10 Questions With Chid Liberty

Today, we will be learning from Chid Liberty. He was recognized by President Ellen Johnson Sirleaf for his leadership in trade and entrepreneurship. He is also a Salzburg Global Fellow and was named one of 50 African Trailblazers under 50. He is currently a managing partner at Liberty Friedman where he drives impact-focused investments, and advises leading global organizations. In this rapid-fire interview edition, he shares how he got involved with impact investing and key lessons for everyone interested in this space. 

How did you get into impact investing? How long have you been involved, and why have you chosen to stay in it?

I got into impact investing as a social entrepreneur. My first impact investing experiences were all on the receiving end - marketing impact investments in my business to funds, foundations, and family offices. Since then, I’ve had the rare opportunity to be on both sides of the table as both an investor and an entrepreneur. Positive impact is just in my DNA, so as long as I’m in business, I’ll be in impact.

Many founders from the Global South desire patient capital to take their work to the next level. In your personal opinion, what are key markers that make an impact-oriented business more investible compared to others?

I actually believe this is why everyone should also start investing in start-ups and small businesses. Even if you’re a Global South founder and it’s putting $500 into a local market woman, I advise everyone to do it. It just helps to create empathy for what investor needs are. So that when you are pitching your own opportunities, you’re coming with your own perspective. I have been in this business a long time and I don’t know anyone who likes losing money, no matter how benevolent they are. So while patient capital is absolutely critical, I really recommend that every founder puts a little of their own capital into similar opportunities just so they can experience what our impact investors are going through. 

What are some top mistakes or missteps you've seen founders make?

The main misstep I see founders make is not being obsessed with the customer. When you are solving a real customer problem better than everyone else in the market, things tend to work out for you. One of the reasons I believe ‘capitalism’ can be so beautiful and regenerative is because one has to step out of self and truly serve a big need for others in order to make money. When you’re an entrepreneur it’s so easy to become obsessed with your own wants and needs. But the people I’ve seen do this work best are obsessed with other people’s needs and desires. 

What are some resources you have access to which are beneficial to founders who want to qualify for impact investment?

I advise everyone to read everything written by Warren Buffet and Charlie Munger. And also just watch all the great videos by YC on start-ups and mistakes. Read the First Round Review. There are so many free resources today.

There might be a founder here who reads this and wants to connect with your organization. What are key funding priority areas in your organization? Why are those the areas of interest? 

Currently, we invest in buyouts mainly with a tiny pool of capital (more like a partner angel fund) for start-ups - particularly people we feel have a tough time raising early friends and family money because they don’t have that kind of network.

How can founders who align with your priorities get in touch with your organization?

Email us. That said, unless they have a business for sale, we probably aren’t for them.

What is one thing you want impact-oriented founders to always keep in mind?

It’s a marathon, not a sprint.

Tell me about an impact investment opportunity that made a huge impression on you. Why was this significant?

I love our investment in the Fourth Phase. When Nana first pitched us we basically all had tears in our eyes. Especially the men in the room who didn’t really understand everything our wives, moms, and sisters go through during and after childbirth. They are really special entrepreneurs with a really special group of products. 

What do you enjoy most about your job?

I love the process of entrepreneurship. It’s not for everyone.

If someone wanted to pivot to impact investing, what are some top pointers you'd share with them?

Just do it. Start where you are. Put together a small group of friends who can pitch in and start looking at deals together. There’s no better experience than actually doing deals. 

Worth reading

How to Make Your Product Idea Go Viral Inside Your Company: Lessons From Figma Slides - First Round Review

25 Hard Questions Every Founder Should Ask Themselves - First Round Review

Worth listening to

How To Find And Keep Product-Market Fit - In Depth by First Round Review

AI Hot Takes and Unusual Twitter Fundraising Strategies - In Depth by First Round Review

Highlighted Resource

As recommended by our guest, I found this Warren Buffet Archive for your reading and viewing pleasure. A quick tip to use this is to calendarize it. Depending on your schedule, you can read an article weekly or biweekly.

End Notes

If you have a product or resource that can be helpful to an impact-oriented organization on its way to becoming investible, fill out this Google form. Who knows, you might be featured in the highlighted resource section.

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PS: Are there topics you would like to see covered? Share them, and I will see how to add them to the existing content schedule.