot of things to differentiate us. So my mother made a deal with us and said, look, I'll buy you the dungarees, which is what they used to call jeans, from the post exchange, unless you can earn the difference for those Levi's. But I have to tell you, I'm really disappointed in you guys. Why would you need brands? You're Novogratzes. And we laugh now. We're like, what the hell was a Novogratz? But she had this sense that this was who we were. So two, kind of a driven myth-making mother, and three, this big extended immigrant Catholic family. And so this idea that to whom much is given, much is expected was also reinforced. And so I guess in a funny way, Tim, we grew up in a tribe, but also allowed to be wild

Starting point is 00:09:22 individualists who had to be entrepreneurial. And here we are. So you're known for impact investing, social impact, and all the things that we, or I should say I, mentioned in the bio that I just read. But that's not where things began from square one. You weren't just hatched out of the egg as this imminent world change. Or maybe you were on some level. I mean, your brother, Mike Novogratz, who's been on the podcast, talked about how you have had this very clear North Star for seemingly much of your life, but that wasn't the first step. In other words, you didn't just graduate from high school and start Acumen. Could you just walk us through your first professional decisions? Where did you go

Starting point is 00:10:07 after school and why did you go there? I think I did always want to change the world from the time I was six. And I guess that was part of both the positive and the pressure. And so there was always that idea that I had. But to go through college, certainly as the first, we had to pay for school. And so I worked two, three jobs the entire time I was at the University of Virginia. What were your jobs? What types of jobs? Well, mostly I was a bartender. And in the summer, I worked 100 hours a week as a bartender, which was actually quite something. When I graduated, I told my parents that I'd really never had a proper vacation and that I was going to take a year to just explore the world,

Starting point is 00:10:51 never really gone outside the United States or anything like that. And my parents, being very wise, said, we think that's fine, but at least go through the interview process. And so I agreed quite reluctantly. And I threw my resume without thinking into the boxes for foreign affairs econ majors, which were my majors. And Chase Manhattan Bank called and said, we'll take you in as an interview. And so I go into the interview, and there's this cute guy sitting across the table from me. And he says, tell me, Jacqueline, why do you want to be a banker? Which was of course the only question I wasn't ready for. And so I was like, actually, my mom and dad are making me do this. I don't want to be a banker.

Starting point is 00:11:32 And he said- That's what you said. Yeah. Yeah. I mean, I don't lie. It's probably the only answer he wasn't prepared for. He was like, well, something in him was prepared because he was like, well, if you got this job, you would be in 40 countries the next three years and you would be understanding the economic and political situation in each of those countries. And of course, as this kid that always dreamed of knowing the world, loving the world, I was like, oh God. So I was like, could we start this interview over? And he let me literally leave the room. I knocked on the door. I introduced myself.

Starting point is 00:12:07 I sat down. He was like, tell me, Jacqueline, why do you want to be a banker? And I said, ever since I was six years old, all I ever wanted to do was be a banker. Of course, there were interviews after that to make sure I had a brain, but I got the job. And sure enough, for the next three years, I was in 40 countries at a really extraordinary time when the financial systems were also in peril in the early 1980s. That was my first job. Now, how did you end up traveling the world? I suppose thinking back to my own undergrad experience and the recruiting on campus by investment banks and

Starting point is 00:12:45 so on, although this may not have been in the investment banking category, but when I think the promises of various recruiters, I associate the, you're going to travel the world, meet fascinating people, learn various A, B, and C about X, Y, and Z industries. I associate that with the management consulting pitch. So what was the job that you ended up getting that allowed you to travel like that in banking? It was an extraordinary job. It was called credit audit where the bank hired primarily liberal arts majors. I think young people who were critical thinkers who asked the dumb questions And they literally would send us around the world a month at a time. I think I was in New York three weeks one year. And you would just get this note on your desk that you

Starting point is 00:13:33 had to be in Kuala Lumpur three days from then and a package of traveler's checks, which was the way that we would get money, and a reservation at a hotel and we would go. And so it's one way the world has really changed. Because I remember talking to my boss because I had a reputation for unwittingly getting people fired by asking the really dumb questions and then uncovering. I can't let that go without asking for an example. How does that happen? What would a hypothetical or real type of question or actual question be that might get someone fired? The biggest one for me was in Switzerland when I was pretty much a solo act to look at this whole suite of Swiss banks, which everybody just assumed were safe because of Swiss banking.

Starting point is 00:14:21 And Tim, I kept looking at the numbers and the spreadsheets for this one bank and nothing added up to me. And so I went to the head of the division, the office, and I was incredibly nervous because I wasn't that confident that I was that great at all these spreadsheets. And I pointed out what I saw as real flaws and real vulnerabilities. And he essentially told me I was too young, too naive. Didn't I understand Swiss banking and that the bank was completely protected? And I scratched my head. I went back.

Starting point is 00:14:55 The numbers still didn't work. I called my boss. He yelled at me. And I just knew that I might be wrong. I might be all those things he said, but I could only tell my truth. And I literally had to hold on to the chair because I was so afraid. And I turned it in. I gave it in those days a seven, which put it on a big warning list, which meant it went all the way to the top of the bank. And it turned out that I was right. The bank failed. And I learned really young, Tim, that I went from being seen as kind of scared and not

Starting point is 00:15:31 that serious overnight to then being seen as this whiz kid. I was the same person. Nothing had changed. And how ephemeral the way the world sees you became to me. Because I knew that I was exactly the same woman the morning after that I was the morning before. So I guess learning really young, sometimes just speak that truth, even through trembling lips. Yeah. Wow, what a story. I mean, it's something that so few people, especially new hires, would actually dare to do. It just strikes me as unusual that you would have the conviction to potentially, and I

Starting point is 00:16:14 don't know the politicking or the power dynamics inside of that bank, obviously, but to piss off your boss by giving it a seven, which then flies straight up the flagpole after getting reprimanded, that's quite a move. It sounds like that wasn't a first, though, that you'd sort of cultivated this speaking of truth coming up to that point. Is that accurate? Yeah, I think it probably was. And in fact, God, you're already making me get emotional. But I think I saw myself as less courageous a voice than other people experienced me as. A great gift of my latest book, where I talked about the need to learn how to use voice, was that one of my colleagues at the time, who I hadn't seen in more than 30 years, was like, you were always the one that was standing.

Starting point is 00:17:03 And I think I always stood for the underdog, but I also just couldn't tell a lie. And they hired me for a particular purpose. And I felt like that was my duty. That was just my job. As a kid, I was the one that would fight for the underdog. In fact, I got thrown out of trigonometry for standing up for what was right. What were you standing up for? Was it the answer to something or was it a person? No, the teacher, he was a great pop quiz guy. And he had promised us that we wouldn't get a

Starting point is 00:17:34 pop quiz that week. And one of my friends had been sick and she was very, very insecure when it came to trigonometry. I said, you don't have to worry about it because this teacher told us that we weren't going to have a pop quiz and promised us. And then of course he gave us the pop quiz. And I just felt such a need to protect my friend that I stood up, I made a big deal about it. And that was the end. That was my last day of trigonometry for that year. And the worst of it is I had to do home economics for the last six weeks of the year. I'm just imagining how happy you were about that. But I think it's worth really underscoring that you develop this and reinforce this truth speaking. You take some lumps. Of course,

Starting point is 00:18:22 you're going to take lumps along the way, but ultimately, not to attribute all of your successes to that, but I think it's no small thing. One of the aspects of your story that has stuck out to me as I'm doing homework is the power of asking, I wouldn't say dumb questions, asking the questions, right? Asking questions and speaking truth. And it's just how you talk about patient capital. We might talk later about how that's differentiated from just long-term capital and long-term investing and how you differentiate the two. But if you're making a long-term sort of patient investment in yourself, like over the short term, you might get reprimanded for truth and asking questions or seemingly naive questions, but they seem to be really good long-term bets. And I suppose there's not a question so much in that, but does that resonate with you as being

Starting point is 00:19:17 true? How does that land for you when I say that? Am I missing anything? I've actually never thought about it for myself personally, but it deeply resonates that I am not comfortable and it's hard sometimes both for people who work with me and for the people who take our courses online at laying out a roadmap because the world is too complex for a step-by-step guide to how to solve poverty. But what we do have is a compass, a moral compass, and that speaking of truth and standing for truth, not only builds a sense of courage, but it deepens, I think, one's and certainly my own understanding of where lines are. So yeah. So thank you for that.

Starting point is 00:19:58 Yeah. Also, I know I'm getting on a caffeinated soapbox here for a second, but we're going to cover a lot of ground. So we have space for my caffeinated soapbox. And that is to say, these things don't manifest out of the ether when you need them most necessarily, right? You were practicing and conditioning yourself to tell the truth. And you had a choice to stuff or to speak in that moment. You made the decision to speak, rated a seven, and that gave you the positive reinforcement, I have to imagine, and more confidence to continue doing the same. But it's a skill.

Starting point is 00:20:34 I mean, it seems like a practice that you need to reinforce. Let's come back to this banking. In your retake, ever since the age of six, I've always known I wanted to be a banker. Clearly, you're no longer a banker. So what happened? What happened? You're doing these audits. And where does the next chapter enter the picture? So it started, again, having always dreamed of traveling around the world and knowing and loving the world, in fact. Now I'm in Brazil and Chile and Ecuador and truly Colombia,

Starting point is 00:21:09 falling in love with the vibrancy, the color, these stories that as a young American kid, we didn't ever get about the developing world. And it struck me in this era again, Tim, when the banks were falling apart. they had been making all these bets based on relationship and long-term debt. And suddenly the markets were in crisis and they wanted to call all their loans and they lost hundreds and hundreds of millions of dollars, billions of dollars at that time. So I would sit inside the bank looking at loans that should never have been made. often money that was actually never even put into what it said it would be put into.

Starting point is 00:21:48 Meanwhile, on the weekends, I would just be drawn to the favelas and into the slums and into these parts of the cities that were so full of life and vibrancy and work and diligent people. And I would talk to people about their businesses and realize that this was a group of people that could not even walk in through the doors of the bank. They had no confidence with the banking system. And so I, again, asking dumb questions, which may be a theme of my life, went to my boss with all good faith and said that maybe we would do better for the country, do better for the people, and actually get our money back, do better for the country, do better for the people, and actually get our money back, do better for the bank if we actually made smaller loans to

Starting point is 00:22:31 local people doing what they were doing. And he literally gave me a book called The Innocent Anthropologist. And it became very clear to me that the bank wasn't ready to pivot in that way. And so I had to go outside, which is where I've stayed, trying to disrupt systems from the outside, not the inside, which I think I'm better at. So the innocent anthropologist, I assume, was a very formalized way of giving you a book that basically says, listen, kid, that's adorable, but also very naive. I mean, is that the thrust of that gift? Yeah. I mean, is that the thrust of that gift? Yeah. I mean, he gave me two gifts, actually. That was the first gift. And then when we were talking a little bit later, and he was trying to convince me to stay at the bank, he's like, look,

Starting point is 00:23:16 you're one of our top producers and performers, but culturally, you don't really fit. You dress like Linda Ronstadt and you laugh too much, which now I think may have been code for you're not actually acting enough like an elite one of us. And I realized in that moment that not only did I want to see how we could actually use the tools of banking to solve poverty, but that if I stayed, that he was essentially asking me to be a completely different person. And that helped make the decision. he was essentially asking me to be a completely different person. And that helped make the decision. What was your next move? Some people get to checkmate in one move, but it's often an evolution. Where did you go from there? Well, the next move was telling my parents that I had made the decision.

Starting point is 00:24:00 Oh, yeah. Tell us about that. I was the scrappy bartender girl and not the more refined version that my immediate boss wanted. He really gave me an opportunity that could have changed, would have changed the direct trajectory of my life. My dad thought I was giving up that opportunity. My mother thought I would never marry. Both had truth in what they were saying. And so I think that was incredibly hard because we were all raised to quote unquote, do the right thing. I was looking for an opportunity to get to Brazil, but I found one that would bring me to West Africa, which was absolutely not on my playbook. But I realized that this was a chance to pursue a different kind of dream that was looking at taking the tools of banking and reaching low-income people. I read about Muhammad Yunus and the Grameen Bank and other heroes of mine, and I wanted to try it myself. And so I went. And as you said, it was sort of a next move. I met with absolute crushing failure, made all the worst because I turned down this really big job offer. So we're going to definitely roll up our sleeves and get into the crushing failure. But before we

Starting point is 00:25:29 do, maybe we'll get into another failure. I have no idea because I don't know the details of this, but how did the conversation with your parents go? Did you deliver it in a way that they were able to hear? If so, what was that way? Did you try it? And they were just like, terrible idea. Time will tell. Watch us. You know, this is the end. That was the end of the conversation. I mean, how did it turn out and how did you approach it? Or maybe the other way around? Well, I just told them what I was going to do. So you didn't say, I'm thinking of X. You were just like, this is what I'm doing. I'm giving you guys a heads up. Heads up. This is really, you know, it's not such a request. It's a,

Starting point is 00:26:03 this is what I'm going to do next. And my mother was like, you are out of your mind. She could be very forceful then. And what she will say now is that she kind of understood by then that I had a very strong will when I decided something. I don't think I quite understood until much later how afraid they were. This is pre-internet, pre-cell phone, pre-real understanding of what this big continent was about. The only images they had of Africa was almost as a single country rather than 54, all looking like Ethiopia during the famine of 1983. Probably the worst thing that she said to me was, you know, I could understand if you were a nun. And I was like, what are you doing?

Starting point is 00:26:51 So I think there was a lot of fear. I think there was a lot of fear. What's been so thrilling is to watch them along the journey, not only feel deeply proud, but get more and more excited. And that happened fairly quickly, as long as we had a few rules. If I went to a war zone, I didn't tell them until after I got back, because communication was too hard. It was not fair to them. I think those are things that parents don't have to deal with today because they can be in more constant contact. So before we get to the crushing defeat, which I definitely want to spend a little time on, how did you find the next opportunity? Because I think many people listening will have,

Starting point is 00:27:32 they will have some experience, maybe it's a current experience of doing something that generates income, but that is not deeply rewarding to them on some level. And they want to have a greater impact. They don't know what to do. And I'm not asking so much for prescriptive advice yet. We might get to that. But how did you at that time, especially this is pre-internet, how did you find this next lily pad to jump to? And then please tell us about your crushing defeat. Again, we had far less tools then. And so I had read one tiny article about Grameen Bank, which was still very obscure. I sent a letter to Muhammad Yunus that probably never reached Bangladesh. And then I heard from a young woman who also was at Chase that her aunt had started an organization called

Starting point is 00:28:23 Women's World Banking, and that there might be an opportunity. So I just went there and offered myself to go to Brazil. And as I said, she said, we don't have any opportunity there. We do though in West Africa. And I just took it. It was super risky. It didn't come with health insurance. It just was an opportunity. I knew that if I were waiting for the perfect, I wouldn't have done it. I also knew I might lose my nerve. And it was the only thing that was on offer to really test out my theory that the tools of business and banking could actually serve people who had been fully left out.

Starting point is 00:29:00 And I don't think it was until I was actually on the plane listening to Joni Mitchell's Blue album over and over and weeping that it really hit me that I was on my own. Why were you weeping? Was it fear? Was it something else? I think it was loss. Everything I'd left behind, no understanding of where I was going, fear, a lot of loss in transition. And then the minute I landed, both excitement for being there and yet almost immediate confrontation with the first big true failure of my life, which was that I had been told that I had this opportunity to be an ambassador to African women. I was going to help build all these microfinance organizations across the region. And I would say the arrogance

Starting point is 00:29:51 underneath was that I was going to save the world, at least this part of it. And what the confrontation helped me understand pretty quickly was that most people don't want to be saved, and certainly not by a 25-year-old white American girl whose French was not very good and who had very little understanding whatsoever of the local culture. And so I hung in there for a number of months. It was very hairy. Hairy in what way? Everything from just kind of a daily rejection where I would go to my little office in the African Development Bank

Starting point is 00:30:28 and the door would be locked. Or I was supposed to do this big conference and I would ask people for help and they'd be like, that's not my job. Okay, I didn't really know where to go. And then this one Nigerian extraordinary woman befriended me.

Starting point is 00:30:43 And she was like, you know, they really want you out, the powers that be. And so don't eat anything in front of the women who didn't want me in the country. And I said, what do you mean don't eat anything? She's like, well, they're going to poison you. And they're also talking about voodoo. Holy shit. Jesus.

Starting point is 00:31:00 That's intense. And you know, I don't believe in voodoo. But I will tell you, when you are stripped down to nothing and you're afraid to eat anything in front of people and you're being locked out of your office and you don't really have much of a safety net nor do you know a single person except for this incredible nigerian woman who's befriended you i would lie in bed and be like, is anybody here coming to get me? And then I got unbelievably sick with food poisoning, like deathly sick. Did you think it was poisoning or did you think it was food poisoning? I mean, after hearing that story, my God, I mean, I would imagine.

Starting point is 00:31:40 I couldn't go there. I couldn't go there. She thought it might be poisoning, but I didn't remember eating anything in front of anybody. And I was a little thing to start off with. And so after about eight days of just lying on the bathroom floor, I decided it was enough and told the women, trying to be respectful, also clear, that I got what they were saying. I really heard that they had not asked for anybody like me and that we shouldn't be just parachuting in to go and build things without doing it in real partnership and that that was a mistake on every level, including mine. And nobody should be treated the way that they treated me and that both were true.

Starting point is 00:32:31 That said, I left everything that I owned in the boxes that I had in the Abidjan Hilton, goodness knows whatever happened to them. And I moved to East Africa where I kind of started again, hopefully with a lot more humility and maybe a different kind of courage. Was it with the same organization? Mm-hmm. Mm-hmm. Just a quick thanks to one of our sponsors and we'll be right back to the show.

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Starting point is 00:33:35 you can easily review, rate, and home in on your top candidates. LinkedIn Jobs can help you find the right person to help you grow your business. And your first job post is free. So just visit linkedin.com slash Tim to learn more. Again, that's linkedin.com slash Tim to post your first job for free. Terms and conditions do apply. I have to ask because I'm sure I'm wondering, and I'm sure people listening are wondering, I've heard stories of resistance and conflict when people parachute into different places, whether it's with an NGO or with other organizations. I have never heard of possible poisoning. I mean, that is a next level. How do you explain that? I mean, would the intent be to make you sick, to kill you? I mean, that's,

Starting point is 00:34:25 I don't know how to make sense of that degree of kind of counterattack. Again, I think it's really dangerous to assume, but I think that what I've learned and what I used to, you know, and I used to read novels about the mystical and the magical, that in cultures including the United States that were very orally based, storytelling, myth-making can be as powerful and potent as the real things. And so there was, particularly in those years, a lot of giddy-giddy, you know, people relieved in wearing different amulets and medicines. In a way, you see the guys at Silicon Valley kind of replacing that with new things that

Starting point is 00:35:14 we do to give us a sense of strength. And so the way I always attributed it to, which is why I would never accuse anyone of having done it, but the threat of it and my own fear and isolation may have been made manifest in this literal purging that I did. The threats were not that unusual. Again, and I see it in places where there's often insecurity and deeply oral-based society. And you got to remember too, Tim, it was 30 years ago and the world operated in very different ways

Starting point is 00:35:54 then. And I just was caught up in this world that I had no understanding of. And of course, is now a place that I'm deeply in love with and love all of its different layers and see the reflection in our own societies. We just make manifest in different ways. At the time, though, you had just suffered this defeat of sorts, had really met with tremendous opposition. What was your first meaningful win after that in your mind? Could be small or big. Or the first time when you're like, okay, this isn't a fool's errand. I'm actually on to something. I'm on the right track here. That's such an interesting question. I had another crushing failure right after

Starting point is 00:36:39 where I analyzed a bank portfolio, a microfinance organization, and saw that I was excited by seeing all of the problems in the portfolio. And the CEO, rather than sharing my excitement that now we could actually fix the problems, burned my work and didn't want to work with me after that. And so I had to learn a whole new approach, clearly. That was in East Africa? That was in Kenya. So I had a second big failure. The little wins were that in my everyday life, the relationships that I was building, including with the person who served tea, with drivers, were quite real. I kept going back to this human potential that I was seeing all around me and starting

Starting point is 00:37:23 to understand the crushingly complex systems that were in their way that nobody really wanted to confront, including the supposed good guys, the NGOs, the nonprofits, the leaders who were also arbiters of who got resources and who didn't. And it actually reinforced for me why I believed in the power of business, of entrepreneurship, because I was in this other world where who got control of the resources meant everything. The first real win for me was when a woman walked into my office in Nairobi and said that she was from Rwanda, which was a country I was completely unfamiliar with at the time. In fact, I thought she said Uganda. And they had just, 1986, they had just passed a new law that abolished Napoleonic code. Under Napoleonic code, women were put in the same category as children and the mentally impaired. And until that moment, were unable to open a bank account without their husband's

Starting point is 00:38:26 signature. And she asked me if I would go to the country to do a study, if you will, for whether it might be possible to create some kind of financial institution specifically for women. It was the first time an African woman had asked me to help solve a problem. I think I was so beat up by then and yet really did feel the sense that if we could get markets to work for poor women, they would have so much more dignity than what I'd been seeing that I probably went for a three assignment and knew somewhere inside of me that I wasn't leaving to we'd built a bank. So presumably that's what happened. What happened? So that's what happened. I mean, a couple of things happened. Again, I had learned from my own lack of humility that it would have been really easy to go in there and be like,

Starting point is 00:39:22 I, I, I, I. But that if we were going to build an enduring institution, and I deeply believe in enduring institutions, that I had to be a minor role, even if I was doing a lot of the legwork. And so I was really lucky to find a small group of Rwandan powerhouse women who are my co-founders. And we did everything together. It reinforced the African adage that if you want to go fast, go alone. If you want to go far, go together. And it became one of the most extraordinary experiences of my life because I saw that you really could change a little corner of history with the right people, the right kind of capital, the right value system, and certainly a lot of hard work.

Starting point is 00:40:09 I want to just put a bookmark in that for a second and ask from that initial plane flight, crying, listening to Joni Mitchell, to that Rwandan woman walking into your office, how much time had elapsed, roughly? Roughly, probably seven months. Okay. So over that seven-month period, what were the ingredients that kept you going? Was it that you'd said to yourself, come hell or high water, I'm sticking around for a year? Had you made that kind of commitment? Was it, I cannot go back to the US with my tail between my legs and let all these naysayers prove themselves right? Was it something else? I'm just wondering what kept you kind of slogging away over that period of time? I would say that the whole first year and a half was that slog.

Starting point is 00:41:06 I would say a combination of this man, Tony Triciano, when he had given me this job offer, and he was like, you're going to go to Africa instead of do this? And I was like, Mr. Triciano, don't you understand? If I don't go, I might never do it. That moment kept coming back to me. And it's like, how do I go back to him as a complete failure? I have to show him that we can do something. But also, Tim, I saw the vibrancy. I saw the beauty in this world that I had never imagined existed with people who were so eminently capable,

Starting point is 00:41:47 but who weren't really given a chance to be everything that they could be. And it didn't seem like rocket science to me to build different kinds of systems that actually allowed their capability to flourish. And so I think it was a mix of hubris and a desire to be used in ways that I felt that I had something to offer. these local women, create something meaningful. You start to chalk up some marks in the win category. How do we go from there to acumen? What is the timeline or the series of events that leads? And I know we're covering earlier chapters, but I like really looking at these things closely because it shows the development before you reach escape velocity. And I think that makes for, at least for me, a fascinating study because

Starting point is 00:42:52 people get to see sort of how you got to the point where you could self-perpetuate and kind of build success on success. So Rwanda to Acumen. So Rwanda to Acumen saw both the power of using markets. With the microfinance, I learned that it wasn't enough that giving women just small loans was amazing, that you could give them access to credit at say 12% a year rather than 400% a year, which is what they paid the money lenders, that you could build community. My assumption that if you gave women small bits of credit, that it would be enough for them to create jobs was wrong. Most people aren't entrepreneurs. And that's probably a really good thing. I could say it as an entrepreneur married to an entrepreneur. We need the builders.

Starting point is 00:43:44 We need all these other personalities around us. So I also started a little bakery with 20 women to really understand what it would take to build entities that gave people good jobs. And that was a whole other learning point in the apprenticeship, if you will, before Acumen, that access to markets is important without the capabilities of actually using that access. We're only halfway there. I think because I was beginning to understand that I wanted to build companies, not just make small loans, that I wanted new skills. Also, in the context of East Africa at the time, degrees and other markers of success, particularly for women, seemed really important. I was often called Nsitana Kidogo, which means little girl, even though we actually created a very successful lending operation. So I applied to Stanford Business School. It was the only school I applied to. I thought, well, if I get in good, if I don't, it doesn't matter.

Starting point is 00:44:48 Why Stanford? Besides the pretty trees on Palm Drive. It was really, really hard to get an application anywhere. We only had word processors. We didn't have computers. It took 10 days to get a letter to Stanford or wherever, and then another 10 days after they sent the application to you. And then you had to write on that little airplane paper, send it back. It was a nightmare. And that particular year, Harvard on its annual report had a picture of all of the graduates with dollar signs on the back of their hats. And I thought, well, I think I might be a misfit given that I really want to solve poverty. That is so bad. That is so bad. And I have close friends who have gone to Harvard, but oh, God, that's terrible.

Starting point is 00:45:44 But put yourself back there, right? 1987, that was the height. That was the Mike Milliken. That was like the height of market belief. In fact, market fundamentalism. Gordon Gekko. Gordon Gekko, exactly. want to go back to just make money. I wanted to go back to build the tools to build companies that could employ and serve poor people. And so at Stanford, I met an extraordinary mentor named John Gardner. And I think he shaped my life as well in terms of getting me focused on the United States, the rest of the world, and talked to me about the importance of leadership, which I hadn't really thought about as much, Tim. Then I went to the Rockefeller Foundation, where I really saw the power of philanthropy. So by the time I was nearing 40, I had worked in the private sector with banking. I had built several institutions, but most notably

Starting point is 00:46:37 Duterembere, the microfinance organization, and this bakery and a couple of others. And then probably the other critical thing that happened was the Rwandan genocide. So suddenly, having worked on a social justice institution by then that had been in existence for seven years, and seeing a country explode into a bloodbath, losing many of the people that I loved and that I worked with, and seeing my co-founders play out every role of the genocide from being murdered to watching their families be murdered to being bystanders. I think that was probably one of the most important, not experiences because God forbid I'd watched it from afar, but both an understanding of patient capital, that the work of change is so often a couple steps forward and sometimes the whole thing blows up, that societies are highly complex.

Starting point is 00:47:35 And again, that at the heart of my work had to be a redefinition of what poverty was, that we so often look at poverty and we think the answer is income. The answer is jobs. What I had seen by now, both in banking and in development and certainly with the genocide, is that the opposite of poverty is dignity. choice, having opportunity, having agency over who you are in your life and what you're capable of doing. And we miss that. And that was really the beginning of Acumen, that we have all these tools. We have the superpower in capitalism, but when we raise it to the rank of religion and everything goes around one end profit, we can do amazing things, but we exclude a huge chunk of the world and we create great inequality. We're seeing that today, not to mention not consider the environment. If government decides everything or top-down approaches to aid, it's just too easy to give to the people that are close to you or for reasons that have nothing to do with anything but power. And so the question I started asking myself is, what if we looked at capital as capital, understand it exists on a spectrum, take the

Starting point is 00:48:59 power of business and capital, but rather than let it control us, control it in service of creating a world where we can actually solve our problems. Acumen was born in 2001 with that idea in mind. We're going to spend a fair amount of time on Acumen, no big surprise there. But I want to spend just a few more moments on the Rwandan genocide, because I think it may be helpful in exploring the tendency that we all have to oversimplify things. And the example that comes to mind, and this is based on reading and prepping for this conversation that I'd love to hear you speak to, is the tendency to separate the world into monsters and angels and how unhelpful that can be. And I think you alluded to it with your description of co-workers and people you knew, or certainly people you had exposure to, being on all sides of this genocide. Victims, bystanders,

Starting point is 00:50:06 perpetrators, I'm sure you had interacted on some level, even just going to the market or otherwise with people who are on all sides of this. Could you speak to that? Because I wrote it down because it seemed important, not just within the context of a genocide, obviously, but just within the context of life in general. I'd love to hear any of your thoughts. First thought is absolutely that I didn't just know people in the market. Our first executive director was jailed as being one of the highest ranking or the highest ranking planner at the genocide. Before the genocide, she was co-creating a liberal party based on multi-tribal

Starting point is 00:50:46 democracy with another one of our co-founders. But when it was clear that power looked like it was going to Hutu power or the genocide regime, she switched. And so early on, I saw those who seek power and those who seek purpose. And that power can be very tempting. And I also saw how in a time of real insecurity, and we're in one again, it can be very easy for demagogic leaders at all levels of society to prey on insecurity and sometimes make us do terrible things. And that's where Monsters and Angels came in. I was literally sitting in a prison with Agnes, the woman who was the major perpetrator, knee to knee, asking her how this could have happened. And there she was, Tim, in a pink dress, the prisoner's uniform, her head shaved bald, with a freckled face. She looked like a young woman. She didn't look like

Starting point is 00:51:53 a monster. And we had founded this institution together. We're taught that there are bad people and good people, monsters and angels. And yet the truth of the matter is that monsters and angels live in every single one of us. Monsters are our broken parts. They are our petty fears, our insecurities, the grievances that grow. And it's just too damn easy to pull into those parts when we as a society feel insecure. We blame other people. We other them. And that was very much at the heart of the genocide.

Starting point is 00:52:31 And that has very much informed the way I see the world and the way at Acumen, even the way that we talk about and inscribe our values. It's always intention. It's always recognizing the light and the dark in almost any choice that we make so that we're much more cognizant that there is no system that's all good, nor is there any human being that is all good or all bad. I worry sometimes when I hear conversations in the social media moment that we are in that it's capitalism's fault. It's socialism's fault. It's fault, it's socialism's fault,

Starting point is 00:53:06 it's stakeholders, it's shareholders, rather than, can we focus on the values here? What are we trying to solve? And then can we pull back and find ways to use the best of the tools that we have at our disposal and actually solve that problem? Everything you just said, I think it's always been important. I think it's exceptionally important when you have technologies that are in a sense designed to polarize, because the incentives are such that that becomes sort of a driving design and engineering imperative in a sense. And just to comment a bit further on that, I would encourage everyone out there to look at the work of Darren Brown. Darren Brown is a mentalist performer, also an incredible artist from the UK.

Starting point is 00:53:57 And he has a number of specials, including one called The Push. He has another I can't recall the name of, but the objective, putting ethical considerations aside, the objective is to show how you can mold people who are otherwise upstanding moral people to do terrible things, like push someone off a building or to shoot someone. And the sad reality is that it is very much possible and that it's easy to sit on a moral high horse I think to simplify it down to the black and white, people being all one or all other is not in service of solutions. I really appreciate you expanding on that. Let's jump to Acumen.

Starting point is 00:54:57 Acumen, how did you choose the name or how is the name decided? Acumen stands for perspective, insight. When we started Acumen, I was focused on revolutionizing philanthropy. And too often, the way we think about philanthropy is soft. This was saying, again, the hard and the soft. You've got to bring an edge, start with business, start with insight, build from there, and bring the same level of accountability that you would expect from a financial investment into the world of social change, therefore Acumen. So could you just recap for people? I know we mentioned it in the bio, but a lot has been discussed so far. What does Acumen do?

Starting point is 00:55:40 Acumen does three things. First, we invest long-term patient capital. This is 10 to 15-year investment backed by philanthropy. So equity and debt into entrepreneurs that are going where markets have failed, healthcare, education, energy, agriculture. We will invest not only for 10 to 15 years, but we accompany those entrepreneurs with our social capital, our access to networks, to supply chains, to knowledge, sometimes to talent. Any money that comes back, it's reinvested. As you said, Tim, to grow these companies and scale is at the heart of everything that we do. We then need to tap into more traditional forms of capital in the impact investing space.

Starting point is 00:56:25 So we also have a management company that runs several for-profit impact funds. The second thing we do is build a community of builders through the World School for Social Change Acumen Academy. And that is not only trying to identify, link, inspire the talent that exists, I believe, in every corner of the world, but also to offer rules, tools, blueprints, so that anyone anywhere who want to be on the path of social change, using this combination of head and heart, hard skills, and what I think are the even harder skills, can be part of it. The third is to measure

Starting point is 00:57:06 what matters. If you're going to say that you invest for impact, you better be able to measure what that impact is. A couple of years ago, we spun off a company called 60 Decibels that uses an approach to measuring change that we created called Lean Data, which we can talk about. It essentially upholds one of our main values, which is listening. And it measures impact not from the perspective of the giver or the investor, but from the recipients, from the customers themselves, so that we can actually serve the poor in ways that we hope to. Does the lean data, and I may ask some follow-up questions just to ensure I'm clear on- How it works. How it works. Does that apply to the for-profit investing as well, the for-profit impact funds?

Starting point is 00:57:59 Yeah. And in fact, the reason we spun it out is a number of other nonprofit and for-profit funds asked us if we would essentially provide them with lean data consulting. And we thought that, again, going back to our mission, we want to change the way the world tackles poverty. We would serve that mission better if we spun it out, let it grow. And that 60 decibels, which has been really exciting to watch, take off. I'd love to see BlackRock using it, frankly. All right, BlackRock. I'm sure there's somebody listening. Coming to get you. Who's involved with BlackRock. Let's just assume they are listening. And also for my benefit and

Starting point is 00:58:37 for listeners, could you just reiterate what lean data are? I'm going to be a pompous Princetonian. What exactly is or are lean data? Because the question of measuring impact is one that at least in my circles comes up a lot. How do you actually do this? How do you try to invest not just for ROI, but for good, for impact? But how do you do that without just waving your hands around and claiming that you've done a lot of good? I'd love to hear you expand on that. We invest in entrepreneurs that are trying to build markets where they haven't existed for people who make $2 or $3 a day, where there's no infrastructure, there's no trust, there are very few skills and talent. There's a lot of corruption and complacency. And so it would be really easy for us to essentially say that anything we do in a difficult environment is impact. And so we decided that we had to hold ourselves accountable to a

Starting point is 00:59:33 higher standard. That at the end of the day, what really matters when it comes to dignity is to record and understand the voices of those you are there to serve the poor. For many years, Tim, our impact measuring was fairly mediocre because we didn't have the tools. Once you had cell phone technology and you could text customers, suddenly you had a one-on-one communication where you weren't in the room, where people aren't always as likely to tell you the truth because they don't really think you want to hear it anyway. But in the room, where people aren't always as likely to tell you the truth because they don't really think you want to hear it anyway. But in this case, the more anonymity they had, the clearer people would give. So imagine a solar light company. We're the largest

Starting point is 01:00:16 off-grid solar investor for the poor in the world. So we have a lot of them. We could go to a company like D-Light and text 5,000, 6,000 customers simultaneously, ask those customers a series of questions from which we can deduce what matters to them. How many more hours of light do they have when they buy a solar home system that gives them three lights, a radio, a television. What is the quality of that light? We can measure carbon offset. That's easy. Has their health changed because they're no longer using dangerous, noxious kerosene?

Starting point is 01:00:53 Are their children doing better in education, which was an assumption we had when we first went into it? Then we collate all of that. And suddenly we can help our entrepreneurs understand whether they're serving people, which is sometimes shocking when they find that they actually are not in the way that they thought they were. But equally, we can start to look across a sector like solar, electricity, and we can see which companies may have the best product, but it's reaching people with the highest income. And so you've got a trade-off. Which companies are have the best product, but it's reaching people with the highest income. And so

Starting point is 01:01:25 you've got a trade-off. Which companies are doing the most to displace carbon, but they may have another trade-off? And which companies have the happiest customers? Then we can decide more effectively where we want to allocate our dollars for impact, not only for financial returns. It not only has held us more accountable, Tim, it's allowed the entrepreneurs a much deeper understanding of who their customers are. It allows us to see, are we actually reaching the poor, which is our mandate? And it's shown us where we were wrong. When it came to off-grade energy, we assumed, as I said, that kids would do better in school. They don't necessarily do better in school.

Starting point is 01:02:06 If you want kids to do better in school in really, really hot areas, get them a solar system that includes a fan. Because with the fan, the air moves at night, bugs are kept away, the kids sleep, they do better. It's a lean approach because you're not doing a three-year randomized control trial. And it is a deep approach because you're hearing from the perspective of those who actually most matter. Yeah, the three-year randomized controlled approach has its place. But honestly, I mean, and this is speaking as someone who is very involved with financing scientific studies, it's not the right tool for all jobs. And particularly when you are outside

Starting point is 01:02:45 of a laboratory with lots of uncontrolled variables, it's just trying to hammer screws a lot of the time. I think there's a real place for this lean data approach. And I have a question about how this is used. So here's a hypothetical, maybe it's not hypothetical, I would imagine you've run into this. If you are acting as a nonprofit and you're investing in various enterprises, you can apply this data or offer this type of tool across the board, I would imagine, with the underlying belief that a rising tides raises all ships. Once you are a consultancy and you are providing lean data to for-profit companies, would you not say in a given sector, run into someone who wants you to avoid conflicts by providing them this data,

Starting point is 01:03:44 which could help their businesses or business. And they might say, hey, I know that you have this valuable data. We would like to be the only one to receive it in the X, Y, and Z category. Otherwise, it doesn't really give us a competitive advantage, so why would we pay for it? Do you ever run into anything like that, much like a law firm would have a conflict check? No. I mean, when there's conflict, then you know you're onto something. And I'm looking forward to that day when we do have that conflict. I would say the more internal conversation that we have as a board is how transparent to make it so that we start actually taking seriously the level of impact

Starting point is 01:04:21 that different investors around the world actually are getting. You mean transparency in terms of what you learn, how much to make publicly available? Yeah. And it goes to the ethos. At the beginning of Acumen even, and I guess it goes to that girl we were talking about, I just wanted to know the truth ourselves. So even if the world didn't care, we would always have a forced ranking of our investments. And if you just sat there trying to defend your investment as an investor, that was the way you could get fired. If you were the one who talked about everything that was wrong with it and what made you worried, that was the way you could become more of a hero. And now we've grown quite

Starting point is 01:05:02 large. And I think we have a different set of questions that we ask. But I think it was that ethos, Tim, of holding ourselves to account for the kind of impact that we are trying to create in the world, not protect, that allowed Acumen to partner with just incredible market makers like the guys who founded D-Light, which has brought clean solar light and electricity to over 100 million people and really launched an energy revolution and taught me that the kind of investing we need to think about right now at scale doesn't only reward the building of a single company, but those companies who ultimately create entire markets. I think that's the next frontier in so many ways. So you gave an example, just one example of many of just the scale, the large scale impact that Acumen and these various spinoffs and for-profit funds have been able to have in the world. But if we go back to 2001, circa 2001, Acumen, I always like to ask, aside picked Acumen and we started, there was a bust. But you could not get a URL. And no names were working. And so I had this night at the Rockefeller Foundation where I was working.

Starting point is 01:06:38 And we came up with really, really great names, including Ain't Your Grandma's Philanthropy. That's great. I think that was my brother Mike's, but I can't remember. There was a lot of Y involved in the naming of acumen. And then I really loved the word immersion. I still do. It's one of the principles of moral imagination. There's a great line from Tilly Olson where she says, may you live a life of immersion. I'm paraphrasing, but what price will you pay? To truly understand the complexity of the issues that we are trying to solve, you have to get close.

Starting point is 01:07:14 Bryan Stevenson, the civil rights activist, says you have to get proximate. I say you have to immerse. It's the same. But when we did trials, particularly across gender, women were attracted to the word immersion, men hated it, hated it. And so acumen seemed a little less offensive to one of the two groups. How did you test it? Were you sending out a poll to a group of friends. How did you do the split testing? Well, a friend of mine, Antonia Bowering, was working for a now-no-longer.com called, I think it was called March 1st. They did this big ideation project with us. So they actually did some true consumer testing. But I also, having so many people in my life and being an extrovert, just kept asking, asking, asking.

Starting point is 01:08:06 And I couldn't find a single man who was with me on immersion. And in fact, I can remember one person was like, I just hear that word, Jacqueline, and I feel like you're making me drown in a sea. He's like, well, there is something to that. There are moments where you feel like you're drowning, but then you come out to clarity. But we decided. I never would have guessed in a million years that you would have such a gender split on immersion. Maybe I'm just a language geek,

Starting point is 01:08:34 so I find it attractive as a concept. I think now, in fact, our housing company in Pakistan, Javad Aslam, he actually named one of his funds, the Immersion Fund. Once you really think about it, it's a beautiful word. All of us right now need to immerse more in each other's lives. All of us need to design with the imagination, not just through our own lens, but with the imagination that is morally based. You don't get that if we don't have immersion. I think it's changed.

Starting point is 01:09:06 Yeah. I was just going to ask if you could just explore for a moment, and then we're going to come back to acumen, and I'm going to ask you about the earliest wins and if you could speak to those. But I don't want to gloss over moral imagination. Could you just take a moment? I think you're kind of walking into that territory, but just to frame it, what is moral imagination? Moral imagination is essentially putting yourself in another's shoes and building from their perspective. As I said, we often design through the lens just of our own imagination. That doesn't work when we're designing for people whose lives are completely unlike our own. So moral imagination starts with empathy. But I've learned time and time again that empathy by itself reinforces the status quo, or at least risks doing so. And so the idea of moral imagination is

Starting point is 01:09:59 understanding by immersing a particular problem and then thinking systemically about those issues that get in people's way, and then frankly being honest enough to recognize where people get in their own way, and then moving from there. When you say empathy in some cases enforces the status quo, could you elaborate on that? Do you mean that it's just an us versus, not versus, but like an us and them kind of the savior of the fill in the blank? Is it that dichotomy that's created? Or not that that is what empathy does, of course, but what do you mean by enforcing the status quo? I think it's even deeper. I mean, I think when I first learned about the moral imagination was in college when I was at Charlottesville, ironically, given everything that happened in Charlottesville

Starting point is 01:10:49 a few years ago. And I signed up to bring a turkey dinner and all the trappings of a Christmas to this community that was 30 minutes away from the university where low-income people lived. I was also kind of a wild co-ed, and so we had this big party. We asked everyone to bring food and toys to make a perfect Christmas for these kids. I was really excited because I felt at some level so sorry for these people that didn't get to have a Christmas. The next morning, my girlfriend and I got up and we got in her car. We loaded it with all the stuff. We were both completely hungover. We drove into this place that I'd never been to a place like that before. And it was literally when we got to the house, it's like a shanty, a shack. And suddenly I just felt shame, Tim. I was like, oh my God, like, I don't know who these kids are. I don't know what kind of

Starting point is 01:11:52 things they like. I don't know if the parents want the kids to know that somebody else is bringing them Christmas. And this is all wrong. And literally I said to Suzanne, my friend, I was like, just keep the car running. And grabbed the stuff. I ran it. I threw it on the porch. I ran back to the car. I was like, just go. And I think in a way, it was the beginning of my moral imagination that that act was

Starting point is 01:12:19 an act of empathy. It was well-intended. And I hope that they had a really lovely Christmas. But the moral imagination would have said, look, am I willing to do the work of actually understanding who these people are at the very least and building from there? If I'm not, find an organization that does. Even better, ask the questions around what got them there in the first place, and where can I be spending my time and my energy and my capital to solve that problem? And I'm not saying we shouldn't give charity. I think there's a real role for moving from that

Starting point is 01:12:58 place of empathy and from that place of unbridled love in a moment. Our job right now when the pandemic and everything that's happened in the world has broken our systems open is to think bigger than that and to hold ourselves to account at a systemic level. And that's what my obsession is. Thank you for explaining that and telling that story also, which I think drives it home. Acumen. So, wing and a prayer. Good idea. You've tested the name. Here we go. Buckle up. Do you recall any of the first wins where you're like, okay, I think this might actually do something?

Starting point is 01:13:47 Oh yeah. I recall it like it was yesterday. We had helped put together this collaboration, this deal to bring long lasting malaria bed nets into Tanzania. It started with Sumitomo, who had developed this bed net and also recognized that 95% of malaria is in Africa, and yet there was no manufacturing capability for this particular kind of bed net. And so it was a real experiment. Could we build manufacturing capability with similar throughput rates to the kind that you might get in Asia, where the long-lasting bed nets were created? We went through all these different entrepreneurs. We identified this incredible guy named Anush Shah in Arusha, Tanzania, and worked with

Starting point is 01:14:33 Global Fund to buy these nets and didn't really know what it was going to look like. And of course, I had seen a lot of things fail. This was a complex collaboration. And then I went to go visit just as the factory was getting going. And there was one line of bed net making machines. And I was like, this is cool. I love operations, factory operations. A few months later, I went back and there were four. A few months later, I went back and there were eight. And there was that moment when suddenly I was seeing hundreds of women operating these

Starting point is 01:15:08 machines that I thought, oh my goodness, we're doing this. And then they ended up creating jobs for 10,000 people, manufacturing 30 million nets a year. They ended up being 15% of global production. And when you think about that, that's like a half a billion people who have gotten access to malaria bed nets because of this little company in, not so little anymore, company in Arusha, Tanzania. I was like, bingo, this is what we're about. Boom. Proof of concept. Boom. So let's look at this example, because I'd like to explore the thought process or the process a bit, in so much as I think many people who are considering impact investing, or even perhaps starting a firm or a fund or a company that has that as its intended purpose, particularly a fund. They might solicit proposals or business proposals and then choose from that menu of options. But it seems like you started with selecting a problem and then you canvassed to find candidates. Is that how you approached it?

Starting point is 01:16:20 In the beginning, we selected sectors. We were mostly focused at the very beginning on health technologies. And then the idea was we would find entrepreneurs. I was and am such a believer in entrepreneurs. And in fact, people would say, oh, are you trying to solve malaria? And I'd be like, no, we are trying to find those health technologies that could fundamentally change people's lives and bring them dignity. Now, again, we're in a very different place where we have all local teams on the ground. Depending on the region, there's much more focus on the sectors.

Starting point is 01:16:55 And Tim, what we find then is if you think about Acumen as a laboratory, when we see a company really move up like a D- a delight, then we can start to build other companies around it to really help create that ecosystem. So we're a bit different in the US, for instance, it wouldn't make sense for us to be looking at off-grid energy or investing in the social determinants of healthcare, financial inclusion, and workforce development, which we feel are so critical to where the nation is now when it comes to the poor or low-income people. You mentioned sumitomo, which is Japanese.

Starting point is 01:17:32 And developing an ecosystem around a company is in some ways a very Japanese concept, or it's something that's been very well explored and developed and dedicated to these, I suppose, conglomerates would be a lazy way to translate that in Japan. As is a very long-term approach. Yeah, absolutely. I mean, look at some of these companies. They've lasted a very long time. They're not five or ten year companies.

Starting point is 01:17:57 I look at your story. I look at your chronology. And one thing that stands out to me, and please feel free to disabuse me of any misconceptions, but you cut your teeth in banking. You got to understand that machine from the inside. You then, well, simultaneously, in some respects, and then after, looked at microfinance, access to capital. You started a bakery. I don't think that's a small thing. You actually were boots on the ground,

Starting point is 01:18:30 getting firsthand experience in an immersive way of what entrepreneurship looked like in your chosen environment. You got your ass kicked in West Africa. But put another way, you really got an extended education on someone else's charter with someone else's organization and support. You, through that entire period of time, are developing grit, learning what doesn't work, certain approaches to parachuting in. You're learning conversely what does work. And then suddenly you're Jacqueline Novogratz, founder and CEO of Acumen. But I think it's tempting for people to jump straight to the Acumen. And I'd love to hear you answer the question, what advice you would give to young people who say they want

Starting point is 01:19:24 to change the world? Because it strikes me that if you had give to young people who say they want to change the world? Because it strikes me that if you had tried to jump straight to acumen, correct me if I'm wrong, but you wouldn't have been viewed as backable. You wouldn't have had the operational experience. It just wouldn't have worked. I sometimes worry that these young or older people, quite frankly, who could really make a positive dent in the world are putting the cart before the horse in terms of skill development. They don't have the chops, but they want to change the world. You've spoken to students. I know you've given commencement speeches, but for those people listening who are like, I just want to change the world, what advice would you give to them?

Starting point is 01:20:04 Well, the first would be this idea of just follow your passion. I don't even really understand what that means. Even though my whole life, I have been very clear about the way I wanted to create change and for whom. It wasn't this, as you said, out of the box, really understanding that we were going to use different forms of capital and support it with the right kind of talent to work a system to create real change. I would say just start. Don't start by asking, what is my purpose? What is my passion? Start by asking, what are the problems that need to be solved? Which ones attract me? And take a step toward that. Take one step and the work will teach you where you need to take the next step.

Starting point is 01:20:51 Build tools in your toolbox. If you still don't know what your passion or your purpose is as you take those steps, follow a leader and learn from that leader. There is something so powerful, and I think this is what you're getting at too, Tim, in apprenticing. I one sits at the top for all the reasons that you implied. I had to learn the gritty realities, talk about learning humility. I also saw that we could succeed. And I had to let go of a lot of my assumptions yet again. And so I do think you're right.

Starting point is 01:21:41 Skipping steps, particularly because life is both shorter than we think it is and it's longer than we think it is. It doesn't serve the world and it doesn't serve you. Here, here. I don't know if you've said this or written it, but I vaguely remember, and maybe you can provide some context here for when it was said or written, but something along the lines of if you try to keep all of your options open, you may just end up with a bunch of options. I actually think Jim Collins said that to me when I was lucky enough to be his student, and I paraphrased Jim. I say that a lot where it's like, well, you know, Jacqueline, I need to keep my options open. I'm like, seriously? Just commit to something. This,

Starting point is 01:22:27 we don't tell young people or even old people. We don't expect that enough. But I think the cult of the individual is also the cult of optionality. And the secret is that when you commit to something, particularly something bigger than yourself, it will set you free. And suddenly you will find a freedom and layering of life that you never really understood you had. That is something that I don't think I would have fully been able to wrap my head around until just in the last few years, really becoming dedicated to scientific research around psychedelic compounds. And I don't want to take us down that rabbit hole necessarily. Certainly, your brother Mike has a fair amount to say.

Starting point is 01:23:13 I'm the wrong number, guys, simply for that one. Yeah, yeah. Your brother Mike has a fair amount to say about that. Mr. This-Ain't-Your-Grandma's Philanthropy or whatever the name was. But the great relief and unburdening of me-centric living that comes from dedicating yourself to something larger is really profound. And I mean, it's not entirely altruistic. It's so relieving. It's hard to overstate that. I'm glad you mentioned it.

Starting point is 01:23:49 Well, and none of this is entirely altruistic. If we're seeking purpose, if we all buy into throws that so many men live lives of quiet desperation and we don't want to be those people, then there is no clearer path than making a commitment to problems that might be so big you won't solve them in your lifetime. Because then you are constantly just starting. You are constantly learning and unlearning and renewing. And I think that's been also the story of this work of trying to solve these big problems with entrepreneurs that are as relentless in their seeking. It's just that what drives them is to solve a problem. What does not drive them is

Starting point is 01:24:34 just profit, though they recognize they need the profit for long-term financial sustainability and scale. It's the prioritization. You mentioned following a leader earlier and also apprenticing and there are many different types of leaders out there many people who might seem to be good mentors but make terrible mentors could you speak to an example in your life of a mentor or a leader doesn It doesn't have to be John Gardner. I wrote that down just because you mentioned John in passing from, I believe that was your GSB days, right? The Stanford days. To what makes a good mentor or a good leader, the type you might want to follow or learn from? For me, there's really no one like John Gardner in my life, Tim. He was this very patrician man who almost spoke in koans by the time I met him.

Starting point is 01:25:31 We were 50 years apart in age, so he gave a lot of wisdom. Where he stood apart, and again, we need him so much right now. He was the only Republican on Lyndon Johnson's Democratic cabinet and was the head of health, education, and welfare. So he was at the table negotiating some of the great civil rights legislation. Talk about courage. He would say things to me like, focus on being interested, Jacqueline, not interesting, when I would get some fancy job offer and he would think that it's, that was a vanity project rather than a character building project. John left the cabinet and resigned his, his position in protest of the Vietnam war. And in response, he created a grassroots citizens organization at age 54 called Common Cause. And it was that level of integrity and of doing the right thing,

Starting point is 01:26:26 not the easy thing, that I think we're all yearning for in our leaders today. John could have done anything. But when I think about what legacy is, I think about him. And I look at the now, we've had over a million signups on Acumen Academy when I see these hundreds and hundreds of Acumen fellows and the entrepreneurs, I sometimes hear John's words in them. And I think this man who's been dead for almost 20 years is fully alive

Starting point is 01:27:00 with the kind of legacy that matters because he focused on investing in the world around him and not just in himself. So Jacqueline, I have good news, bad news, depending. It's actually the same news. I just don't know how you're going to take it, which is I think we're going to have to do, or I would like to do round two at some point, because there's no way we're going to cover even a fraction of what I have in front of me. We could do a do-over. Oh, definitely not a do-over. Are you kidding me? You've been nothing but net for an hour and 40

Starting point is 01:27:34 minutes. I'm not letting this one go. I would like to ask about, actually, first a short question, then a longer question. The shorter question is going to be about books. And the longer question is going to be about advice to different types of listeners. Those people who have more time than money. Maybe they're earlier in their careers. Maybe they're just in a transition. Then you have the investor types. I would consider myself an investor type also, who are looking to have more impact, make more impact.

Starting point is 01:28:01 And then to institutional, those people who might be in positions within institutions. Before we get to that, so you were kind enough to contribute to Tribe of Mentors, my last book. Thank you very much for that. And you answered quite a number of questions. One of those questions is, what is the book or books you've given the most as a gift and why? Or what are one to three books that have greatly influenced your life? Now, you mentioned a few. You can also revise these. One was Invisible Man by Ralph Ellison. Another, Things Fall Apart by, can you pronounce this author's name for me? Chinua Achebe. Thank you. There's so many words and names that I know how to read. I recognize, but I have no idea how

Starting point is 01:28:45 to pronounce. And then A Fine Balance by, oh, here's another one, Roentgen Mystery. Roentgen Mystery. There we go. If you had to pick one of these or another book, it doesn't have to be one of these three, but a book that you've given as a gift or that has had a strong impact on you for people to start with, which might you recommend and why? Of course, I recommend people also read your books, The Blue Sweater and also Manifesto for a Moral Revolution. So not to exclude those, but for the sake of conversation now, if they weren't those books, what comes to mind? I have reasons for each of those books and certainly The Invisible Man in this moment of the Black Lives Matters protests and the continuing racial reckoning. Invisible Man really taught me to not

Starting point is 01:29:32 see through anybody ever. But the book I give right now in this time of so much despair is Viktor Frankl's Man's Search for Meaning, where he really looks at people in the Holocaust and asks himself, why did some just sort of crumple up and die and others stayed resilient and strong? And that at the end of the day, no one can take our dignity away from us. And so I think that we have to be reminded right now that between stimulus and response, there is a choice. And we're in that moment. And I have seen myself personally so often that in the darkest times, we can find our

Starting point is 01:30:14 best selves. And that's our opportunity right now. And so I think for this moment, Tim, Man's Search for Meaning should be required reading for all of us. I could not endorse that strongly enough. For anyone who's listening to this also, across 500 plus episodes of this podcast, the single book that has come up most often is Man's Search for Meaning. So if you have not read this book, do yourself a favor, do everyone around you a favor, and pick it up. It is just a tremendous, tremendous book. And also a great example of someone, in this case, Viktor Frankl,

Starting point is 01:30:53 embracing something larger than himself, the completion of Man's Search for Meaning, the concept of writing this and compiling it as a book that helped him to get through so much suffering also. Yeah. And moral imagination that he had in seeing not just the ugliness of the world that is and the humility that that takes, but he truly had the audacity to imagine what could be and to see the infinite potential in every human being. Let's use that as a segue to help others to embrace the audacity to imagine what they might do and you can take these in any order and there might be other archetypes we we want to touch upon but for those people listening and i'll just grab three we have the the person with right now

Starting point is 01:31:39 for any number of reasons more time than financial resources, what they might do. And you don't have to tackle them in this order. The individual investor, so that's someone who is accustomed to perhaps investing in public equities, or in my case and many others, startups, cryptocurrency, whatever it might be, who would like to begin to experiment with investing for greater social impact or impact, and then the players in the institutional space, those people who may be at asset management firms or otherwise, who also would like to, either in a management or leadership position begin to steer the ship, at least carving off a portion of activities to focus on impact, maybe lean data, or who just as entrepreneurs within these companies want to try something.

Starting point is 01:32:36 What would you say to any of those groups? To the person with not a lot of money but time, I would say focus on both immersion and understanding the problems around us. And also another practice from the book, which is accompaniment. By accompaniment, what I mean to walk with someone, to try and understand their problem, not take it on and solve it for them, but to help them build the muscles so that they can solve it themselves.

Starting point is 01:33:03 By book, in this case, you mean manifesto for a moral revolution. And the whole idea of moral revolution is give more to the world than you take. It's not there are some who have the moral responsibility and some who do not. It's like all of us. So I really appreciate that you would ask for all three categories. When you look at the brokenness of our criminal justice system, the opioid epidemic, poverty, the arts community that's out of work, there is such an opportunity to be of use, to pay visits, to just talk to people who are lonely right now, to be more conscious about the way that we spend our money, even for small things, and buy sustainably.

Starting point is 01:33:42 And so it's building into your everyday a much greater consciousness and awareness of the fact that our action and our inaction impacts people everywhere. For the individual investor, I would say that one of the broken parts of our current system of capitalism, which bifurcates how we make money and how we give it away, is that we often disregard how people are treated inside and outside our companies, as well as the environment. And then we try to make amends for the fact that we are the status quo with our philanthropy on the outside. And that model is deeply broken. As investors, how do we think more holistically about the impact that we're making, positive and negative, with all parts of our money across that spectrum?

Starting point is 01:34:38 There has never been such opportunity as there is right now to invest in extraordinary entrepreneurs that are reimagining how to use the tools of capitalism to solve big problems. As I said, Tim, they exist in every country. And we have to think with more openness to how we would look at our overall portfolio. Again, thinking of it going from philanthropy to more market-driven returns. We have a company in the United States called Every Table, and it is a fast food, healthy, nutritious, affordable restaurant chain now in Los Angeles. It's about eight different restaurants, and with the pandemic, it just has exploded in the best ways of delivering food and partnering with governments and individual philanthropists that are willing to pay meals forward so that people in low-income parts of Los Angeles can get healthy, affordable food. With Black Lives Matter protests, what Sam Polk, the entrepreneur, understood is that he had within him, within his operation, individual employees who had the

Starting point is 01:35:46 capability to become franchisees. But in the United States, the franchise model usually expects that you will have your own capital to put into the system from the beginning. So he's created a university and he's now raised probably three of $13 million, seven-year debt at 2%. That will allow him to identify the entrepreneurs amongst his employees, give them the opportunity to start their own franchise, enable them to have $40,000 a year salaries for the next three years. And hopefully we're going to see a whole group of Black and Latinx entrepreneurs that are running every table franchises in, of, and for their communities. That's the kind of creativity that exists right now in the United States and everywhere else in the world that we work from Pakistan to Colombia. If I were, and I am, a investor that really cares

Starting point is 01:36:38 about impact, I would urge myself and urge everyone else to think more expansively about themselves as investors using all the tools at our disposal. And for the big institutions, I would say one thing, that as long as we have an investment model that is still based on extraction rather than actually investing for good, we are going to continue to build more and more inequality in ways that are fully unsustainable for this world. It has been really exciting to me to see not only a $700 billion impact investing sector emerge over the last 20 years, but also to see big companies like BlackRock and others say enough. But we've got to move from a place where we do no harm to one where real investing is not only accounted for by what a few shareholders earn, come what may, but that real investing is truly measured by the amount of the jobs, the beauty, the human capability, the opportunities that are enabled in the world.

Starting point is 01:37:53 So I would love to ask you for some simple next steps for also each of those three categories, like what people could do tomorrow. And the reason I ask that is that I think it's very easy for people to take next steps towards impact investing, whether the form of investment is time or money or energy, and to push it into the someday category. I think it's very easy to do. And I don't wrong them. I don't wrong anyone for that because it can seem like kind of stumbling through a fog if they don't have a direction in so much as if we take just an individual investor. I'll use myself as an example. the relationships and the deal flow in the for-profit sector where the pass-fail marks are very clearly defined to get to the point where I could invest in really good companies. And for people who have developed those relationships and put in the time to get an understanding of, let's just call it the more black and white capitalist model, it can be very intimidating, the idea of starting from scratch to try to figure out what makes a good impact investment. Could you speak to that

Starting point is 01:39:15 for the person who has... We could tackle the investment side first, but the individual, the institutional, and then a person with more time. What could they do tomorrow or next week, for instance, is a simple answer like, hey, if you don't want to figure this out, invest in one of our for-profit impact funds. Understanding that this podcast is not giving investment advice. I'm not a registered investment advisor, blah, blah, blah, blah, blah. But I would love to hear what some simple next steps might be. If they agree with you, they want to begin to get some skin in the game, to get on the playing field. I mean, I appreciate the self-promotional invitation there, Tim. If I'm going to go down that path, I would say that the simplest next The symbolist next step would be to get onto Acumen Academy on our website and check out the courses, including the path of moral leadership that Seth Godin, who's so extraordinary in every way, has helped us build, which takes the different practices of the book and really looks at the examples of companies that go from chocolate and coffee in Colombia to

Starting point is 01:40:26 bed nets to chickens in Ethiopia, and really shows some of the fundamental business models that have enabled extraordinary levels of change, as well as identified role models. So I would get onto the Acumen Academy. The second would be both for institutional and individual. There are increasingly trade associations, for lack of a better word, that can direct you to really strong impact investors. The Aspen Network of Development Entrepreneurs is probably the best. Andy, andde.org, I think. And so get smart, learn. On the Acumen website are also all of our companies and the stories of many of them that give a real sense, again, not only of the possible, but of ways that people can get involved. As I said, Tim, all of our actions increasingly

Starting point is 01:41:21 matter. And so paying more attention to where and how we buy and giving ourselves license within our communities to be a little radical in the way that we might make sure that we're investing in each other and giving back more than we take, I think becomes a mantra every day. Having my brother Michael at Galaxy and going to such different routes as young people, and yet all along the way asking these questions of how do you change the world? How do you change the world? How do you change the world? I actually think it's about getting started where you can with what you have and who you

Starting point is 01:42:00 are. But it's also about asking yourself the question, not, am I making more money? Am I richer, famous, more famous, more beautiful today? But rather, what am I doing in the way that I run my business, in the way that I invest my dollars, in the way that I interact with everyone from the waiter to the president of some fancy bank? What am I doing to insist on, elevate, and enable human dignity? I would start there, and then I'd get smart. You invoked the name of a mutual friend who texted me prior to this conversation also, Seth Godin. And I bring him back up because I think Seth would agree that it's easy to hide

Starting point is 01:42:49 with big aspirations in the sense that if you say, well, I just want to change the world, it's easy to hide. You can make the argument that you're not ready. You can make the argument that you have to make a little bit more money. You can use all sorts of socially acceptable excuses not to take action. And that there are, in fact, easy things, simple things. And you can do the easy thing first. If in doubt, don't hit snooze for three years. Go to acumen.org. Just commit to spending 60 minutes educating yourself. You will learn something. Or getting Manifesto for a Moral Revolution, your book. Commit to getting that on Kindle. Maybe you try it for just 20 pages. You give it a taste test. See what you think. There are

Starting point is 01:43:37 simple things that you can do first. And it's easy to hide behind the big, ambitious, world-changing thing that may or may not come. That's a way of hitting snooze, and I think absolving oneself of responsibility. And I'm as guilty of that as the next person, so I'm not casting stones. But there are some very simple options here, as you mentioned, including just going to acumen.org or acumen.org forward slash moral revolution, dig around, commit to 30, 60 minutes. There's very limited downside. And I want to ask you maybe two more questions. And one, I didn't want to ask you earlier because I didn't want to make you self-conscious, but you are really good, exceptional at nailing the Goldilocks amount

Starting point is 01:44:21 of using people's names. In this case, Tim, you use it very well. You don't overuse someone's name. It's a very effective way of, I would hope that I'm already engaged, but keeping me even more engaged. Is that something that you've always done, or is that something that you've developed somehow? Tim, you're making me laugh. You're reminding me of the first book thing I did with Blue Sweater. And I got off the stage and a famous actor came up to me and said, oh my God, you do real so well. And I was like, excuse me?

Starting point is 01:44:59 Not to imply that this is some artificial thing. I feel like it's, of course, genuine, but it's something that not a lot of people do. Or they try to play real so deliberately that they end up saying your name every other sentence. And you're like, I feel like you're trying to sell me a used car or something. But you are very natural. I actually think it goes to immersion,

Starting point is 01:45:21 which is probably why I didn't get to talk about many of the things I really wanted to talk about because I just get so focused on who you are, what you're talking about. No, it's not conscious. It's not conscious. So I wish I had a better answer. Oh, what a gift. I quite appreciated it. Well, let's give, I'm going to cheat. I'm going to ask you more than two questions, but my last question is going to be recommendations, closing comments, things you'd like to say before we wrap up for this round one. But would you like to give a teaser for other things

Starting point is 01:45:54 that you would have liked to have talked about that we didn't get around to? Is there anything you'd like to mention lest it be left out of this first edition? I really appreciate that you are even asking me that opportunity, giving me that opportunity. And I think another reason that I probably know when to say your name or not, or don't even know, but without meaning to flatter, you truly are a deeply engaging conversationalist and interviewer. And I really appreciate that.

Starting point is 01:46:23 Yeah, you really are. There are many things that I'd like to talk about in terms of what it actually means to bet on character. That I think that one of the mistakes I made at the beginning of Acumen was to be so excited by a particular technology or business idea and over time understanding character. And that you used a lot of the words, the grit, the resiliency, the vision, the ability to take feedback. A whole other conversation I'd love to have with you is on courage. I shared with you at the beginning of this that you do remind me of my brothers, plural, and that you've got just an

Starting point is 01:47:07 extraordinary level of what looks like fearlessness. And I'm betting that you've learned to flex those fearlessness muscles early in your life and you practice them all along. But because of the vulnerability and the real courage that you've shown in your podcast with Debbie Millman, there was a whole set of muscles that went untended. And that the key to us becoming not just good at what we do or famous or what have you, but becoming wise is to learn how to flex those muscles of courage that we don't always flex. And I think this is another moment in history that really demands that of us. And third, I'd love to go deeper into the holding of tensions, that we're at a moment in history where we have to learn how to find each other

Starting point is 01:48:00 across what might seem like impossible divides to cross. And yet we're all we have, each other. And we're on this earth for a short time. And it's up to us to be a generation that actually gets stuff done rather than being seen as being blind and disconnected from one another. And so Acumen has worked for 20 years in communities where people are raised to hate each other. And when I think about who our global community is, it also has been raised with many, many different people who were taught to hate each other. but not if we just focus on what we're getting from an organization or a nation or community, but the responsibility that we have for each other. And I hear that in different conversations that you've been having with people, and I'd love to go there too. Finally, I would just love to say you're really one of a kind, Tim Ferriss, and the prep and the curiosity that you bring, and frankly, the love that you bring

Starting point is 01:49:08 to every conversation and to the work that you're doing is really unparalleled. When I think of true moral imagination, it's based in a deep curiosity and people who are willing to follow that thread of curiosity to wherever it might lead. And so thank you for modeling that for all of us. Thank you so much. Talking about unflexed muscles, I haven't flexed the muscle of letting things land very much. So I'm going to tuck that away and think about it for the rest of today. So thank you very much for saying that and for providing such a wonderful conversation

Starting point is 01:49:47 to me and to everyone listening. My God, you are so good. You're so good at this. And you're such an inspiration. And I just love the fact that you have traveled so many paths that many would assume diverge, and yet you have found a way to make them converge, if that makes sense. You have the operational chops. You have the toughness and the honesty to speak truth. And I recall the process of doing homework for this, finding someone, I can't recall who it was, saying something along the lines, maybe an investor, the honesty to speak truth. And I recall the process of doing homework for this, finding

Starting point is 01:50:25 someone, I can't recall who it was, saying something along the lines, maybe an investor in one of your funds, I don't know, saying something along the lines of, Jacqueline, you always talk about love, but then we get you around the negotiating table and you're so hardcore. And you are living proof that those do not need to be mutually exclusive. Furthermore, that they can be mutually reinforcing. You can combine the hard and the soft in a way that is tremendously effective in the world. And that, in fact, there are, some might say an imperative, or there are imperatives to be able to combine those things

Starting point is 01:51:02 and to not view them as separate. And I'm just so extremely happy that I had the chance to have this conversation. And I hope it is just the first of many. So thank you again for taking the time. Thank you, Tim. And I'm just so honored, truly, and feel so, so privileged. And thank you too for making Manifest the hard and the soft. It's what we need to do in our world together. And so looking forward to many conversations as well. And I wish you good luck on this. To be continued. I love saying that. I always mean it. And I mean it very, very sincerely right now. Everyone everyone check out acumen.org there's a lot there that is worth digging into we will have show notes for everything we've discussed links galore

Starting point is 01:51:55 resources galore at tim.blog forward slash podcast that will be easy to find. And until next time, ask dumb questions. They're often the smartest questions you could ask. Be honest, bet on character, use courage. It is the mother attribute for all other attributes. I'm stealing someone else's quote, but all other attributes at their testing point require courage. And thanks for tuning in. Hey guys, this is Tim again. Just a few more things before you take off. Number one, this is Five Bullet Friday. Do you want to get a short email from me?

Starting point is 01:52:37 Would you enjoy getting a short email from me every Friday that provides a little morsel of fun before the weekend? And Five Bullet Friday is a very short email where I share the coolest things I've found or that I've been pondering over the week. That could include favorite new albums that I've discovered. It could include gizmos and gadgets and all sorts of weird shit that I've somehow dug up

Starting point is 01:52:58 in the world of the esoteric as I do. It could include favorite articles that I've read and that I've shared with my close friends, for instance. And it's very short. It's just a little tiny bite of goodness before you head off for the weekend. So if you want to receive that, check it out. Just go to 4hourworkweek.com. That's 4hourworkweek.com all spelled out and just drop in your email and you will get the very next one. And if you sign up, I hope you enjoy it. This episode is brought to you by Magic Spoon.

Starting point is 01:53:30 Magic Spoon is a brand new cereal that I eat just about every day that is low carb, high protein, and zero sugar. I just ate a huge bowl of their cocoa flavor about an hour ago after a short workout. Magic Spoon cereal has received a lot of attention since launching last year. Time Magazine included it in their list of best inventions of 2019, and Forbes called it the future of cereal. It tastes just like your favorite sugary cereal

Starting point is 01:53:55 from childhood, remember that? But it's actually good for you. Each serving has 11 grams of protein, three grams of net carbs, zero grams of sugar, and only 110 calories. It's also gluten free, grain free, keto friendly, soy free, and GMO free. All the things. It's delicious. And I don't say that lightly because most of this healthy version of X stuff is not delicious. But these guys really nailed it. Magic Spoon has nailed it. It comes in your favorite traditional cereal

Starting point is 01:54:22 flavors like cocoa, frosted, and blueberry. You can try them all by grabbing a variety pack at magicspoon.com slash Tim, or you can just grab a box or a bunch of boxes. I'm going to order some more today of the cocoa, which is my personal favorite, but there is a new contender for favorite flavor because they just launched two limited edition flavors, honey Nut and Peanut Butter, which are delicious. I am a sucker for peanut butter and it is outstanding. So I think cocoa and peanut butter are my two new favorite flavors. And fun fact, my friends are also obsessed with Magic Spoon. One of the podcast's most popular guests, Dr. Peter Attia, routinely crushes six to seven servings at a time. That's a lot. With no glycemic response. He's

Starting point is 01:55:05 looked at this with a glucometer. He likes it so much he invested. Other friends, two very fine gentlemen, and also past podcast guests, Kevin Rose and Ryan Holiday, also invested. So go to magicspoon.com slash Tim to grab some delicious cereal and try it for yourself today. Use promo code Tim, that's T-I-M, at checkout to save $5 off of your order. And Magic Spoon is so confident in their product. I have boxes and boxes and boxes. It's backed with a 100% happiness guarantee. So if you don't like it for any reason,

Starting point is 01:55:35 they'll refund your money, no questions asked. Get your next delicious bowl of guilt-free cereal at magicspoon.com slash TIM and use the code TIM to get $5 off. This episode is brought to you by Eight Sleep. My God, am I in love with Eight Sleep. Good sleep is the ultimate game changer. More than 30% of Americans struggle with sleep, and I'm a member of that sad group. Temperature is one of the main causes of poor sleep, and heat has always been my nemesis. I've suffered for decades tossing and turning, throwing blankets off, putting them back on,

Starting point is 01:56:08 and repeating ad nauseum. But now, I am falling asleep in record time, faster than ever. Why? Because I'm using a simple device called the Pod Pro Cover by 8sleep. It's the easiest and fastest way to sleep at the perfect temperature. It pairs dynamic cooling and heating with biometric tracking to offer the most advanced but most user-friendly solution on the market. I polled all of you guys on social media about the best tools for sleep, enhancing sleep, and 8sleep was by far and away the crowd favorite. I mean, people were just raving fans of this. So I used it, and here we are. Add the Pod Pro cover to your current mattress and start sleeping as cool as 55

Starting point is 01:56:51 degrees Fahrenheit or as hot as 110 degrees Fahrenheit. It also splits your bed in half, so your partner can choose a totally different temperature. My girlfriend runs hot all the time. She doesn't need cooling. She loves the heat. And we can have our own bespoke temperatures on either side, which is exactly what we're doing. Now for me, and for many people, the result, eight sleep users fall asleep up to 32% faster, reduce sleep interruptions by up to 40%, and get more restful sleep overall. I can personally attest to this because I track it in all sorts of ways. It's the total solution for enhanced recovery. So you can take on the next day feeling refreshed.

Starting point is 01:57:28 And now my dear listeners, that's you guys. You can get $250 off of the Pod Pro cover. That's a lot. Simply go to 8sleep.com slash Tim or use code Tim. That's 8, all spelled out, E-I-G-H-T, sleep.com slash Tim, or use coupon code Tim, T-I-M, eightsleep.com slash Tim for $200 off your Pod Pro cover.

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The Tim Ferriss Show - #512: Jacqueline Novogratz on Building Acumen, How to (Actually) Change the World, Speaking Your Truth, and The Incredible Power of “Dumb” Questions

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The Tim Ferriss Show - #512: Jacqueline Novogratz on Building Acumen, How to (Actually) Change the World, Speaking Your Truth, and The Incredible Power of “Dumb” Questions

There aren't comments yet for this episode. Click on any sentence in the transcript to leave a comment.