Are you innovating philanthropy as well as doing good for ventures? You are then "Venture Philanthropist"!
Simply put, Venture Philanthropist is the combination of Venture Capitalist and Philanthropist. Before the concept of “Impact investment” was born, John D.Rockefeller III defined Venture Philanthropy as an adventurous experiment that invests in social issues that are ignored. Since then, Rockefeller Foundation has been keeping an eye on social investments. Venture Philanthropy appeared from doubts about existing donation, that it is hard to solve social issues with simple fund.
While Impact investment seeks financial outcome and social, environmental achievement at the same time, defining them in a loose sense, Venture Philanthropy takes measures that are similar to how Venture Capitals invest in startups. SInce this means they invest in Social/Environmental organizations in their early stage bearing its high risk, it can be interpreted that they focus more on social, environmental outcomes or good will than impact investors do.
Venture Philanthropist considers financial investment as well as developing competency of the invested companies. Thus they provide leadership coaching, marketing project support, outcome measurement and such to the companies they are investing in. They are strategically utilizing the model of Venture Capital in measuring social impact. Although the donor or the investor involves for about three years from 5-7 years on average, there is no strict time regulation rule in the impact investment world.
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If you are “Venture Philanthropist”, you will draw a more specific picture through the following cases!
LGT Venture Philanthropy (LGTVP)
LGTVP invests mostly in the projects that enhance the life quality of the people living in LDCs. Princely Family of Liechtenstein devoted mostly to set up the fund. It alleviates the LDC population’s suffering and invests in organizations that increases access to education, therefore realizing sustainable life. Portfolio organizations are mostly consisted of South America, Africa, India, Southeast Asia, and China. Bridge International Academies(Kenya), Healthy Cities Group(Peru), Husk Power Systems(India), mothers2mothers(South Africa), and Rags2Riches(Philippines) are also included
Silicon Valley Social Venture Fund (SV2)
As Silicon Valley's concern for donation/charity increased, SV2 was made in the form of partnership by Laura Arrillaga-Andreessen in 1998. Each partner prepare the fund over three years and the cost ranges from hundred thousand won to hundred-fifty thousand won. The fund is given to various organizations that are working for education, health, environment, sustainability, international development and such areas. Since 2014, it is defining itself as impact investor, not as venture philanthropist.