VC firm banks on the poor: CNET News Video
CNET News Video: VC firm banks on the poor1:34 /
Venture capitalist companies are notorious for trying to make big profits by investing in startups. But Sumi Das talks to the founder of one firm that's looking for a different return on investment: social good.
Sixteenth when a venture capital firm fund the startup they're banking on a sizable return on the investment but sometimes it's not just about turning a profit. VC firms like frontier investments -- of our equity and core innovations look for other measures of our ally. There's this new sector coming out we're reinvesting companies that try to solve some social problem as well as make money. So that's what impact investing is when area of focus for impact investing the under banked. Individuals who had adequate access to financial services. He walked on the streets one and four wallets. It doesn't have a bank account or does but barely uses that and mostly relies on alternative financial services protect -- -- -- -- reminders. VC firm core animation capital wants to help create options that are more affordable for customers. And less risky for service providers. So if I can manage -- risk better by using some risk algorithm and the cloud vs a guy in the back room to decide if the check is good or bad. I can bring matter risk levels found to basis points is supposed to percentage points that can pass those savings on to the customer and get a better -- myself. -- investments include plastic which offers overdraft -- looking. As America tries to recover from a harsh financial crisis the under -- may be eager for a dose of high tech help. In San Francisco -- -- dot cnet.com for CBS news.