Business Strategy

People sometimes see Acumen raising large amounts of commercial capital and assume we no longer need philanthropy. No sooner had we announced $250M for our Hardest-to-Reach fund — to bring off-grid light and electricity to 70 million people across 17 of Africa’s most challenging markets — than some concluded Acumen must be set. In fact, the opposite is true. First, let me acknowledge how tough this fundraising environment is. I couldn’t be prouder of the team and partners who made our Hardest-to-Reach announcement possible after 2.5 years of relentless effort. And yet it’s worth underscoring: none of this would have been possible without philanthropy. Philanthropy is the first mover. It allows us to place early bets in fragile markets like Malawi and Benin, cover the development costs needed to structure and raise investment across the capital spectrum and provide the technical assistance that builds capacity. To put a finer point on it: of the nearly $250M raised for Hardest-to-Reach, more than $80M is philanthropic. That risk-taking anchor made it possible to prove new models — and ultimately unlock institutional investment. During Climate Week last month, I met philanthropists who see this as the time to pivot from grantmaking toward impact investing. While I understand the instinct, I want to offer a reframing: it’s not either/or. If you want your capital to have lasting impact, there may be no better use than catalytic philanthropy — especially when deployed through blended finance models like Hardest-to-Reach. Philanthropy cannot see itself at the margins. It is catalytic capital — risk-taking, patient, and unabashedly impact-first — creating the conditions for commercial capital to follow. And it's more important now than ever as traditional aid shrinks and many governments shift from grants to investment approaches. At Acumen, philanthropy from donors at all levels remains our bedrock. It enables us to reach the hardest-to-reach, build inclusive markets where none exist, and keep social impact at the center of everything we do. And because solving problems of poverty is Acumen’s mission, raising philanthropic capital will remain essential to our work.

Every time a card payment is processed, 𝘁𝗵𝗿𝗲𝗲 main types of fees are involved. Here’s a simple breakdown of the Three Core Fees: 1️⃣ Interchange Fee This is paid by your acquiring bank (or payment processor) to the cardholder’s bank (the issuer). It’s set by the card networks (like Visa and Mastercard; sometimes regulated), and is designed to cover things like fraud, credit losses, and infrastructure costs. 2️⃣ Scheme Fee Charged by the card networks themselves, this fee covers the operation of the payment system (“rails” that process the transaction). 3️⃣ Acquirer Markup This is the fee your acquirer or payment service provider (PSP) charges you, the merchant. It includes their costs, risk management, and profit margin for processing and settling the payment. The total cost a merchant pays is called the Merchant Service Charge, which is the sum of these three components. The Main Pricing Models: ► Bundled Pricing All fees are grouped into one flat rate. This is very common with small businesses. It’s easy to understand but doesn’t provide insight into what you’re actually paying for. ► Interchange+ The interchange fee and the acquirer’s fee are shown separately, but the scheme fee is typically bundled with the markup. This model offers some transparency. ► Interchange++ Each fee—the interchange, scheme, and acquirer markup—is itemized separately. This is the most transparent model and is favored by larger or multi-country merchants who want to track costs precisely. Who Chooses the Pricing Model? Most acquirers and PSPs decide what pricing model you’re offered. Unless you negotiate or have significant transaction volume, you’re likely to get bundled pricing by default. Larger or more experienced merchants who understand payments often push for Interchange++ for its clarity and fairness. Smaller merchants often aren’t aware that alternatives exist or find it difficult to compare offers. How Interchange Fees Vary Globally: Some regions (like the EU, UK, China, and Brazil) cap interchange fees to lower costs for merchants and stimulate competition. The US regulates only part of the system—such as capping debit card fees for large banks (the Durbin Amendment)—while credit card interchange remains uncapped and usually higher. Other countries, like India and Brazil, regulate interchange as part of broader financial inclusion goals. In markets with stricter regulation, merchants often benefit from lower, more predictable fees, making it easier to accept cards. Where fees are higher and less regulated, issuers can offer consumers more rewards (like cashback), but those costs are passed back to merchants—and sometimes their customers. Every model shifts the balance of costs and benefits between banks, merchants, and consumers in different ways. More info below👇, and I highly recommend reading my complete deep dive article about Interchange Fee and what factors impact the rate: https://bit.ly/44T4VJA

Apartment operators are nervous. You can see it in the latest rent data. After six straight months of increased rent momentum nationally, year-over-year rent growth has backtracked a bit in each of the past two months -- coinciding with prime leasing season. Nationally, YoY effective rent growth eased from 1.05% in March to 0.74% in May. The modest backtracking comes DESPITE strong absorption, steady occupancy rates, and improved affordability (declining rent-to-income ratios). We talk a lot about weak consumer sentiment. But it's not just consumers. Sentiment is a powerful variable -- even if one hard to measure -- among operators setting rents. When operators are nervous, they'll likely sacrifice on rents (or ramp up concessions) to protect occupancy. It's happening most clearly in the high-supplied markets across the Sun Belt and Mountain regions, BUT we're also seeing stalled momentum in the lower-supplied Midwest and Coastal markets. So while it was the 40+ year high in supply that pushed rents down in the last two years (even amidst strong demand), it's not just about supply anymore. Washington, D.C., is a prime example of this trend. There's been a lot of nervousness about the D.C. market due to DOGE cuts and federal layoffs. And yet apartment occupancy rates have held strong, improving 50 bps since January and now topping 96%. Rent-to-income ratios among new lease signers (in professionally managed, market-rate apartments) have fallen to 23.1%, according to RealPage data. The REITs with D.C. exposure have all reported solid demand and healthy collections there, too. And yet: Rent growth in D.C. is backtracking more than most of the country. Year-over-year effective rent growth eased from 3.45% in March to 2.35% in May. In most lower-supplied Coastal and Midwest markets, we're seeing operators just hold steady on rents rather than continue the steady upward push we saw previously. And remember: This is the time of year we typically see rents accelerate. In the higher-supplied Mountain and Sun Belt markets, reduced effective rent momentum is primarily driven by increased concessions. Among stabilized apartments (non lease-ups) here utilizing concessions, the average discount increased from 8.9% of asking rent in March to 10.1% in May. That's more than one month "free" on a 12-month lease. Markets with the most deceleration in effective rent change over the past two months include a mix of lower-supply and higher-supply markets: Las Vegas, Riverside, Baltimore, Austin, Memphis, Milwaukee, Kansas City, Washington DC, Denver and Orlando. Markets immune to the trend (with continued momentum) include San Francisco, where sentiment was previously so low it could only go up. There's no other reasonable explanation for slowing rent momentum than nervous operators worried about weak consumer confidence and the parade of headlines warning of a potential recession. Where do rents go from here? Thoughts? #apartments #rents

Great Board conversations don’t sell—they stretch your thinking. Having spent time both as a member of the management team working with the Boards and as a Board member myself, I’ve seen a few common pitfalls that even seasoned leaders fall into. Here are three that stand out: 1. Trying too hard to “sell” the strategy. Your job with the Board isn’t to pitch—it’s to inform. The goal is to create a regular rhythm of updates around the business, strategy, and execution. One of the fastest ways to lose credibility is to act like everything’s perfect. Every company—no matter how successful—has real challenges. Board members know this. Being candid about those challenges doesn’t make you look weak. It makes you trustworthy. Transparency matters. Your numbers already tell part of the truth. Bring the rest. 2. Keeping the strategic aperture too narrow. Executives often focus on operational detail and forget that Boards can be most helpful in widening the lens. Leverage their distance from the day-to-day as a feature, not a flaw. I cringe when I hear, “I need to dumb it down for the Board.” In reality, the best Boards raise the level of strategic thinking. Bring them into big questions: “What does our industry look like in five years? Where should we be positioned?” Boards are at their best when they help you challenge your assumptions and stretch your thinking. 3. Not asking for guidance. Some of the best advice I’ve ever received in my career has come from Board members. Don’t just report—ask. Tap into their experience. Invite their perspective. The Board appreciates humility, especially when you say, “I haven’t figured this out yet—I don’t have the answer. But what are the strategic issues you would consider if you were in my shoes?” Because here’s the truth: The smartest executives don’t try to impress the Board—they learn from it. And here are 3 things I’ve learned to always get from a great Board conversation: 1. Start with the commercial “why.” Boards aren’t there for a product roadmap walkthrough—they want to understand business impact. Always lead with the commercial dimension. Why does this matter for revenue, margin, competitive advantage, or long-term growth? When you start there, everything else has context. Your Board isn’t a stage—it’s your secret weapon. 2. Define what good looks like. One of the most helpful things you can do is to show what “great” would look like—clearly and with metrics. It gives the Board a benchmark to assess against, and it keeps the conversation focused on outcomes, not just activity. 3. Ask what you’re not seeing. The question I’ve found most consistently valuable: “What do you think we’re not thinking about as a management team?” You’ll be amazed at the insight that comes back. This invites perspective without defensiveness—and you’ll often uncover blind spots or strategic angles that weren’t even on your radar. Because Boards aren’t there to be dazzled—they’re there to help you see what you can’t.

In the U.S., you can grab coffee with a CEO in two weeks. In Europe, it might take two years to get that meeting. I ’ve spent years building relationships across both U.S. and European markets, and if there’s one thing I’ve learned, it’s this: networking looks completely different depending on where you are. The way people connect, build trust, and create opportunities is shaped by culture-and if you don’t adapt your approach, you’ll hit walls fast. So, if you're an executive expanding globally, a leader hiring across regions, or a professional trying to break into a new market-this post is for you. The U.S.: Fast, Open, and High-Volume Americans love to network. Connections are made quickly, introductions flow freely, and saying "let's grab coffee" isn’t just polite—it’s expected. - Cold outreach is normal—you can message a top executive on LinkedIn, and they just might say yes. - Speed matters. Business moves fast, so meetings, interviews, and hiring decisions happen quickly. But here’s the catch: Just because you had a great chat doesn’t mean you’ve built a deep relationship. Trust takes follow-ups, consistency, and results. I’ve seen European executives struggle with this—mistaking initial enthusiasm for long-term commitment. In the U.S., networking is about momentum—you have to keep showing up, adding value, and staying top of mind. In Europe, networking is a long game. If you don’t have an introduction, it’s much harder to get in the door. - Warm introductions matter. Cold outreach? Much tougher. Senior leaders prefer to meet through trusted referrals—someone who can vouch for you. - Fewer, deeper relationships. Once trust is built, it’s strong and lasting—but it takes time to get there. - Decisions take longer. Whether it’s hiring, partnerships, or leadership moves, things don’t happen overnight—expect a longer courtship period. I’ve seen U.S. executives enter the European market and get frustrated fast—wondering why it’s taking months (or years!) to break into leadership circles. But that’s how the market works. The key to winning in Europe? Patience, credibility, and long-term thinking. So, What Does This Mean for Global Leaders? If you’re an American executive expanding into Europe… 📌 Be patient. One meeting won’t seal the deal—you have to earn trust over time. 📌 Get introductions. A warm referral is worth more than 100 cold emails. 📌 Don’t push too hard. European business culture favors depth over speed—respect the process. If you’re a European leader entering the U.S. market… 📌 Don’t wait for permission—reach out. People expect direct outreach and initiative. 📌 Follow up fast. If you’re slow to respond, the opportunity moves on without you. 📌 Be ready to show value quickly. Americans won’t wait months to see if you’re a fit. Networking isn’t just about who you know—it’s about how you build relationships. #Networking #Leadership #ExecutiveSearch #CareerGrowth #GlobalBusiness #US #Europe

Scaling from 50 to 100 employees almost killed our company. Until we discovered a simple org structure that unlocked $100M+ in annual revenue. In my 10+ years of experience as a founder, one of the biggest challenges I faced in scaling was bridging the organizational gap between startup and enterprise. We hit that wall at around 100~ employees. What worked beautifully with a small team suddenly became our biggest obstacle to growth. The problem was our functional org structure: Engineers reporting to engineering, product to product, business to business. This created a complex dependency web: • Planning took weeks • No clear ownership  • Business threw Jira tickets over the fence and prayed for them to get completed • Engineers didn’t understand priorities and worked on problems that didn’t align with customer needs That was when I studied Amazon's Single-Threaded Owner (STO) model, in which dedicated GMs run independent business units with their own cross-functional teams and manage P&L It looked great for Amazon's scale but felt impossible for growing companies like ours. These 2 critical barriers made it impractical for our scale: 1. Engineering Squad Requirements: True STO demands complete engineering teams (including managers) reporting to a single owner. At our size, we couldn't justify full engineering squads for each business unit. To make it work, we would have to quadruple our engineering headcount. 2. P&L Owner Complexity: STO leaders need unicorn-level skills: deep business acumen and P&L management experience. Not only are these leaders rare and expensive, but requiring all these skills in one person would have limited our talent pool and slowed our ability to launch new initiatives. What we needed was a model that captured STO's focus and accountability but worked for our size and growth needs. That's when we created Mission-Aligned Teams (MATs), a hybrid model that changed our execution (for good) Key principles: • Each team owns a specific mission (e.g., improving customer service, optimizing payment flow) • Teams are cross-functional and self-sufficient,  • Leaders can be anyone (engineer, PM, marketer) who's good at execution • People still report functionally for career development • Leaders focus on execution, not people management The results exceeded our highest expectations: New MAT leads launched new products, each generating $5-10M in revenue within a year with under 10 person teams. Planning became streamlined. Ownership became clear. But it's NOT for everyone (like STO wasn’t for us) If you're under 50 people, the overhead probably isn't worth it. If you're Amazon-scale, pure STO might be better. MAT works best in the messy middle: when you're too big for everyone to be in one room but too small for a full enterprise structure. image courtesy of Manu Cornet ------ If you liked this, follow me Henry Shi as I share insights from my journey of building and scaling a  $1B/year business.

The shift from seats to agents pressures SaaS margins. At the same time, the longstanding practice of getting enterprise customers to pre-commit and also prepay for functionality they may never deploy will get harder as CIOs look to free budget for their own LLM costs. To weather the storm, some SaaS companies have increased prices. This boosts revenue and margins in the short-term but can't be done repeatedly and creates even greater scrutiny over shelfware as procurement teams right-size and shift contracts to "pay as you go." To achieve sustainable growth, SaaS companies need to become hyperefficient at sales and marketing. Here are common ways to do so and who's doing it well: 1. PLG. Shopify and Atlassian exemplify efficient go-to-market based on product-led growth with free trials, low-friction upgrades and upsells. Their sales teams only need to get involved in the biggest opportunities at the largest accounts; every other step in acquisition, commercial transaction, activation, onboarding, and growth is self-service and automated. 2. Vertical SaaS. Guidewire Software and Veeva Systems are laser-focused on insurance and life sciences, respectively. Rather than casting a wide net, they spear-fish with deep domain knowledge and purpose-built solutions for that industry's specific workflows and regulatory requirements. Guidewire doesn't need to buy Super Bowl ads– their annual customer conference is the Super Bowl for property & casualty insurance executives. Nearly zero GTM effort is wasted– unsurprisingly they're the two most efficient on the list. We modeled Hearsay Systems after both these companies, and this focus allowed us to win incredible market share among Fortune 500 banks & insurers despite only raising $60M in totality. 3. Relocate operations to lower-cost regions and AI. This is private equity's favorite playbook to take costs out of companies they buy. Field sales continues to shift more to Zoom, which means you can hire AEs anywhere. Inside sales contributes a greater % of revenue as PLG motions are established. AI handles top-of-funnel leads qualification and generating marketing content and campaigns. 4. Focus on gross revenue retention. Because of high customer acquisition costs in #SaaS, leaky buckets are margin killers. Use LLMs to help customer success teams analyze product usage, segment cohorts, and identify opportunities to increase value realization. Put in guardrails to prevent sales reps from overselling an account, as doing so only creates churn in the next renewal cycle. 5. Introduce another product line. This only works if your new product has the same buyer as your existing products. Many SaaS acquisition pro formas fail to actualize for this reason, as it's not actually feasible to have the same AE sell both old and new products. Every SaaS company right now needs to double down on one or more of these levers in the AI era.

🌟 𝐒𝐭𝐨𝐩 𝐓𝐡𝐢𝐧𝐤𝐢𝐧𝐠 𝐁𝐢𝐠 - 𝐒𝐭𝐚𝐫𝐭 𝐓𝐡𝐢𝐧𝐤𝐢𝐧𝐠 𝐖𝐢𝐝𝐞! The biggest breakthroughs don’t happen by digging deeper into one area - they happen when ideas, industries, and technologies collide. Think about it: AI combined with IoT has transformed healthcare. Sustainability powered by cloud solutions is opening new markets. The magic lies at the 𝐢𝐧𝐭𝐞𝐫𝐬𝐞𝐜𝐭𝐢𝐨𝐧𝐬 - where fresh opportunities emerge. 🚀 𝐖𝐡𝐲 𝐓𝐡𝐢𝐬 𝐌𝐚𝐭𝐭𝐞𝐫𝐬 1️⃣ 𝐅𝐚𝐬𝐭𝐞𝐫 𝐈𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐨𝐧: Combining technologies like AI and cloud accelerates growth. 2️⃣ 𝐍𝐞𝐰 𝐌𝐚𝐫𝐤𝐞𝐭 𝐑𝐞𝐚𝐜𝐡: Partnerships across industries unlock untapped customers. 3️⃣ 𝐒𝐡𝐚𝐫𝐞𝐝 𝐕𝐚𝐥𝐮𝐞: Cross-industry collaboration lowers costs and drives new value. At Deloitte, I’ve seen the power of collaboration. By partnering with organizations like #Celonis, #Schaeffler, #HumboldtInnovation, and #GermanEntrepreneurship, we’ve established the European non-profit AI ecosystem, #KIPark. This initiative brings together players from different industries to unlock innovation. For example, we’ve developed an ESG platform, marking a significant step toward sustainable solutions that are robust and business-relevant. 🛠️ 𝐓𝐡𝐫𝐞𝐞 𝐖𝐚𝐲𝐬 𝐭𝐨 𝐒𝐭𝐚𝐲 𝐀𝐡𝐞𝐚𝐝 1️⃣ 𝐋𝐨𝐨𝐤 𝐎𝐮𝐭𝐬𝐢𝐝𝐞 𝐘𝐨𝐮𝐫 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲: Who could you partner with to create something new? 2️⃣ 𝐁𝐮𝐢𝐥𝐝 𝐌𝐢𝐱𝐞𝐝 𝐓𝐞𝐚𝐦𝐬: Pair data scientists with operations or customer-facing teams. 3️⃣ 𝐄𝐱𝐩𝐞𝐫𝐢𝐦𝐞𝐧𝐭 𝐁𝐨𝐥𝐝𝐥𝐲: Start small pilots that combine tech and business ideas. 🌍 𝐓𝐡𝐞 𝐁𝐨𝐭𝐭𝐨𝐦 𝐋𝐢𝐧𝐞 The future belongs to businesses that connect the dots others don’t see. Breadth - not just depth - is the key to growth and resilience. 💬 𝐘𝐨𝐮𝐫 𝐓𝐮𝐫𝐧 What’s one unexpected partnership or idea you’ve seen recently that sparked innovation? Let’s exchange ideas. Who knows what new intersections we might uncover together? #Deloitte #AI #Innovation #Leadership #BusinessStrategy #Partnerships 𝐴𝑟𝑡𝐵𝑎𝑠𝑒𝑙. 𝐶ℎ𝑎𝑛𝑔𝑒𝑂𝑓𝑃𝑒𝑟𝑠𝑝𝑒𝑐𝑡𝑖𝑣𝑒. 𝐹𝑜𝑢𝑛𝑑 𝑎𝑡 @𝑔𝑎𝑏𝑟𝑖𝑒𝑙𝑙𝑒𝑒𝑒𝑟𝑢𝑡ℎ

I shifted to Mumbai (from Delhi) a year back and my expenses are now 2x as compared to Delhi While you can’t control the prices, you can control your expenses. I follow the below approach to keep track of expenses: a. Set a budget: Start by deciding how much you want to save as a percentage of your salary. Then, work backwards to determine how much you can spend in each area. b. Use SIPs to limit spendable cash: Set up daily and monthly SIPs of small amounts so there’s no excess balance available in your bank account. Psychology plays a key role here—when you see only 50% of your salary left, you become more conscious of your spending. c. Identify your biggest expenses: This is usually rent, followed by transportation. For my office route, public transportation is not smooth, so I take a cab every day. But instead of booking a cab on the spot every day, I try finding a regular driver for my commute. This not only saves money but also time. d. Buy groceries in bulk: This helps you avoid surge pricing and delivery fees. The amount may seem small, but frequent orders add up over time. e. Track miscellaneous expenses: Use an expense-tracking app to monitor categories like dining out, entertainment, and coffee. Set limits and stick to them. Discipline is key! f. Avoid cash transactions: While some prefer using cash for various reasons, I opt for digital payments to better track my spending. If you prefer cash, consider logging your expenses to stay on top of them. #saving #finance

Plastic is highly durable and resistant to decomposition. Most plastics take hundreds to thousands of years to break down, meaning that once produced, they persist in the environment for an extremely long time. What do you think about this initiative in Bali? Marine Pollution: A large proportion of plastic waste ends up in the oceans, where it poses a serious threat to marine life. Animals often mistake plastic for food, leading to ingestion and, in many cases, death. Microplastics, which are tiny plastic particles resulting from the breakdown of larger pieces, can enter the food chain, affecting not just marine species but also humans who consume seafood. Harm to Wildlife: Animals can become entangled in plastic waste, leading to injury or death. For example, plastic rings, nets, and bags are common culprits in the harm and killing of birds, fish, and other wildlife. Toxicity: Some plastics contain harmful chemicals, such as BPA (Bisphenol A) and phthalates, which can leach into the environment and potentially enter the human body, causing health issues. The incineration of plastic waste can also release toxic gases, contributing to air pollution. Carbon Footprint: The production of plastic is energy-intensive, relying heavily on fossil fuels. This contributes to greenhouse gas emissions, exacerbating climate change. How AI Can Help Address the Plastic Issue: Waste Sorting and Recycling: AI can enhance recycling processes by improving the accuracy and efficiency of waste sorting. Machine learning algorithms, combined with robotic systems, can identify and separate different types of plastic from other waste materials, increasing the volume of plastic that gets recycled. Plastic Detection in Oceans: AI-powered drones and satellite imaging can be used to detect plastic waste in oceans. By analyzing images with AI, we can better understand the scale of ocean plastic pollution and target cleanup efforts more effectively. Material Innovation: AI can accelerate the development of alternative, more sustainable materials by analyzing vast datasets of chemical compounds and predicting their properties. This can lead to the creation of biodegradable plastics or entirely new materials that have less environmental impact. Supply Chain Optimization: AI can help companies optimize their supply chains to reduce plastic use. By analyzing data on production, packaging, and transportation, AI can suggest ways to minimize plastic waste and encourage the use of sustainable alternatives. Education and Awareness: AI-driven platforms can be used to educate the public about the impacts of plastic pollution and encourage more sustainable behaviors. Personalized recommendations based on AI analysis can guide consumers to make more environmentally friendly choices, such as choosing products with less plastic packaging. #plastic #ai #technology #innovation via @sungai_design