A YEAR UNLIKE ANY OTHER

ANNUAL REPORT

1 Introducing Acumen

4 About Acumen 1 5 Letter from Acumen’s Founder & CEO 6 Executive Summary 9 Our Global Reach & Impact

Deep-Dive: COVID-19

12 Standing With the Poor in 2 a Year Unlike Any Other 15 Case Study: Esusu 16 Case Study: Mauqa Online

Acumen in 2020

18 Milestones 3 19 Investment Portfolio 22 Acumen Academy Tad Philipp Tad

Our Global Community

28 What It Means to Be a Partner 30 Board, Advisors & Partners 4 33 Financial Overview 34 Important Information 35 Acumen Manifesto

2 INTRODUCING ACUMEN

3 ABOUT ACUMEN

For 20 years, Acumen has invested in Fellowship programs, online courses and entrepreneurs solving the toughest social impact accelerators, which together challenges of poverty. These bold innovators make up a global community of thousands not only have the ability to imagine of leaders and hundreds of thousands of audacious new solutions, they also have course-takers. the grit and determination to make those solutions a reality. We raise larger pools of capital to scale our most promising ventures to address At Acumen, we use philanthropy to create the world’s most pressing problems. impact for the poor. Guided by our formula We currently manage three returnable for success — investing the right capital funds through Acumen Capital Partners. into leaders with the right character, and One is focused on scaling solutions in off- supporting them with the right community grid energy in East , the second on — our approach is interdependent and innovations in agribusiness, education and multifaceted. clean energy in Colombia and Peru, and the third on climate resilience for smallholder We invest patient, philanthropy- farmers in West and East Africa. backed capital into entrepreneurs whose companies bring innovations in off-grid Through our approach, and together with energy, inclusive agriculture, decent work our global community, we believe we can and critical services. To date, Acumen has eradicate systemic issues of poverty and invested $137 million of patient capital impact millions of low-income people in 139 companies that together have around the world. transformed the lives of 309 million people. Acumen has been named one of Fast Company’s We spread our ethos, principles and Top 10 Most Innovative Not-for-Profit Companies practices to equip the next generation of and Acumen Founder & CEO Jacqueline leaders to make change through Acumen Novogratz was named one of the Forbes Academy, the world’s school for social 100 Greatest Living Business Minds. change. The Academy includes our nine

4 LETTER FROM ACUMEN’S FOUNDER & CEO

Dear Friends,

If we have the chance to find our best selves in the darkest times, then 2020 gave us the chance to make ourselves anew. It was a year of reckoning, both personal and institutional, a year of pain and awkward discomfort. But if discomfort is a proxy for progress, hopefully 2020 was a year that not only awakened us but also helped catalyze a reimagining and rebuilding of every institution, community and nation. the willingness to disrupt ourselves: for if we aren’t willing to change ourselves, how That included Acumen. Though we couldn’t dare we think we can change the world? physically immerse ourselves in the We will renew our understanding of patient communities we serve, we gained new capital, investing not only in individuals tools to get close to the problems of poverty but in communities. That will demand us that we came to solve. I personally was to become ever more creative in using our once again filled with a sense of reverence tools of capital, of accompaniment and of and awe for the capacity of human beings storytelling. Recognizing that our problems to respond to crisis and support one are too big for any single organization to another. And I was reminded that change, collaboration and partnership the opposite of poverty is not wealth — will be key. the opposite of poverty is dignity, choice, access and freedom. Most important is to recommit to the same north star that has guided Acumen since This past year reinforced how much our the beginning: to change the way the world dignity is mutual and entwined. tackles poverty and build a world based Philanthropists gave more, our team worked on dignity. We still have a long way to go, harder, entrepreneurs extended themselves but we have the skills, the tools, the moral fully into their communities, Fellows imagination and the confidence to address transitioned their entire programs to gather our world’s most pressing problems. online and our Partners large and small asked what more they could do. The results Let me thank you on behalf of everyone speak for themselves: we’ve never made a at Acumen for standing with us so that we greater impact in the course of a single year. can stand with the poor. And may 2021 be a better year, not just for those privileged few, There can be no going back to what was, but for all of us. for COVID-19 exposed the extent to which our economic systems overlook the most vulnerable people and the planet in the name of profit. Now it is to each of us to reimagine the world we must rebuild together. I know that for Acumen, and Jacqueline Novogratz perhaps for every institution, it will take Founder & CEO, Acumen

5 EXECUTIVE SUMMARY

It is an understatement to say that 2020 was made in the off-grid energy sector, a year unlike any other in Acumen’s history. Acumen convened sector stakeholders to When COVID-19 first began to spread, develop the Energy Access Relief Fund, a one thing was clear to us: this health and first-of-its-kind, target $80 million debt relief economic crisis would hit the low-income fund, to ensure that the 470 million people communities we served the hardest. If who have gained access to energy over the ever there was a time to double down on last decade don’t lose it. Acumen’s commitment to stand with the poor and vulnerable, it was now. In addition to its COVID-relief support, Acumen continued to invest in innovative Immediately after the pandemic was new companies out of its philanthropically- declared, Acumen sprung into action to get backed pioneer portfolio. We also announced much-needed capital to our entrepreneurs our second returnable fund, the Acumen whose communities were on the front lines. Early Growth Fund, focused We raised nearly $6.5 million across two on agribusiness, education and clean emergency response funds for our investees energy in Colombia and Peru. Further, we and Fellows to ensure that the most deployed capital for an initiative to invest in vulnerable would be supported. Seeing the businesses that enable climate resilience for risks that COVID-19 posed to the progress smallholder farmers in West and East Africa. Soumya Sankar Bose

6 Despite the challenges of 2020, Acumen year made us rethink many things — from did not lose momentum in spreading its the type of capital we deployed to how we ethos of moral leadership. We expanded partner to make change — it also unlocked our Fellows program to four new regions: new opportunities for our work, such as Spain, Bangladesh, Malaysia and the United how we deliver our leadership curriculum Kingdom. In response to the pandemic, or how we engage our global community we pivoted all eight of our in-person virtually. In these difficult circumstances, Fellows programs to virtual and semi- Acumen’s values served as a foundation to virtual delivery. adapt and to stand with the poor in the face of crisis. In May, we launched Acumen Academy, the world’s school for social change, bringing our +Acumen online courses and in-person Fellowship programs together under one brand, platform and website. The launch coincided with the release of Founder & CEO Jacqueline Novogratz’s new book, Manifesto for a Moral Revolution: Practices to Build a Better World. Due to travel restrictions, what had been planned as a multi-city, in-person book tour to promote the book, transformed into a virtual, grassroots campaign to spread Acumen’s leadership principles. The team participated in 125 virtual events and media opportunities reaching more than 100,000 people. The book is a Los Angeles Times best seller and has been recognized as one of Forbes and Bloomberg’s best books of 2020.

There is no rule book for a year like 2020, no map to show us the way. While the

7 NUMBER OF OUR COMPANIES THAT FAILED 0DUE TO THE PANDEMIC BY YEAR END OUR GLOBAL REACH

America East Africa Investments: 24 Investments: 33 Investments: 37 Fellows: 168 Fellows: 135

Latin America Pakistan West Africa Investments: 10 Investments: 15 Investments: 10 Fellows: 47 Fellows: 127 Fellows: 43

ACUMEN ACADEMY REGIONAL PARTNERS

Bangladesh Malaysia Spain United Kingdom Fellows: 20 Fellows: 20 Fellows: 24 Fellows: 22

In addition, we have 10 investments managed at the global level, as well as 109 Fellows who participated in our Global Fellows program, which ran from 2006-2017. Figures represent cumulative investments and cumulative Fellows since program inception.

9 OUR GLOBAL IMPACT

Pioneer Investing

$137M $76M $33M Cumulative Investments Under Capital Returned Invested* Management + Reinvested

139 15 101 309M Cumulative Countries Active Lives Impacted Companies Companies

Acumen Academy Returnable Funds

KawiSafi Ventures Limited 715 Focus: Off-grid energy in Fellows and Kenya.

Acumen Latin America 8 Early Growth Fund Active Fellowship Programs Focus: Agribusiness, education and clean energy in Colombia and Peru. 1.1M (managed by ALIVE Ventures) Course Registrations Climate Resilience Initiative Focus: Climate resilience for smallholder farmers in 193 West and East Africa. Countries Course-Takers Are From

*Since 2001. Figures in USD, M represents millions. DEEP DIVE: COVID-19

11 STANDING WITH THE POOR IN A YEAR UNLIKE ANY OTHER

Responding with urgency After 20 years of investing in entrepreneurs to support low-income tackling the toughest problems of poverty, Acumen’s priority was to support its communities through COVID-19 investees and Fellows so that the vulnerable COVID-19 was officially declared a pandemic populations they served would not get left on March 11, 2020,* but even before the behind. Not only were these entrepreneurs virus crossed borders, signs that a crisis best positioned to respond because of their was brewing began to emerge. At Acumen, access to communities on the front-lines one of those initial warning signs came of the pandemic, but also many were being in January when lockdowns in China and overlooked by traditional aid and other neighboring regions disrupted investees’ sources of relief, making Acumen’s support supply chains for solar energy products. even more critical. As the virus spread globally, it became We reevaluated our approach to deploying apparent that health challenges and capital. While Acumen typically makes debt lockdowns would have devastating or equity investments in its companies, we economic consequences on communities determined that grants would be the best and businesses across the globe, tool to support the relief efforts. Guided by particularly among the most vulnerable. the belief that capital should work for us, not We started hearing firsthand accounts of control us, the Acumen team collaborated the consequences of the pandemic on our across functions and regions to quickly entrepreneurs and the communities they design funding vehicles that would be both served. Many low-income workers could not flexible and streamlined in order to direct work remotely when lockdowns went into support where it was needed most. effect and found themselves unemployed The result was two emergency response and even more financially vulnerable. funds: the Acumen Emergency Facility Others worked in essential jobs where (AEF) and the Acumen America Emergency social distancing was not possible or where Fund. The facilities were designed to provide personal protective equipment was not a mix of grants and loans distributed available, putting them at increased risk directly to Fellows and investees. Despite of exposure. In March, Acumen reached this unconventional solution, our Partners out to its Fellows and investees to and Board of Directors stood with us to understand their pandemic-related needs. meet the needs of the moment. With What we heard back was clear: the scope their support, Acumen was able to raise of the crisis was vast and unpredictable, nearly $6.5 million, and the first round of and support was urgently needed.

*World Health Organization. “WHO Timeline - COVID-19.” Available on: https://www.who.int/news/item/27-04-2020-who- timeline---covid-19.

12 disbursements were made in April, only a the financial instruments and technical matter of weeks after the pandemic was support to meet those needs. As a result of declared. Acumen’s leadership, this effort culminated in the development of the Energy Access To date, Acumen has deployed $5.66 million Relief Fund (EARF) — a first-of-its-kind, in emergency funding to 109 entrepreneurs, target $80 million debt fund. The EARF is impacting roughly two million lives and tentatively slated for a first close in early ensuring business continuity into the 2021, and aims to provide relief loans to at future. Acumen investees and Fellows have least 90 energy access companies, protecting used the funding to provide meals to food- jobs and keeping the lights on for more than insecure communities in Los Angeles, offer 20 million people who would otherwise be telemedicine and virtual mental health left without power in the midst of the worst coaching to individuals in Pakistan, ensure health and economic crisis in a century. access to at-home and virtual learning resources to children and adults in Sierra In addition, Acumen joined the World Leone, protect the livelihoods of smallholder Economic Forum’s COVID-19 Response farmers in Colombia impacted by supply Alliance for Social Entrepreneurs, an chain challenges and much more. unprecedented collaboration between 84 global leaders representing civil society, foundations, corporations and others to Tackling Big Challenges mobilize support for social entrepreneurs on the front-lines of the crisis. Acumen Through Partnerships is leading an effort within the Alliance to engage corporations in scaling social At the same time that Acumen initiated enterprises alongside Alliance members its emergency response conversations Yunus Social Business, SAP, IKEA Social internally, the team also began to coordinate Entrepreneurship, the Euclid Network response efforts externally. There was and EY. a growing risk that progress toward the United Nations Sustainable Development While this past year tested Acumen in Goal 7: Affordable and Clean Energy, would many ways, it also unleashed the type be lost due to the impacts of COVID-19 on of collaboration, commitment and moral clean energy companies and customers. imagination needed to design new solutions Recognizing this, Acumen convened that met the needs of the moment. Most stakeholders across the sector. What began importantly, it reinforced that changing the as a handful of sector investors in early way the world tackles poverty will take all of March grew to nearly 90 investors, donors us — Acumen’s Partners, Board of Directors, and sector leaders in just a few short weeks. Fellows, investees and teams across the With Acumen at the helm, a coalition globe — all working together to stand with emerged to mobilize resources to help the poor through COVID-19 and long after off-grid energy companies in sub-Saharan the crisis subsides. Africa and Asia weather the economic impacts of the pandemic.

By April, this coalition had conducted rapid response surveys confirming that hundreds of companies in the energy access sector were at risk of closing their doors. These companies needed help fast. The coalition began working to design

13 $6.5MRAISED ACROSS TWO COVID-19 EMERGENCY FUNDS TO SUPPORT OUR INVESTEES AND FELLOWS

$80MTARGET DEBT RELIEF FUND DEVELOPED TO ENSURE THAT MILLIONS DON'T LOSE ACCESS TO OFF-GRID ENERGY

14 CASE STUDY ESUSU

Samir Goel & Abbey Wemimo are co-founders of Esusu, a credit-building This COVID-19 pandemic platform that helps low-income Americans establish or improve their credit profiles. coupled with the racial When lockdowns started across the reckoning we are a part U.S., Esusu knew its customers would be of has been a wake-up vulnerable to the economic fallout. In call for all of us...We have response, the company reviewed customer to make sure this pandemic data and determined that 65 percent of doesn’t push marginalized customers would be unable to pay their communities even further rent, leading some to be evicted or turn to predatory lenders. In partnership with behind the starting line. Acumen, the company began to mobilize support for its most at-risk customers. Samir Goel & Abbey Wemimo To date, Acumen’s grant has enabled Esusu Esusu to provide 192 renter households making under $25,000 per year with emergency rent relief, and has catalyzed other funding to support many more households.

15 CASE STUDY MAUQA ONLINE

Saiyna Bashir

Fellow Muhammad Mustafa is co-founder of Mauqa Online, a company employing If the AEF funding had informal sector workers as professional cleaners, caretakers and cooks in Pakistan. not happened, we would COVID-19 has become a significant health have been forced to and economic crisis in Pakistan — the shut down. We had been country has the third highest infection rate speaking to other investors in the region — and is hitting low-income in the country but there communities particularly hard. Using was no climate to raise Acumen emergency funds, Mauqa Online an investment in, and this was able to add new services, including disinfectant cleaning services to help homes was literally our only hope. and businesses fight COVID — and in doing so, sustained 75 livelihoods, including staff Muhammad Mustafa and part-time helpers. Currently operating Mauqa Online in Islamabad, Rawalpindi and Lahore, the company plans to expand and employ even more informal sector workers.

16 ACUMEN IN 2020

17

Juanita Escobar MILESTONES

Despite unprecedented challenges in 2020, Acumen INVESTING did not lose ground on its mission to serve the poor and spread our ethos of moral leadership — SCALING & PARTNERSHIPS from mobilizing to raise COVID-19 emergency relief funds to launching new accelerator programs LEARNING to drive innovation, and more. View our highlights from 2020 below.

FEBRUARY

Acumen hosts its Energy Longtime investee d.light Summit in Nairobi bringing reaches 100 million lives together 90+ stakeholders impacted milestone with its to explore how to close the clean-energy products. energy access gap by 2030.

MARCH

The World Health In response to the COVID-19 Organization characterizes pandemic, Acumen’s Fellowship COVID-19 as a pandemic. programs shift to a first-ever virtual model to deliver its leadership curriculum.

APRIL

Two COVID-19 emergency Along with more than relief facilities are launched to 50 other founding members, support Acumen’s investees Acumen joins the World and Fellows as they weather Economic Forum’s COVID the impacts of the pandemic. Response Alliance for Social Entrepreneurs.

MAY

Acumen Academy launches Jacqueline Novogratz’s second a new website and platform book Manifesto for a Moral to make its online courses Revolution: Practices to Build and community accessible a Better World launches and to anyone, anywhere. virtual book tour begins.

The Path of Moral Leadership, a Acumen America hosts a new Acumen Academy master virtual demo day series for class, is released based on the health startups to present their principles of Manifesto for a solutions to Medicaid and Moral Revolution. managed care leadership.

AUGUST

Acumen announces the Acumen America & final close of its Latin Acumen Academy host a America Early Growth Fund series on poverty and racism to invest in impact-driven in America in partnership early growth companies in with its CEOs working Colombia and Peru. across the U.S.

The United Kingdom Fellowship program is launched, Acumen Academy’s ninth Fellowship program and fourth with a Regional Partner.

SEPTEMBER

Jacqueline Novogratz IKEA Social Entrepreneurship releases a new TED Talk, & Acumen Academy Award What It Takes to Make $50,000 to social enterprises Change, on practices for in East Africa, as part of building the sustainable a joint accelerator for systems we need. 19 enterprises.

The - Acumen Student Social Innovation Challenge awards $200,000 to 17 student-led enterprises solving problems of poverty.

OCTOBER

Acumen hosts the annual Partner Gathering, a virtual convening of its global Partners to learn from Acumen’s entrepreneurs and leaders.

NOVEMBER

As part of TED Countdown, Acumen is awarded $30M Acumen hosts TEDxAcumen, from the Green Climate Fund an event exploring solutions to apply towards its Energy at the intersection of poverty Access Relief Fund. and climate change.

DECEMBER

Acumen and IKEA Foundation partner to grant $1M to the Energy Access Relief Fund for emergency loans ahead of its first close. INVESTMENT PORTFOLIO

More than ever, the events of this year have Innovating at the intersection of climate reinforced the importance of using capital to change and poverty has steered our alleviate poverty. In March, when COVID-19 energy strategy for more than a decade, was declared a pandemic, our investment and it is beginning to guide our approach teams pivoted to provide whatever support for investing in agriculture. In energy, we was needed to keep our companies have the world’s largest equity portfolio operating. At the end of the year, we are in the off-grid and clean energy sector proud to report that none of our companies with $32 million cumulative invested in failed due to the pandemic. 28 companies. 2020 was our fourth year leading the Pioneer Energy Investment Over the year, we made new philanthropic Initiative, which has offset more than 60,000 investments in 13 innovative enterprises tons of CO2 through its investment in 10 — including Zing Health, a Chicago-based companies. In agriculture, the growing insurance company providing affordable impacts of climate change continue to health care for Black and Hispanic senior threaten farmer productivity. As a result, citizens, and Haqdarshak, a technology we’ve invested in companies experimenting platform connecting informal workers in with new climate-resilient technologies. India to government welfare benefits. We For example, our new investee Kheyti — were also able to exit three companies founded by two India Fellows — is helping returning a total of $5 million — including farmers be more resilient to volatile an early exit from KopaGas, a company temperatures, drought and soil erosion providing cleaner-burning cooking fuel with its low-cost greenhouses. in Tanzania, and Sanergy, our seven-year investment in an innovative sanitation We know that philanthropy can be a model in Kenya. Both were exits to strategic powerful tool to unlock other forms of investors that will support the growth of capital across the investment spectrum. these companies going forward. This year, in addition to its philanthropic investing, Acumen closed its second In the United States, we continued to returnable fund as part of a growing fund innovations that confront issues of portfolio of funds designed to address poverty and systemic racism across health problems of poverty at scale. In August, care, workforce development and financial ALIVE Ventures, a fund manager that is inclusion. Acumen America has now built sponsored by Acumen, reached a final close a portfolio of 26 companies and is tackling for its $28 million returnable Acumen Latin barriers to accessing capital. More than America Early Growth Fund focused on 50 percent of its companies are led by agribusiness, education and clean energy founders of color, 38 percent of its founders in Colombia and Peru. identify as women, and 80 percent of its portfolio is based in regions underserved by traditional venture capital.

19 Our Pioneer Portfolio in 2020

29 $8M 46M 37 70 New and Invested Lives Technical Participants Follow-On Impacted Assistance on Company Investments Grants Boards

Pioneer Investments by Sector*

3 Agriculture

8 Education & Workforce Development 3 Energy Financial Inclusion Health 8 Housing

Water & Sanitation 30

0 5

* 30 Pioneer Investments by Region

0 5 America East Africa Global India 5 Latin America Pakistan West Africa

5

*Figures represent cumulative investments under management: $76M, excluding unrealized gains and losses.

20 PERCENT OF OUR ACUMEN AMERICA COMPANIES ARE 50LED BY FOUNDERS OF COLOR

PERCENT OF OUR ACUMEN AMERICA FOUNDERS IDENTIFY AS WOMEN

3821 ACUMEN ACADEMY 2020

22 Saiyna Bashir

In 2020, we saw our community of Revolution: Practices to Build a Better World, thousands of leaders around the globe with thousands of attendees from more come together in new ways to learn what than 60 countries. entrepreneurial moral leadership looks like in action — even in the face of crisis. The expansion of our Fellows program continues at pace. We added four new In May, we launched the world’s school for regions this year through affiliate-operated social change: Acumen Academy. Acumen relationships — Spain, Bangladesh, Malaysia Academy includes a new visual identity, and the United Kingdom — welcoming 188 community platform and website, and new Fellows across all of our programs. brings together our Fellows programs and These new cohorts are disrupting systemic +Acumen online courses under one roof. issues in their local communities — from With curriculum ranging from business a Bangladesh Fellow helping women regain models for social enterprise to adaptive control of land and property through legal leadership, the platform allows Fellows aid, to a Spain Fellow transforming the lives and course-takers to dive deeper into of vulnerable children through musical the issue areas they are working on, instrument lessons, and more. as well as connect with others addressing the same problems. While our in-person Fellows program was disrupted by the pandemic, we As of 2020, Acumen Academy has had identified virtual and semi-virtual delivery 500,000 course-takers sign up for more alternatives. As many of our Fellows do not than one million courses. One highlight have access to reliable internet connections, from this year’s curriculum was a new in Colombia we experimented with content class based on Founder and CEO Jacqueline delivery through messaging platforms like Novogratz’s new book Manifesto for a Moral WhatsApp. Creating safe spaces for Fellows

23 to share personal experiences from behind a Accelerator included 19 teams of social computer or phone screen was challenging, entrepreneurs from Kenya, Uganda, Rwanda and we’re continuing to build our capacity to and for a five-month program to reach thousands without compromising the strengthen the capacity of their enterprises. depth of in-person transformation. Two teams received $25,000 to scale their businesses and 16 teams received business We’ve seen an increasing need to develop continuity funding. and nurture early-stage ideas and emerging social entrepreneurs. This year, we launched This year, it’s become even more clear that two accelerator programs to help fund democratizing access to learning is critical new student ideas and scale existing social to moving the needle on poverty alleviation. enterprises. The Rockefeller Foundation- With Acumen Academy newly launched, Acumen Student Social Innovation we will continue to grow our community Challenge, a five-month virtual experience, and cultivate the next generation of leaders mentored more than 7,200 students from ready to build a more just, inclusive and 135 countries to turn their ideas into sustainable world. enterprises. Students developed their business models and pitched for up to $20,000 in funding. The Acumen and IKEA Social Entrepreneurship East Africa

24

Juanita Escobar KEVINE KAGIRIMPUNDU, CEO OF UZURI K&Y We are now more open- minded to scaling our UZURI K&Y is a shoe manufacturer in Rwanda that recycles waste into functional business. Scaling a business footwear. Kevine Kagirimpundu’s vision is must be planned and we to brand Africa as a leader of sustainable had no idea how to do fashion items. UZURI K&Y trains women so before we joined the and youth in their factory outside of Kigali accelerator! with the skills needed to turn rubber tires into fashionable footwear. The UZURI K&Y Kevine Kagirimpundu team joined the East Africa Accelerator UZURI K&Y to learn new strategies for scaling their business. Today, the company employs 85 people and its shoes are being worn as far as , Japan and the U.S.

25 BONOLO MATHEKGA AND DIGVIJAY SINGH, ...there was a big contrast CO-FOUNDERS OF DRIZZLE between how Tuberculosis was being handled in the Bonolo Mathekga and Digvijay Singh were were alarmed at the rising number Americas versus Africa of Tuberculosis (TB) infections in their and India. It wasn’t like the home countries of South Africa and India. problem [was] Tuberculosis After discovering that accurate tests diagnosis, the problem were expensive and inaccessible to rural [was] that people needed areas, they founded drizzle: a medtech it at a certain price point company offering screening tools that can [and] accessibility. be administered in a patient’s home or a rural health clinic. Through The Rockefeller Digvijay Singh Foundation-Acumen Student Social Innovation Challenge, Bonolo and Digvijay drizzle received funding to further develop their product and enterprise and ensure that low-cost quality TB testing is available to those who need it most.

26 OUR GLOBAL COMMUNITY

27

Zlatko Batistich WHAT IT MEANS TO BE A PARTNER

Zlatko Batistich

Building entrepreneurial solutions to tackle the toughest problems of poverty requires a So how did Acumen change to long-term commitment to creating outsized impact. Acumen’s global community of respond to COVID-19? It didn’t. Partners* includes more than 300 of the That’s the thing about Acumen’s world’s most forward-looking individuals, approach. Acumen didn’t need to corporations, foundations, governments and change its principles to address thought leaders that support our mission. the crisis. Acumen simply had to apply them. Amidst this daunting Over the course of a year, our Partners learn alongside us, share their expertise pandemic that exempts no daily through strategic engagements and dig need from its peril, Acumen has, into our successes and failures on donor- as it always has, stood with and exclusive expert calls, virtual and in-person in communities to sustain, to insights events, trips to experience our invigorate and to empower. work in the field and more. Madeleine Schachter This year, due to COVID-19, we shifted Artist, Author, and Assistant Professor our engagement approach from in-person to virtual to continue to connect our at Weill Cornell Medicine

28 his company is transforming agriculture and livelihoods through their work with Our commitment to social smallholder farmers in Sierra Leone. In entrepreneurs is based in our belief October, we hosted our global Partner that the world’s biggest challenges Gathering where Partners virtually met need diverse, local problem solvers, CEOs and Fellows leading high-impact and this is what led us to partner with work in vulnerable communities — like Acumen to support social enterprises Lalah Rukh, a Pakistan Fellow whose in East Africa. Through our co-worker social enterprise Science Fuse is inspiring Pakistani students, especially girls, engagement we have brought IKEA’s to pursue careers in STEM. capabilities and resources to support social enterprises scale their impact We also saw a new level of engagement across the region, which is especially with our corporate Partners. This year IKEA important during the challenges of Social Entrepreneurship provided coaching COVID-19. and mentoring to the 19 teams in our joint East Africa Accelerator and, as part of the Åsa Skogström Feldt COVID-19 Response Alliance for Social Enterprises, we worked alongside Partners Head of IKEA Social Entrepreneurship like SAP and Unilever to learn together how to serve the needs of social enterprises hit community to the front-lines of Acumen’s the hardest by the crisis. work. This shift also made our content more This year we also expanded our up-and- accessible — now, Partners could participate coming donor community through Acumen from anywhere in the world rather than Next. Acumen Next is an opportunity being restricted by geography — allowing us for individuals to make a smaller, but to connect our Partners with a wider range meaningful donation to Acumen and join a of entrepreneurs and Fellows via Zoom. group of impact-minded peers to learn more For example, in March, we hosted our about impact investing and social enterprise. European Partner Gathering featuring talks *Partnership levels begin at $10,000. Please from Emiliano Mroue, founder & CEO of reach out to us at www.acumen.org/partners investee WARC Africa, who shared how for more information.

Acumen’s impact is ultimately about people. Identifying with, standing with, listening to and empowering people. This impact is delivered with dignity, respect, sincerity and generosity. And the effects impact everyone involved.

Steve Ross Acumen Partner &

Zlatko Batistich Zlatko Social Entrepreneur

29 ACUMEN’S Niko Canner, Incandescent Kerry J. Sulkowicz, Boswell Jesse Clarke, Distributed Group LLC BOARD OF Power Fund Vikki Tam, Bain & Company * DIRECTORS Beth Comstock, Author and Colonel Patrick E. Tierney, formerly GE Freeport-McMoRan Chairperson: Shaiza Rizavi, Rebecca Eastmond, Greenwood Krista Tippett, On Being Gilder, Gagnon, Howe & Co. Place Daniel R. Toole, formerly UNICEF Margo Alexander, formerly UBS Paul Fletcher, Teach For All Hamdi Ulukaya, Chobani Global Asset Management Katherine Fulton, formerly Naeem Zamindar, Zamindar C. Hunter Boll, Source Audio LLC Monitor Deloitte Consulting Capital Kathleen Chew Wai Lin, YTL Anand Giridharadas, Author *Advisor Emeritus Corporation Berhad and New York Times Columnist Stuart Davidson, Labrador Seth Godin, Best-Selling Author Ventures and Entrepreneur PARTNERS Julius Gaudio, D.E. Shaw & Co. Peter Goldmark, Independent Nate Laurell, New Frontier Consultant Acumen Stewards | $5,000,000+ Holdings Allen Grossman, Harvard Business The ELMA Foundation Cristina Ljungberg, The Case School* MetLife Foundation For Her Jon Haidt, New York University The Sapling Foundation Pat Mitchell, TEDWomen and Stern School of Business Pat Mitchell Media Per Heggenes, IKEA Foundation Leadership Partners | $1,000,000+ Kirsten Nevill-Manning, Katie Hill, Liquid Telecom Anonymous (2) People Operations Executive Arianna Huffington, Thrive Global Barclays Jacqueline Novogratz, Acumen Jill Iscol, IF Hummingbird Shawn & Brook Byers Karen Paterson, Moxie Foundation Foundation Kathleen Chew Wai Lin & Thulasiraj Ravilla, Aravind María Ángeles León López, Open Yeoh Seok Hong Eye Care Value Foundation Dalio Foundation Andrea Soros Colombel, Federica Marchionni, Secoo Group FMO Finance for Development Trace Foundation and Open Felipe Medina, Transforming Society Foundations Fourdoves Foundation Philanthropy Initiative Mark Tercek, Global Giving Wings Susan Meiselas, Magnum Photos Conservation Leader Government of Canada Catherine S. Muther, Three *As of March 2020 IKEA Foundation Guineas Fund* MECS led by Loughborough Craig Nevill-Manning, Sidewalk University and funded by UK aid Labs Moondance Foundation ADVISORY Sally Osberg, formerly Skoll COUNCIL Foundation* Moxie Foundation Noor Z. Pahlavi, Acumen Young Nayara Energy Chris Anderson, TED Benefactors Craig & Kirsten Nevill-Manning Jawad Aslam, Ansaar Management Jan Piercy, Enclude* Shaiza Rizavi & Jon Friedland Company Paul Polman, Imagine Robert Wood Johnson Foundation Syed Babar Ali, LUMS* Maria Popova, Brainpickings.org The Rockefeller Foundation Diana Barrett, The Fledgling Fund Kash Rangan, Harvard Business Mahvash & Jahangir Siddiqui Seth Berkley, GAVI Alliance* School Social Enterprise Initiative Foundation Tim Brown, IDEO Bryan Stevenson, Equal Justice Skoll Foundation Peter Cain, former Finance Initiative Andrea Soros Colombel & Executive Eric Colombel

30 Stone Steps Foundation Senior Partners | $100,000+ Porticus Malin Stroman & Sebastian Anonymous QBE Foundation Knutsson Ainslie Foundation Safera Foundation The Three Dogs Foundation Bill & Melinda Gates Foundation Tamar Capital UBS Optimus Foundation C. Hunter Boll Development Partners | $10,000+ UK Foreign, Commonwealth Capital One and Development Office (FCDO) Anonymous (6) The Case for Her USAID Abacus Wealth Partners, LLC Colhoun Family Foundation Philanthropic Fund Keystone Partners | $500,000+ The Edelman Family Foundation Argosy Foundation Anonymous Ford Foundation Asiff Hirji & Sarah Wigglesworth American Express Four Acre Trust Family Foundation Diana Barrett Fundación Santo Domingo David & Kyra Barry Invest Salone with funding The Gem Foundation Adam Bendell & Tracy Masington from UK aid Akhil Gupta Amrita Bhandari & PwC Charitable Foundation Hazon Holdings Amit Aggarwal Safaricom Imago Dei Fund Suzanne Biegel & Daniel Maskit Signify Foundation Peter & Seimie Kim Blue Yak Foundation Woodcock Foundation Moody’s Foundation Karen Brown Georgia & Rick Bullitt Sustaining Partners | $250,000+ Cristina Nestares Carmen Caneda & Anonymous The Robert & Kate Niehaus Foundation Richard Gilfillan The Amit J. and Vicky L. Patel Cristian Cardoner Foundation Verdele Polson Jennifer Cast and Liffy Franklin Autodesk Foundation Progress Charitable Foundation Ninan Chacko Bank of America Rumah Foundation James Chowdry Pamela Tanner Boll SAP The CO3 Fund Distributed Power Fund Sayuri Sharper, Kuo Sharper Foundation Katherine Collins Fundacion Bancolombia Daniel Szeto, 5B2F Limited Elizabeth Comstock The Hermine & David B. Heller Foundation Matthew & Anupama Tate Tom & Mary Cooper Murray Dalziel IKEA Associate Partners | $50,000+ Thomas Darden Johnson & Johnson Anonymous (3) Daniel Darling Nate Laurell & Kris McCoy Margo Alexander Andy Darrell Lucille Foundation A-Spark Patrick Duff MAVA Foundation Sunita & Ernst Baur David & Kay Aaker Prana Foundation Brinson Foundation Charitable Fund The Resnick Foundation Crabby Beach Foundation David Knapp Steven Ross & Shelley Scherer Rebecca Eastmond Roberta & Steve Denning MK Reichert Sternlicht Foundation Helena & Gustav Eriksson and The Barry and Mimi Sternlicht The Dennis and Pamela Mudd The Lawrence Foundation Foundation Charitable Foundation Mitsubishi Corporation United Nations Multi-Partner Shirin Sultan Dossa Foundation Trust Fund for Sustaining Peace Osprey Foundation the ella fund hosted by Swiss Sean Phelan & Audrey Mandela Philanthropy Foundation

31 EY Chris Ruder Affiliate Partners† First Dollar Foundation Mary Pat Ryan FES Bangladesh Sheryl & Minal Fofaria S & P Goodwill Fund Garfield Weston Foundation Fondazione Snam Madeleine Schachter Zahid Kamal Bert & Candace Forbes Darren Schluter The National Lottery Ann & Tom Friedman Select Equity Group Foundation Community Fund Joe Gebbia Kaustuv Sen Open Value Foundation GFP Real Estate Ricky Seung The Rank Foundation Godley Family Foundation Elizabeth A Sheehan Segelman Trust Hemraj Goyal Foundation Charitable Fund Randy & Jeanne Work The Hershey Corporation David and Dianne Shen Acumen honors its Partners based Hive Susan M. Sherrerd on the amount of pledges made or Steve Silberstein Holzer Family Foundation ongoing in 2020. The HOPE Charitable Foundation Craig & Jennifer Staub Dan Hu Margaret & David Stewart *Legacy Partners have included Jill & Ken Iscol Solidaridad Acumen in their estate planning with a gift estimated at $10,000 Anu and Naveen Jain Stiller Family Foundation or more. Marshall & Carlyle Jones The Sunken Meadow Fund †Affiliate Partners are donors Randy Kaufman Dan Toole & Beth Verhey who independently fund regional Visionary Women Krupa Family Foundation Acumen Academy entities. The Lampl Family Foundation Michelle Wilson Lucy Foundation Richard Wolfe Household Ann MacDougall & Jules Kaufman Jack Yeung Mark & Amy Tercek Foundation Janet Zobel

Robert McCarthy Jr. Fund Legacy Partners* Alli McCartney Warren & Susan Jason Neeraj Mehta & Jennifer L. Mehta Pro Bono Partners Arch & Shelly Meredith AlphaSights The Metta Giving Foundation Ashnil Hotels and Somak Safaris Taylor Milsal & Danny Hillis Bain & Company Stephen & Melissa Murdoch Cleary Gottlieb Steen & NextEnergy Foundation Hamilton LLP Sam Nolley & Maureen O’Brien Gibson, Dunn & Crutcher LLP Ocean & Land Limited McCann Worldgroup Michael & Sarah Peterson Nixon Peabody LLP Scott M. Pinkus NovoEd Guillaume Racine Orrick, Herrington & Sutcliffe LLP Wendy Reed Paul Hastings LLP The Ring Family Sharon Ruwart Fred Roses and Deidre Brown Salesforce.org Charitable Fund White & Case LLP Martine & Bina Rothblatt / United Therapeutics Corp

32 FINANCIAL OVERVIEW 2020

Preliminary, unaudited financial results. Figures will be updated Funding Sources when audited results are available.

Since Acumen’s inception in 2001, we have built and 8 evolved our business model, which spans innovative programmatic work and manages an extensive investment 8 portfolio of early-stage, mission-aligned enterprises. These investments are deployed across the capital spectrum, from grants to a range of debt and equity securities. These securities are booked as assets on our balance sheet (and therefore do not appear as a part of our program expenses on our financial statements).

Acumen’s approach to financial management and 6 8 governance is grounded in our commitment to accountability and transparency. We have established 8 sound internal controls and structures to effectively manage, deploy and report on the generous commitments 8 from our donors to ensure that we are delivering impact Individuals Government and outcomes in service of our mission. Foundations Corporations In 2020, we were able to pivot our financial resources towards our COVID-19 response work while maintaining Other

balance sheet stability and a healthy liquidity profile. Please 6 review Acumen’s Audited Financial Statements for details 50 of our financial performance in past years:acumen.org/ Programmatic Expenses financial-overview. The following are highlights from our preliminary, unaudited 2020 financial results: 8

Revenue* $32.0 M $34.9 M 2020 2019 50

Expenses* $31.4 M $28.8 M 2020 2019

*Includes $2.4 M in in-kind revenues and expenses. Portfolio Leadership‡ COVID-19-related grants and expenses to our Outreach, Impact Fundraising entrepreneurs and Fellows (fully funded) were the key & Communications drivers of our increased cost base in 2020. While our revenues decreased by 8 percent year-on-year, it is MG&A important to note that our 2019 revenue base included ‡Relaunched as Acumen Academy in 2020. our Acumen Academy expansion raise and funding from those revenues continue to cover activities in 2020.

Investments Under Management† Net Assets $79.1 M $143.2 M $143.1 M †Book value of IUM net of impairments. Start of Year End of Year

33 IMPORTANT INFORMATION

This report is provided for meaningful impact, and to present For Florida Residents: informational purposes only. The a sample of investments across principal focus of the pioneering our geographies and sectors. A COPY OF THE OFFICIAL investments made by Acumen The selected investments are REGISTRATION AND FINANCIAL was to achieve proof points on not representative of the overall INFORMATION MAY BE viability of innovative business investment performance of Acumen OBTAINED FROM THE DIVISION models that deliver essential and its affiliates and should not be OF CONSUMER SERVICES BY goods and services to the poor, construed as such. CALLING TOLL-FREE, WITHIN improving their livelihoods. THE STATE, 1-800-435-7352 Acumen’s pioneer investments Unless otherwise indicated, all (800-HELP-FLA), OR VISITING have always been “impact-first,” performance results herein are WWW.800HELPFLA.COM. with the objective of testing out being presented on a gross basis REGISTRATION DOES NOT IMPLY unproven business models while and do not reflect any deduction ENDORSEMENT, APPROVAL, OR aiming for capital preservation at of fees or expenses (and would be RECOMMENDATION BY THE the portfolio level. The funding for lower if they did). References herein STATE. FLORIDA REGISTRATION pioneer investments comes from are to gross returns (returns on #CH43260. philanthropy with donors aligned invested capital, before fees and on the high degree of financial direct expenses), on a cash basis. For New York Residents: risks and deeply interested in the Impact metrics referenced herein learning and impact outcomes have been prepared using Lean Acumen Fund, Inc. is a from these investments. The DataSM customer surveys and learning from these pioneer analysis, as well as product or not for profit corporation investments have allowed service sales data provided by our formed under the laws Acumen to subsequently set up portfolio companies. Cumulative of the State of New York for-profit funds in sectors and lives impacted is calculated regions where the ecosystem has annually for each company, from and a public charity under evolved to a degree allowing for a the point of Acumen’s investment Section 501(c)3 of the for-profit fund to operate and push through to exit. The impact of a Internal Revenue these companies to scale. However, product or service is calculated this report does not constitute an at a household level, as the use Code, with offices at offer to sell or a solicitation of an or purchase of a product or 40 Worth Street, Suite offer to purchase any security of any service may impact more than 303, New York, NY fund or any other investment vehicle one individual, and an impact or product sponsored or managed multiplier is applied based on the 10013. Donations will by Acumen. No part of this report sector and region of the company. be used to support our constitutes investment, legal, tax, programs to change regulatory, accounting, or other Certain information contained advice of any kind. herein has been obtained from the way the world tackles published and unpublished poverty. Our most recent The performance information sources prepared by others, financial statements contained herein is intended to which in certain cases have not demonstrate the overall scope and been updated through the date are accessible on our experience of Acumen, and the hereof. While such information website at acumen.org investments are not necessarily is believed to be reliable for the or upon request. representative of the types of purpose used herein, none of investments expected to be made Acumen or its affiliates or any by Acumen. The financial and providers of such information impact performance information assumes any responsibility for the contained herein was selected accuracy of such information, and to illustrate investments that such information has not been Acumen deems successful in independently verified by Acumen recycling capital for our mission- or any of its affiliates. based work while achieving

34 It starts by standing with the poor, listening to voices unheard, and recognizing potential where others see despair.

It demands investing as a means, not an end, daring to go where markets have failed and aid has fallen short. It makes capital work for us, not control us.

It thrives on moral imagination: the humility to see the world as it is, and the audacity to imagine the world as it could be. It’s having the ambition to learn at the edge, the wisdom to admit failure, and the courage to start again.

It requires patience and kindness, MANIFESTO resilience and grit: a hard-edged hope. It’s leadership that rejects complacency, breaks through bureaucracy, and challenges ACUMEN.ORG corruption. Doing what’s right,

@ACUMENFUND not what’s easy.

@ACUMEN Acumen: it’s the radical idea of @ACUMENORG creating hope in a cynical world. Changing the way the world tackles poverty and building a world based on dignity.