As expected, SoCap 2011 has been a whirlwind of activity. This year, there is a different vibe in the air, as many other participants from previous years have observed. Maybe it is the focus on entrepreneurs and the range of opportunities that were showcased at the conference. Or perhaps the number of new faces who were speaking at the various panel sessions. Or perhaps even the emphasis on "meaning" as a theme than was visible in the panels and sessions. Here's a quick summary of my highlights from the first two days of SoCap:

An Increased Focus on Entrepreneurs:  As I've already written about, I was looking forward to gaining a better understanding of the issues and opportunities on the demand side of impact investing i.e. the entrepreneurs and their considerations. As discussed in my earlier post on SoCap, this was visible at multiple levels, and I believe it brought a depth to the conference that was valued in multiple ways - not least of which is just making all of the discussions around money very real, very tangible, and very connected to solving real life, social issues. There were several sessions that featured entrepreneur pitches, and my guess is that SoCap11 will have been a milestone for many entrepreneurs - as they find their first (or most important) investor, experienced mentor, collaborator, or team member.

Financing Early Stage Entrepreneurs:  Given all the attention on entrepreneurs, and a well-identified gap for seed funding, there were several sessions that directly or indirectly sought to provide advice, examples, and sources of early-stage finance. Village Capital's model is proving to be successful in India and the US, and expanding to other regions around the globe. The session on "what institutional investors want every social entrepreneur to know" allowed some established and new fund managers to share their expectations and advice with a crowded room full of budding entrepreneurs. Incubators such as the Unreasonable Institute, and shared space environments such as The Hub, are making connections to intermediaries and investors that have a high risk tolerance, by pairing up flexible finance with capacity building and related supports.

Revisiting Modern Portfolio Theory:  RSF Social Finance, a San Francisco-based pioneer in community development investing (and 100% proudly impact-invested) hosted a session to discuss their newly-released paper that challenges the core tenets of modern portfolio theory (MPT). In their paper, they provide an assessment of how the core tenets of MPT (risk, growth, utility) are limiting, and make a compelling argument for a re-assessment of these concepts (into integrated risk, selective growth, and multi-dimensional utility, respectively) that can generate blended value returns in a complex world.

The Age of Execution: Jed Emerson and Antony Bugg-Levine, two pioneers in the impact investing arena, launched a new book that is the seminal guide to impact investing. As well as tracing the evolution of the field, they have outlined several key themes that are required for impact investing to achieve its potential (openness, humility, discernment, patience, discipline, and spirit). The blueprint for impact investing was unveiled at the first SoCap conference, and while subsequent discussions each year have refined this vision, the authors remarked that we are in the “age of execution” where action must take prevalence over rhetoric.

The pioneers in the field who spoke at the conference have repeatedly put out a call to action at the panel and plenary discussions, and the entrepreneurs in the room are certainly not waiting around idly. Investors are beginning to show signs of movement as we get more risk-tolerant and patient capital available, but there remain very real barriers around access to finance (as one panelist remarked, every investor wants to be the first second investor in). Trailblazers, and pioneers like RSF Social Finance, the KL Felicitas Foundation, and several family foundations that are 100 % impact-invested are challenging others to follow their lead.

There is much to look forward to as SoCap11 wraps up. There is still a lot more to talk about around money, and even more around meaning. I believe that there is a noticeable bias towards action this year, but only time will tell if we have used this opportunity to think bigger, act faster, invest smarter, grow better, and demand more, from each of the actors involved in the ongoing evolution of the social capital market.

Photo credit: http://www.flickr.com/photos/jdlasica/6126525116/in/set-72157627621538074

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