Today the Impact Engine 3 accelerator program will launch eight mission-focused businesses onto a 16-week path of development and growth. The program has earned national acclaim and it’s companies have created impact everywhere from right here in Chicago to unheard of communities in the developing countries.
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Leading this cohort through the emerging social enterprise space is Jessica Droste Yagan. Prior to stepping in as CEO, Yagan directed the sustainable supply and sourcing strategies for McDonalds, co-authored two Harvard University case studies about public-private partnerships and has spent over 12-years leveraging the power of markets to create positive impact.
Built In spoke with Yagan about what’s new to the program, her transition from corporate to startup and the power in impact investing.
Talk about Impact Engine - what drove you to take the position as Chief Executive Officer?
I've been an active supporter of Impact Engine since the beginning. I love what Impact Engine is doing to support and scale impact entrepreneurs and investing - proving financial return and social return can and should go hand in hand. I'm really excited to help build on what the team has created.
You received many accolades through your work as the Director of Sustainability Supply at McDonalds -- what lessons are you bringing from that role to Impact Engine?
The main thing I'm bringing is the core belief that sustainable financial returns go hand in hand with strong social and environmental outcomes. Specifically in my role at McDonald's, that was related to ability to source food and packaging well into the future, and recognizing the challenges related to environment and social issue that might threaten that ability. McDonald's has been around many decades and wants to be around many decades more. I also learned a lot growing and building a community of support around sustainability and change management.
Talk about the transition from corporate life to startup life - what's most exciting? What are the challenges?
Certainly the smaller scale allows for a lot more flexibility and faster development of ideas. On the flip side, it's harder to build a brand and a program of scale with limited resources and starting from the beginning. I did have some experience in the nonprofit and public policy world prior to the corporate world, and I've experienced life as an entrepreneur for the past 20 years with my husband, so I wasn't really surprised.
You've said in the past that you strongly believe having a positive impact and earning sustainable profits go hand-in-hand. With $12M in Series A Funding (among other great accomplishments) the past two Impact Engine cohorts have really proven the power of this business mindset. What have you learned from the past two Impact Engine groups and how will you use that knowledge to push the social enterprise space forward?
The Impact Engine team and Board have built a fantastic program to grow from. Each year we have been able to understand better what is effective support for our companies and how we can improve. At the same time the support of the community has grown. We will continue to learn and improve the ways we support impact entrepreneurs and investors.
When it comes to attracting investment or resources, what advice do you have for companies serving a triple bottom line?
First of all, you need to be able to clearly articulate how your business model will generate both financial and social returns, and how you will measure that, and how you will scale. Second, be creative in how you find resources. Of course, look to the traditional investors, but also with your impact model, think about unique alternatives at the earlier stages of growth, such as foundation grants or social impact competition prizes.
How will Impact Engine evolve under your leadership?
We have some exciting improvements for the 3rd class of Impact Engine including the addition of super mentors. Super Mentors will be assigned to each company and will be their champion to help them through the growth and fundraising process - a consistent, experienced partner. We have also added a new position - Chief Investment Officer - to improve our ability to find and serve impact investors and link them with the companies in our program. Tasha Seitz is in that role and brings a wealth of experience as well as passion to the fundraising side of our program.
What do you do for fun in Chicago?
I have 3 little kids (6, 3, and 4 months) so I don't get out as much as I used to. :) When I do, I am a fan of Milk & Honey, Enso Sushi, and Big Star in Wicker Park/Bucktown. I enjoy Pilates regularly at Frog Temple, and our kids love all the neighborhood parks as well as Little Beans Cafe and McDonald's Happy Meals. As a family, we love to participate in the Honeycomb Project events (family community service) and host friends and family at our house.
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