#78: Patrick Duggan: Effectively Marketing and Communicating Impact at Pacific Community Ventures
Recently, Rahul and Mark interviewed Patrick Duggan, the Director of Marketing and Communications at Pacific Community Ventures (PCV), a growth equity impact investing firm. Venture Capitalist (VC) firms invest money from investors into promising startup companies and reap a portion of the profits. Mr. Duggan’s firm specializes in investing in startups developed by underrepresented minorities as a means to propel economic change at the root of social issues. Although a VC’s primary mission is to supply capital in the form of money, they also give expert advice and open the doors to relations, which are both invaluable in today’s global economy.
Growing up in New Hampshire, Mr. Duggan saw middle-class jobs and opportunities largely leaving the state, an experience that has shaped his views on finance investment and economic policy, especially in their effects on working-class families.
Due to his significant experiences at an early age, Mr. Duggan now works to primarily invest in small businesses run by minority groups, specifically women and people of color as a part of Pacific Ventures. These groups make up a majority of startups today, partly as a result of their grit and hardened personalities resulting from an unequal childhood. Even so, inequality persists as these groups are often the least funded by banks, hedge funds, and other investment institutions. Mr. Duggan attributes his childhood experiences to shaping his passion for doing his part in bolstering underprivileged communities economically.
When asked about their social impact, Mr. Duggan illustrated his six-prong approach, which rather than solely viewing the number of jobs created, also seeks to quantify the quality of each job on a long term basis, something which differentiates them from other VC firms. They also match volunteers with business experience to new startup owners who could use the advice to augment their company at the initial stage, the stage which makes or breaks a company.
Through a series of questions and over the phone meetings, PCV is able to match prospective businesses with the investors or volunteers who will serve them best. Mr. Duggan emphasizes the importance of really getting to know the owner on top of data crunching the startups early numbers to add some qualitative data to the mix. Personalities play a major role in determining the probability of a startup’s success and ensuring wavelengths match between investor and investee drastically increases performance in his experience. Once questions are answered and a phone call is completed, an algorithm computes the best match, something a human can’t do due to the sheer number of investors. Many business owners stick with PVC for years, often learning different perspectives in the business world from different advisors, helping them gain generalized experiences that are extremely helpful in today’s specialized world due to their ability to rapidly change perspectives.
According to Mr. Duggan, one of the most common mistakes by business owners is to jump to tactical implementation instead of starting with the basics and building a strong foundation by laying out a strategy, audience, etc. He attributes this to owners’ passions which is generally a good thing but may cause them to overlook simple, but hidden, holes within their marketing strategy. This often leads to a waste of money, but it is not their fault. Though these are pitfalls common to most new entrepreneurs, by combining their new ideas with seasoned business experts, PVC enables startups to reach large consumer bases, increasing the likelihood of long-lasting success.
In regard to advice to VC jobs, Mr. Duggen, offering universally applicable advice, urges everyone to reach out to employees currently in the field for an informational meeting over coffee or on zoom. Fear of being turned down prevents us from reaching out since we humans are social beings, but putting things into perspective, the worst thing that could happen is being ignored, which shouldn’t affect one’s daily life. As Mr. Duggen puts it, “The vast majority of jobs are not posted online, but are rather filled by people in internal networks,” which makes sense. An employer would prefer someone they know and trust in person rather than someone who has the credentials on paper. We generally value principles over numbers.
He recommends students to take these opportunities since even if you feel like you didn’t learn anything initially, you will look back in the future and realize dramatic outcomes. Being bold is a must in order to maximize impact.
When asked for advice regarding impact reports, Mr. Duggen advocates for transparency and a statement of mission. He emphasizes the importance of portraying the “why” since most current reports only look at the “how” or the “what.” People tend to gravitate towards those with motive and purpose and it’s important to convey that conspicuously. He also encourages reading reports from competing VCs in order to be able to tell a story that is unique and immediately captures the investor, allowing them to relate on a human level rather than solely through their business, since on paper, most businesses are the same. Emotional bonds, often neglected in today’s data-driven world, are just as important as logical bonds.
For the final question regarding advice for high school students, Mr. Duggen advises students to look at the bigger picture to gain a sense of purpose and understanding of the broader world. As he says, “Go out, and start making change.” Even the smallest things help society and help shape one’s identity whether that be writing to congressmen and senators or protesting for social change. As a parting piece of advice, Mr. Duggen encourages “Have hope,” do not let anyone tell you that you cannot do something that you’re passionate about.
You can watch the full interview here.
Author: Srikar Parsi
Editor: Ayan Lateef
Interviewers: Rahul Kavuru and Mark Walier
Graphic: Sraavya Penumudi