Halcyon, a non-profit incubator for early-stage start-ups, stands as a lighthouse of innovation. It is a unique and impactful organization dedicated to fostering the growth and development of impact-driven businesses. Halcyon accelerates the future of business by focusing on ventures that integrate a social mission into their core that also represent a significant opportunity to promote equity and inclusivity in the workplace and society.
Halcyon was founded by visionary entrepreneurs Dr. Sachiko Kuno and Kate Goodall. Dr. Kuno, known for her success in biotech, acquired the historic Georgetown property in 2011, aiming to inspire entrepreneurs. They envisioned a sanctuary for globally impactful entrepreneurs. Their extensive research and planning led to Halcyon’s establishment in 2014, focusing on profit and purpose. In 2017, it became an independent nonprofit, symbolizing its commitment to nurturing impact-driven businesses.
A New Business Ethos: Impact at the Core
Dan Barker, the President and CEO of Halcyon, articulates their ethos: “We hold the belief that embedding social and environmental impacts at the heart of a business operation presents a distinct competitive advantage.” Halcyon focuses on three key verticals: Health, Climate, and EquityTech. This philosophy was once challenging to convey but is now increasingly embraced globally. It is central to Halcyon’s approach to supporting businesses, and it emphasizes its strategy of investing in founders at very early stages, acknowledging that as these businesses grow, they contribute positively to wider communities.
Dan and his team believe that the future of capitalism lies in companies that are committed to doing good in the world. Halcyon’s application process is rigorous, drawing in hundreds of applicants in each cycle, from which the most impactful ventures are chosen. These entrepreneurs are selected based on their potential to develop lasting and sustainable impact.
“We have the unique opportunity to work with companies right from their inception, focusing on social and environmental impact. Unlike other ventures, they don’t need to retrofit these values into their existing models; it’s already at the heart of their business, along with the drive to be profitable and scalable,” Dan explains. Halcyon’s role is to provide these founders with the necessary resources, whether it’s financial investment, mentorship, or connections to vital services like pro bono legal advice or consulting. It aims to ensure these founders have everything they need for their businesses to flourish. This support extends beyond mere business development; it includes personal support and guidance, acknowledging the profoundly personal nature of these entrepreneurial endeavors.
“What sets us apart is our focus on the founders themselves,” Dan elucidates. “Beyond just business needs, we concentrate on their development as leaders committed to their mission. This involves connecting them with leadership coaches and resources to help build a strong organizational culture.”
Halcyon’s approach has proven effective, as seen in the successes of ventures like Phil’s Finest and Solstice. These companies not only pivoted their business models to meet market needs better but also created products and services that are environmentally conscious and socially beneficial.
Through its innovative model and support system, Halcyon demonstrates the viability and potential of impact-driven businesses, proving that integrating social and environmental considerations into the business model is not only possible but also a path to success in the modern business world.
Halcyon’s impact is not just significant; it’s transformative. Picture this: over 500 fellows nurtured, 360 groundbreaking ventures supported, and an astonishing 9.2 million lives positively affected by these ventures. This is about more than numbers; it’s about real-world change. These ventures have generated over 6,000 jobs and amassed an impressive $500 million in funding.
“What sets us apart is our focus on the founders themselves.”
Cultivating Leaders for a Better World
Dan also emphasizes the importance of supporting underserved entrepreneurs, particularly women and people of color. He argues that these individuals, often closest to the challenges, are likely to devise the most effective solutions. Countering the narrative of a ‘pipeline problem’ in the entrepreneurial ecosystem, he asserts, “There are plenty of incredible women starting businesses. There’s plenty of incredible people of color running these businesses.” He calls for a shift in the venture capital and broader funding community to recognize and invest in these founders, not out of charity, but for the innovative solutions they bring to the table.
Diversity is at the core of its success, with 75% of these ventures led by women or non-binary individuals and 78% by founders of color. Take Wasoko, for example. This venture, led by software developer Daniel Yu, is redefining access to goods and services in Africa. Through
a mobile ordering and delivery service, Wasoko empowers small retailers, enhancing convenience and cost-effectiveness in product accessibility. Their remarkable achievement? An annual revenue of $48 million and a groundbreaking $125 million in Series B funding, setting a new record for non-fintech startups in Africa.
This is the power of purpose-driven business: making substantial impacts, creating opportunities, and redefining industries, one venture at a time.
Driving Innovation with Imagination
Innovation at Halcyon goes beyond tech and buzzwords. The Halcyon Fund is a pioneering venture capital initiative with a focus on impact-driven startups. Starting with an initial $5 million, the fund reflects Halcyon’s proactive approach to addressing market gaps, especially for the founders it supports.
Emphasizing the need for action in capital allocation, Dan urges: “We need capital allocators to change their behavior.” This statement highlights Halcyon’s commitment to not just supporting but actively shaping a new era of impact-driven entrepreneurship.
What are examples of this mindset shift required? Halcyon has innovatively established an angels network, attracting investors who are keen on impact-driven ventures. In addition, they have developed a microloan fund designed to offer flexible financial support up to $25,000. This fund is unique in that it requires neither credit nor collateral checks, providing very favorable terms for the founders. By the time these entrepreneurs are eligible for this fund, Halcyon has already mitigated much of the risk through its comprehensive program.
The Future: Scaling Global Impact
As Halcyon House nears its tenth anniversary, it looks towards an ambitious future, aiming to deepen and expand the organization’s transformative work on a global scale.
This expansion is set to include more intensive engagement in Halcyon’s key focus areas, notably in sectors where they have already made significant strides: Health, Climate, and EquityTech. By leveraging their experience and successes, Halcyon plans to replicate and adapt their model to suit different global contexts. Dan sees this as an opportunity to catalyze a global movement of impact-driven entrepreneurship, where businesses are not just profitable but inherently designed to address the most pressing challenges of our times.
Integral to this vision is the fostering of a global community of innovators, entrepreneurs, and investors who share Halcyon’s commitment to impactful business. Dan imagines a network that spans continents, where ideas, resources, and best practices are exchanged fluidly, creating a rich ecosystem that supports sustainable and scalable solutions to global issues.
Halcyon is a testament to the transformative power of businesses that align profit with purpose, driving positive change in society and the environment.
