Socially responsible investing, which aims to maximize both financial return and social good, often gets a bad rap. There’s a perception that returns in the sector fall victim to social goals, or vice versa.
Josh Cohen believes his firm, City Light Capital, has the right formula to avoid this trade-off. Since 2004, the New York-based firm has amassed a diverse portfolio of 13 companies, including ShotSpotter Inc., a gunshot-location system developer; Rotomotion LLC, which makes unmanned helicopter robots; and 2tor Inc., an online education company.
The firm has had two exits to date: Arxceo Corp., which was acquired by Japan Communications Inc. in 2006 in a deal worth up to $15 million, and AgCert International Ltd., which went public in 2005.
In an interview with VentureWire, Cohen, a managing partner, discussed how City Light aims to generate strong returns while making a social impact, and why this area of investing may be destined for an “attention” bubble. Here’s an edited excerpt from that interview:
Venture Investing, The Socially Responsible Way - Venture Capital Dispatch - WSJ.