“Using my business skills every day to create high-impact social change is great.” – how good business education helps to do good and why Heidi Krauel prefers small business deals.

Heidi Krauel, Associate Director, Business Services, Pacific Community Ventures, San Francisco, California, USA

“I really liked the work at Credit Suisse First Boston and AOL Time Warner Ventures. However, here at Pacific Community Ventures I feel a deep feeling of satisfaction for the first time,” - Heidi comments when we talk about the difference between working in the hard-notched business of classical investment banking and venture capital compared to working in community economic development
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Our work creates double bottom line returns for our investors, meaning both financial return and social return (measured primarily in terms of the number and quality of jobs provided to low-income individuals). As Heidi told us, experiencing the positive life changing consequences for people employed by successful small businesses operating in low-income communities is a priceless reward. That’s why she never regretted leaving the world of big business; in contrast, she is extremely happy to have chosen to use her skills and experience to support business growth and development in economically disadvantaged communities.

Enjoy Heidi’s selected thoughts and statements of our discussion in the following lines. You may be able to read more about her diverse projects in our book “MyImpact”.

Heidi Krauel’s selected quotations:
“Both my parents were socially very active. In a way I always knew that I would come back to the social sector one day.”

“When I was at Stanford Business School I took the chance to talk to lots of people and have a look at different models of creating social change.

"Using private dollars to create social change is something I believe in very strongly and I am very passionate about. Business still has a huge untapped potential to create social change.”

“I love entrepreneurs and I am thankful to be in a position where I can provide them with resources that they need to grow.”

“I could not imagine a better job for me. Using my business skills every day to create high-impact social change is great.”

Some background on Heidi Krauel:
Heidi Krauel is Pacific Community Venture's (PCV) Associate Director of Business Services. She is responsible for forming and supporting business advising relationships in the Bay Area, as well as for formalizing new community partnerships with small business development organizations. Heidi is also responsible for conducting capacity building workshops and forums for portfolio company managers as well as for working closely with the Director of State-wide Business Advising to support program implementation and evaluation efforts across PCV's different regions.

Prior to joining PCV, Heidi worked in the private sector for AOL Time Warner Ventures, making strategic equity investments in early-stage technology companies, and for Credit Suisse First Boston, supporting the investment banking needs of global media and telecommunications companies. Heidi holds an AB in Political Economy from Princeton University and an MBA with a Certificate in Non-Profit Management from the Stanford Graduate School of Business.

Some background on Pacific Community Ventures:
Pacific Community Ventures (PCV) provides resources and capital to businesses that have the potential to bring significant economic gains to low-income communities. The organisation opened its doors in 1999 and helps companies in traditionally overlooked areas to gain access to capital, business advice, and critical business resources that will accelerate company growth. Currently, PCV targets existing businesses throughout California, but has a particular focus on the Bay Area and Los Angeles.
By connecting its portfolio companies with the people and resources of the region's vibrant business network, PCV aims to create a vital new network that transcends barriers and reaches across. As a non-profit organization it manages two for-profit investment funds and offers entrepreneurs access to valuable business development resources through various programs and services.
Through its cornerstone service, the Business Advisory Program, PCV utilizes the vast experience and enthusiasm of experienced professionals looking for meaningful, effective ways to contribute their own skills and resources to develop enterprises and strengthen low-income communities in California. Advisors are matched with portfolio companies to provide business advice and guidance on issues related to the company's growth and development. Other services available to entrepreneurs in PCV's advised and financed portfolios include: Business Roundtables, CEO leadership forums, job placement partnerships and legal assistance.

In addition to supporting eligible businesses through its services, PCV currently manages PCV Investment Partners I and II, Limited Liability Corporations, from which it makes equity investments in select businesses. The purpose of these investment funds is to attract and channel institutional investment money into private companies that provide good jobs with marketable skills, benefits, wealth creation vehicles (e.g. stock option and profit sharing plans) and job training in low income communities.

In all of its investments, PCV seeks double bottom line returns, meaning both financial return (measured in terms of IRR) and social return (measured primarily in terms of the number and quality and jobs provided to low-income individuals).

If you would like to engage with the work of Heidi Krauel or get to know more about Pacific Community Ventures please visit www.pacificcommunityventures.org,
or, for more specific opportunities, contact joanna.stefanska@myimpact.ch or wolfgang.hafenmayer@myimpact.ch directly.