BoardSource’s Post

Interesting article here from the Miller Center for Social Entrepreneurship about venture philanthropy and impact investing and how they're becoming more common in the world of social impact. https://lnkd.in/esxdAQAk As we navigate new avenues for impact at Sunflower Communications, I'm inspired to integrate these strategies into our mission of empowering nonprofits and social enterprises. Let's leverage these insights to drive meaningful change together: https://lnkd.in/eEX-z2Xz 🌱💡

The Growing Role of Donor-Advised Funds (DAFs) in Venture Capital! 🚀 Did you know? Donor-Advised Funds (DAFs) are moving beyond their traditional philanthropic roles and stepping into venture capital! By funding high-impact startups and social enterprises, DAFs are reimagining philanthropy—creating a unique blend of charitable giving and strategic investment that not only drives innovation but also strengthens the communities they serve. This shift is making waves, turning DAFs into powerful tools for social and economic impact. Imagine a future where donations spark startups, fuel cutting-edge technology, and empower ventures that address critical issues across health, education, and sustainability. With DAFs funding venture capital, the boundaries of philanthropy are expanding to include both financial returns and positive social change. 💬 What are your thoughts on DAFs funding venture capital? Could this be the future of philanthropy? #ImpactInvesting #DAFs #VentureCapital #SocialImpact #PhilanthropyReimagined

In 2023 I wanted to start a small VC fund to invest in social impact technology companies - here’s why I didn’t do it 👇🏼 After shutting down Pond, I realized I had built a valuable network among nonprofit leaders and technology providers & had unique insight into how things worked in the ecosystem 🌟 I began consulting for several founders, sharing those insights and connections. I had a few clients, but I had dozens of other founders reaching out that wanted to work with me, but were struggling to raise capital 😑 That’s when I thought, what if I led an early-stage investment vehicle where I could help a lot more founders as their investor instead of consultant, and repurpose my own network to help build better solutions and go to market faster 🐆 I discussed the idea with 50+ people over the course of a few months and decided against it in the end because: 1️⃣ Market Environment: While I got a decent number of capital commitments from founders who had successful exits, everyone I spoke to in general VC universally said it was a terrible time to raise money for a fund ⛈️ The entrepreneur in me kept pushing back that it’s never a “good time” and it’s always hard, but the message was so consistent 🤷🏼♂️ 2️⃣ Philanthropy: Part of my strategy was to partner with Philanthropy to align grant funding to pay for training or subscription costs of nonprofit customers, and/or make direct investment in the fund, and I was disheartened by early feedback 😔 I learned that funders rarely get excited about funding things to help the nonprofit sector at large, as opposed to a specific cause or region, and - more shocking to me - don’t actually think new tools or solutions need to be developed. I didn’t speak to everyone obviously, but those early indications weren’t promising 🚧 3️⃣ Cost: I learned that it would be a long road to get to a point where I was making any kind of livable income. It became clear that going about VC on your own requires a substantial amount personal wealth… 🤑 After living “on the edge” financially for the past few years, I worried about my mental health signing on for more years of that 🧘🏼♂️ 4️⃣ Better opportunities: VC isn’t going anywhere. There will be times in the future when the market and I’m personally on better footing 🔮 And the chance to join the early team at Chariot, creating a revolutionary payment infrastructure for Philanthropy, was a once in a lifetime kind of opportunity 🤩 4 months after making the decision, I have more conviction than ever that I did the right thing ✅ #venturecapital #nonprofit #philanthropy #fundraising #socialimpact

Bootstrapped founders are selfish. VC-backed founders are self-less. VC-backed founders are some of the most generous and charitable people on the planet. Think about it — they are willing to give up 10 years of their lives to essentially donate their company to society. Sure, they won't really make much money in their exit (since their ownership stake was so heavily diluted with each funding round). But they aren't in it for the money. They want to make a positive impact... for SOCIETY. It is truly an honorable calling to try and create a lasting company out of the kindness of your heart. Bootstrapped founders on the other hand are EXTREMELY selfish. They want to retain ownership... AND get massive financial upsides. If they stay in the company, they're going to hoard all that wealth for themselves and their team! They aren't even willing to give a little to the institutional investors OR the investors on main street 😭 And if they end up selling the company for $50m or $100m, they get to keep the bulk of that... just in their personal bank account! Truly, not very altruistic 😡 The world needs kind-hearted venture-backed founders the same way we need charities. So if you've taken venture capital, give yourself a pat on the back! You're really doing the good work.

Venture philanthropy is transforming the philanthropic landscape by applying the principles of venture capital to achieve greater social impact. This strategic approach doesn't just donate; it invests in change, combining capital with compassion to tackle some of the world's most pressing issues. From enhancing educational outcomes through the NewSchools Venture Fund to pioneering treatments for cystic fibrosis with the Cystic Fibrosis Foundation, venture philanthropy is making measurable and sustainable impacts. Learn how these innovative investments are creating lasting changes and driving progress in education, healthcare, and economic development. 👉 Want to see how venture philanthropy is making a difference? Click to read the full article and discover the impact of combining investment with intent. #VenturePhilanthropy #SocialImpact #InnovativeGiving #EducationForAll #HealthcareInnovation #EconomicDevelopment #PhilanthropyInAction #EquityReport

Look up the term venture philanthropy & you’ll find various meanings. I like the simplicity of defining venture philanthropy as applying or redirecting principles of traditional venture capital (VC) financing to achieve philanthropic endeavours. https://ow.ly/ISsz50QFEcc

Decoding the world of VC fundraising can be complex. Learn more about the landscape in this insightful post. #VC #fundraising

A good case study from Silicon Valley Social Venture Fund - SV2 and The Chronicle of Philanthropy on making your Board more representative of those it serves (aka diversifying your board): https://lnkd.in/e78Js7VY

Venture Capital News - Venture Capital News Headlines

There are still a few seats left for the #ChangeAngel Challenge! Starting March 27th, join me and Sue Bevan Baggott every Wednesday for a groundbreaking 4-week course designed to empower change-makers like you! 🚀 Are you passionate about making a difference but unsure how to leverage your resources for maximum impact? We've got you covered! Our series will unveil practical strategies on investing in the change you wish to see in the world. Here's a sneak peek at what we'll cover: ✨ Unlocking More Funding for Underrepresented Founders: Discover how you can support the growth of diverse and innovative leaders in the business world. ✨ Smart Investing with Donor-Advised Funds: Learn how to use your philanthropic dollars wisely, ensuring they contribute to causes you care about. ✨ Mastering Equity Crowdfunding: Dive into the world of equity crowdfunding and how it can be a powerful tool in your investment portfolio for fostering positive societal impact. Whether you’re a seasoned investor or just starting out, this course is tailored to equip you with the knowledge and tools to not only grow your wealth but also contribute to a more equitable and sustainable future. Spaces are limited, so make sure to reserve your spot today and begin your journey towards impactful investing! 💼🌍 Link to register in the comments Eli VelasquezShauna TurnerBarbara ClarkeSilvia Mah PhD, MBAAmy DuncanFaz Bashi #ImpactInvesting #SocialChange #EquityCrowdfunding #InclusiveFinance #Dogoodwhiledoingwell