MadiDrop PBC Sets the Standard for Public Benefit Companies
“Where we can operate on one hand like a non-profit, where we’re very focused on doing something positive, but where we can capitalize on the efficiencies of the commercial marketplace… those are some of the benefits of a public benefit corporation, and the reason we chose the structure. We get to leverage the positives from each side of the equation.”
– David Dusseau, CEO of MadiDrop PBC
The mission of a public benefit company blends the social impact objectives of a non-profit with the sound business practices of a commercial venture. CEO David Dusseau talked with Conversion Factor to explain the company’s vision for leveraging its corporate structure to bring safe drinking water to communities throughout the world.
In an interview with Marshall Hanbury Jr., David described the difference between a public benefit company (PBC) and a B-Corp. “A B-Corp is a certification that organizations can achieve if they aim to be socially responsible and adhere to specific stipulations. As a PBC, we take it one step further. We are incorporated in the State of Delaware as an entity that has a mission to have a positive impact – a public benefit – on the world. This type of incorporation places specific standards on our leadership to fulfill our public benefit statute as outlined in our Articles of Incorporation while operating efficiently as a commercial entity. The advantages of being a public benefit company are that the commercial efficiencies drive the social mission.”
The company operates much the same as a high tech start-up. “Fundamentally, our goal is the same as many high tech companies. We are bringing to market a product that has high market potential – in this case, a market that represents hundreds of millions of dollars. This makes MadiDrop PBC a big market venture. We want to gain as much market traction as possible so that we provide attractive returns to our current investors, and position ourselves for future impact investments. If we get as many MadiDrops as possible into the hands of the nearly 2 billion people who need safe water, then we’ll have turned a tremendous return for our investors while fulfilling our mission to address global health challenges associated with unsafe drinking water.”
In what Marshall described as “a happy marriage,” MadiDrop PBC’s corporate structure combines the productivity of a commercial entity with the drive to get the product to people who need it. David agreed. “The value of the company depends on market penetration which coincides with our social mission – to bring as many drops as possible to communities in need. By maximizing impact, we’ll generate a strong rate of return for those who invested in us.”