Analysis
Novogratz’s description aligns with the widely accepted definition of patient capital as investment that prioritizes social or environmental impact over immediate financial returns, accepting higher risk, delayed liquidity, and extended timelines. This concept is central to her work at Acumen Fund (now Acumen), where she pioneered such models. Academic and industry sources, including the Global Impact Investing Network (GIIN) and Acumen’s own materials, corroborate this framing. No credible contradictions to her definition exist in the literature.
Background
Patient capital emerged as a term in the early 2000s within impact investing circles, distinguishing it from traditional venture capital or philanthropy. Novogratz popularized the phrase through Acumen’s work, which focused on scalable, market-based solutions to poverty. The 2009 book *The Blue Sweater* codified her experiences and philosophy, influencing later frameworks in social enterprise funding.
Verdict summary
Jacqueline Novogratz’s definition of *patient capital* in *The Blue Sweater* accurately reflects its established meaning in impact investing and development finance.