And my mom open and just my mom open and just like you got 10,000 check from a Tobacco Company and is a scholarship for Community Service for Community Server site done in high school on at the time i wanted to havent it to venture familys home and i was restless. Spinning the Community Service he could take and go to africa. Was for content high school and it was for a scholarship and they said would be far more educational to graduate early and go off to this program in ghana and i would like to say this was a motivation that it was really motivated by the desire to have an adventure. I showed up in ghana thinking it would help these poor african children learn english and my students to listen to voice of america and bbc radio and spoke with the queen of english, could name u. S. Senators, they were more knowledgeable about Global Affairs like most of my High School Class yet they were all from 2 a day render families and is a school for blind kids. Hard enough getting an education in west africa. Imagine doing that when you additionally have this disability. What struck me most as i had grown up thinking a brother and i were really beneficiaries of the american dream. We both went to really create schools probably both had scholarships, lots of odd jobs to make ends meet, and if you have the will of the skoda work could make it. And it never dawned on me what life is like for the vast majority of extremely talented people who happen to be born living in squalor. He really means a life in my mind of a lot of avoidable suffering that should not have been in 2017. We have all the means in the world to fix this problem is a matter of distribution. You say that clearly and i think thats right. I matter distribution in controlling or affecting distribution of resources and jobs. I completely agree. He told a human story about joe. Before rico one, for this audience, talk about a couple lives you have affected in africa. What is happening to these workers have you found them into their families. I assume you are tracking whether benefits are sustainable meaning they continue over time. Go start at the macro level with the data. I worked at the world bank in the historic in the Development Research group that probably two people read. Every day. I confess i read it. Uturn on the state in one of the things i learned early on as if you want a credible approach to fighting poverty units of Credible Data around it and the more object to the better. We are lucky enough to have all these incredible resources. Mohammed younis who came out with the book as well, the pioneer of microfinance for extensively with the world think to come out with a poverty index. Its hard to manage poverty levels or they dont have cash economy. You have to measure assets in the hospital whether someone has a roof, what kind of roof it is, what floor they might have to ascertain what poverty level. We actually do baseline surveys of all for workers to understand what income level they have. We do sixmonth surveys and then we look at what happened to them long after they leave us. Remarkably received a move on average from 2. 20 a day to 8 a day stay at the higher income level two years after they leave the program. Not just for the workers but all the income dependent supporting family members then we track what they spend their money on paper he published the data in case you are curious. We even to quarterly, sort of like the equivalent of Quarterly Investor calls. Quarterly learning calls very tough for numbers and try to help people make sense of them. Lastly, importantly in this space theres a new trend or on impact in randomized controlled trials. Really measuring the efficacy of a new drug by a controlled experiment im only now do that with Poverty Reduction program. Her subject in people which may or may not work and its important to be responsible and ensure your Program Works before the grant funds and we just embarked on an rct and in her first thirdparty impact on it which the results are published this year and we did really well. Thats fantastic paid these randomized efforts to really look at the business, take some time because you compare your intervention within nonintervention and see the extent to which it affects things. Go ahead. Is going to share his story. I did the political thing where he didnt answer a question. The macro stuff really is great. But i couple human stories. So, share this story a lot because its just kind of stranger than fiction. I met this young man named ken kiara from a road be an one of those places that looks like a postapocalyptic movie spending. How many of you have seen the movie of the cm. The movie about what happens in 500 years from now the earth has devolved into a massive slump in the rich people have moved from a space island. Another subject. The saddest thing about the movie incidentally is both of this month seen in the rich people scenes were filmed in modernday mexico city. Think about that. The story looks like a scene out of one of these movies. It is a place where you see open sewers and beautiful Young Children playing outside open sewers. People are kind of multidrugresistant tuberculosis. People are dying of cholera outbreaks. A setting that shouldnt belong in the modern world. There are between 809 Million People living in one of them is to beat this guy, ken kiara. I met him outside his home just after he started working and introduced me to his home. An open sewer right outside. His beautiful sewer. He was living in one tiny room in which he tried to cook. He would bring kerosene to cook, which was a major problem that causes asthma and all sorts of other problems. Regularly his. Regularly his home would be broken into and belongings would be stolen. He showed me the bathroom he went to told me he was afraid to go at night because he could get mugged or attacked. It is very dangerous. And then he told me the most crazy thing. He was doing a business suit here in san francisco. Youd never guess his background. He speaks beautiful english, very charismatic, shut showed up early for his meeting, professional presence. Youd never guess he came from his background. It turned out he got admitted to one of the best schools on a full scholarship at nine graduated from high school. By the way, before you select did he had been working. He had been an orphan. His mother in seven of her nine siblings had died of multidrugresistant tuberculosis. He could not make it out. Heres this guy who is against every odd the universe could turn against you to graduate from one of the best schools. Using great now is going to get a job and change the trajectory of his family except in a robe either 70 youth unemployment. No job, especially not for a kid from islam. So he finishes his high school and goes back to the phone after weve made this Huge Investment in education. So often we think its the answer but if theres no jobs after the education, then whats the point . Its almost in some ways worse. So he moves back to the slums. The only job he could get was telling this local moonshine called china. He actually took me to where they brew it in a space guys. I met another guy who had a degree in i. T. From a western Kenyan University was forced to to live in the fund because theres no jobs. Heres these talented young people with so much to offer, literally dredging up sewer water to brew this graphic moonshine. They mix it with kerosene. People in this fun trinket to forget themselves. Its like sniffing glue. Meanwhile, our typical idea of someone selling this kind of stuff is theres no way they could have a real job. We never would imagine someone telling moonshine by the side of the road in the middle of nairobi as someone capable of doing work for google. And yet thats exactly what happened. Can get into one of our programs come a Computer Training Program in islam, quickly does the common get tired to do data entry. Finally, i will fast forward. Lester in december and went to beirut because we have launched a Trading Program with the World Food Program and ken had taken its first flight out of the country to be the leader of this project. So now ken has trained over 500 people in digital work skills all the way to lebanon. He didnt like the food though he told me. Then he moved out of the slime. He has his daughter at an amazing school. He literally looks like a different person. That is what is possible when we could work. When you give work, find a way to take the talent and give work in using all of the Wonderful Technology and wonderful employers that you can use technology to link to. We are going to run out of time and i want to get to a couple of other areas. I think we would all really benefit from understanding a bit more about your own business model. Its a nonprofit doing lots of things. You just talked about opening a new training in beirut. You are doing rct have impact assessment. So you have a budget. How do you finance the operation and why is it a nonprofit . You couldve made it a b. Corp. , a forprofit. So tell me about the Financial Model and then related to that, sustainability. Do you think it in a court you worry about the Financial Model going forward. You need to tweet it in some way . I will start by saying we have a problem in the u. S. , which is a think we are still very uninvolved when it comes to Business Models that on the one hand profit maximizing corporations the other hand charities that i think about make all the money we can doing whatever we need to do including polluting the stream and employing these Big Companies still do and maybe well donate money at the end of the day over here to this Charity Model where you have these nonprofits which are really illequipped to handle these big problems and not the traditional idea we have of business and charity. All of the most interesting social and Environmental Impact work is happening in the middle in this new space of social business. A lot of earning revenue nonprofits that do not base. Nonprofits that are getting the stream of revenue from Business Operations that support the mission. We had delancey street here in the city. Homeboy industries in los angeles, oldschool cafe. Is that which you are . An earned revenue going back into sustaining and building this operation. We actually separate the pa now that each program so donors know they are not subsidizing a contract for microsoft or google the donor revenue is going towards training and supporting clear social mission object is theater business is now profitable off of our earned revenue. All of the operations of the business are entirely covered by the revenue we aired from contracts and we hit the milestone last year after acres of operations. [applause] thank you. Silliness blend of taking some grant money, and maybe some philanthropic money from donors in earning revenue, what is the sort of breakdown . Yeah, we have about a 60 million budget in the majority of that is in our Source ProgramCompany Earned revenue business thats under a million right now and i hope that grows. We are now trained to work a city government. Said they would sign on a basically support the training. Or buy a license. We actually thinking about different Business Models. We took our first equity. Read on a subsidiary. Our work center is in the country we operate in. For example in kenya the work center is a forprofit business we basically holy god as a nonprofit and we just sold to macromedia that business to a european Impact Investor come a foundation to impact investment. So theres all these hybrid models than what is exciting as it used to be the foundation, the people doing the finances for the foundation were entirely divorced from the mission people. You have foundations investing in tobacco companies. All these things creating the problems that the nonprofit site of the foundation is trying to solve. That makes no sense. What we need to see his convergence. The investments they make are in businesses that can only avoid doing bad, but proactively do good. Have a great example of this. I got the phone yesterday with conservation international, one of the leading organizations that investing in companies that build sustainable Business Models protecting assets. For example, Companies Like luna i. T. Companies thirsting from the amazon in ecuador are very gradient around these models to show local people they can make more money preserving the tree that creates a potentially profitable ingredient than cutting it down in selling the land to a cattle farmer. Let me ask questions a little bit about your other company. The other company you founded as a forprofit. Why did you choose that model and are there any links between them . Are they totally separate entrepreneurial . Have a bit of a sickness for starting things so when i had the agi went to my board and our sake okay, youre going to think this is crazy but i have this new idea and i had come across this amazing ingredient in northern uganda. Thats what triggered my ingredient. You have a real asset that you can protect and monetize. I love going to local markets in local markets when i travel in finding out what local were using and i came across this ingredient called nylon, shea butter in other people in northern uganda have Beautiful Skin and they have that because they used this product that i wanted to get my hands on some and get my hands on some and i go intended and they find out that this not only grows wild countries that take 20 years to mature and those trees only grow in northern uganda comes northern uganda, south sudan in parts of ethiopia. How come no one has marketed this as a luxury item before. I go back and remember flying through duty free in looking at the highend chanel skin creams and i love one of the women in my life early on told me even if youre really broke always the best in your. You only have one face. By the expensive skin cream. You go through and its got everything. And usually one is looking pretty wretched because you just get off. So youre like an easy target. Sunlight coming up this flight from uganda for my flight to amsterdam and im looking at the skin cream wondering if i should buy it and they look at the ingredient label and its things like a red number five, yellow number seven, tabatha crum, horrifically toxic ingredients in a figure researcher relates many of these things are known carcinogens allowed in 200 an ounce skin cream. We are cream. Were cream. We are showing utter money which by the way is not going to womenowned enterprises. Its literally going to the man. For products that dont even come in not only do they not do good things for us, they dont do anything for the world. I thought maybe this is an interesting opportunity. What if we could build a model in the luxury space. A luxury typically have enormous gross margins. Often winning during the purchasing been very few of these products benefit women in the supply chain or its owners and help him endure the spending. Why not come back and after a word about it. They were fine, do it, just raise extra money. Not here, do it on the site. I donated a third of my personal shares to the nonprofit. We also set it up we are going to compete corporation registration process. The idea is that the time i started it i was pretty agnostic. I just wanted to build a Company Whose primary mission be to to move people out of poverty. The way he structured it was kind of incidental at the time be corpse or just get informed. And so, i think now this is the most rich and exciting space in between what Mohammed Younis called social business. Von moss and nondividend companies. He argues when you are freed from the prophet motive of your investors, but at the same time constrained from having to be sustainable getting the revenue way to continue. Does her powerful innovation can continue. Imagine if we had such we had such a we had social and praise prisons and that is horrific forprofit prisons. Imagine if we grant so many i think its easy to criticize government run programs. Often bureaucratic and inefficient, but at the same time, dont have the pressure to deliver profits which can be at odds. The governments can procure companies. Some of these things may end up being a Government Mission. It may be a Government Mission to have some reTraining Programs to get workers skilled. Thats a Public Mission and there may be some public dollars. But they cant do they necessarily do a file, so that is why they then turn to a school to try to help them. Combining procurement for Public Policy dollars but these institutions is very powerful. We are going to open it up to questions in five minutes. I have tons of questions to still ask. I am going to and what we talked about the process of women. It is the case there are stories from a horrifying stories about what is happening to women in the tech community. Now, they are first World Problems and i know one of your comments and i agree with ed we have to worry about thinking about feminism as a first world issue coming global issue in some of the problems come in many fair women are much more extreme when you also combine heavy, heavy disadvantage. The point is in your own personal story where you have really good links with the tech community, youre an entrepreneur, the same projects from comp means like google, had there been any special challenges associated with things hes had to deal with . Are their role models have helped you . Are their mentors to help