Why Venture Capitalists Should Invest in Nonprofits

What would the world look like if we all invested much more in nonprofits that create measurable positive change in the world? What if the sought-after return on investment was access to critical services, social and emotional skills, or a ready workforce, rather than solely financial returns?

This is the mindset of venture philanthropists, who invest not only their money but their time and expertise to help social-purpose organizations maximize their community impact.

Venture philanthropy is about more than just investing dollars. “In the VC [venture capital] world, when startups receive investment dollars, they also gain access to a network of support, the expertise of senior leaders in the sector, and a framework for how to scale their business with best practices for capital allocation, operations, marketing, and other areas,” states venture capitalist Peter Levine. At SVP Portland, we give general operating grants, but more importantly, we give our community partners multi-year support in the form of pro-bono skilled volunteer time. 

“In my work as a venture capitalist,” says Peter, “I often look at smaller businesses that have an excellent proof of concept and see the opportunity to provide entrepreneurs with the funding to scale at a rate they wouldn’t be capable of on their own. Nonprofits usually have a longer runway, needing to establish a track record of long-term success before they gain access to any kind of large-scale institutional investment.”

SVP’s unique and proven relational model eliminates barriers to support by partnering with (often new) organizations. We work alongside these organizations to help them scale their impact, by advising on strategic planning, business modeling, marketing strategies, operations, board governance, financial sustainability, and leadership development. Our network of 130 business professionals contribute their skills pro bono because they want to invest in our community and work toward greater equity in early learning. 

In the past 10 years, we’ve contributed more than 35,000 volunteer hours of professional expertise to match the needs of our partner organizations. That is more than $3.5M worth of pro-bono professional support! As a result, organizations are able to focus their raised dollars on programs that directly serve children. For example, since our partnership began three years ago, the Center for African Immigrants and Refugee Organization (CAIRO) has increased the number of children in its preschool by 75%, and now has the foundation to grow an additional 250% in 2023.

Venture philanthropy is more than just writing checks, it is using your skills and resources to make a difference that counts. Consider joining our partnership of professionals if you, too, want to make a transformative impact in our community!