In Foundations

Micronews on philanthropy.

Foundation Program Officers Like Venture Capitalists?

By Sasha Dichter of the Acumen Fund:

One of the big unanswered questions in the nonprofit space is how new, innovative, effective nonprofits can raise enough capital to grow big and expand their impact.  At the core of the conversation is the fact that, unlike in for-profit markets, there’s no clear and established way for nonprofits to raise money around a great idea and a great team.

The ideal proxy, in my opinion, is the venture capital business. . . .

[T]here are a number of features of the venture investing world that will be very unfamiliar to the nonprofit space, and we would have to figure out how to tackle these if we expect to make progress:

  1. Acceptance of failure. . . .
  2. Betting on people and teams first. . . . 
  3. Clear path to exit. . . . 
  4. Aligned incentives between the venture investor and the entrepreneur. . . .
  5. We’re in this together. . . .

Full article here.

Follow-up article at Tactical Philanthropy here.

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Filed under: giving, innovation

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