Philanthropists Enter VC Game with Impact Investing
June 23, 2014
Endowments and foundations are typically thought of in the private equity and venture capital space as limited partners that provide the capital for firms to invest in companies, but that may be changing for some mission-focused organizations. In what is a relatively new approach taken by endowments, such as the Bill & Melinda Gates Foundation, “impact investing” involves using endowment money to directly finance private-sector companies that can advance their causes, while also potentially bringing profit back to the foundation for future investment.
Direct impact investing or “mission investing” has seen growth in recent years, despite the category’s relative infancy. And it’s the biggest organizations that are leading the way.
To learn more about impact investing and its trajectory in the VC space, click here.