Founders Pledge launches VC arm, Pledge Ventures, to create new flywheel in philanthropy

News Summary

  • In other words, creating a fly-wheel effect.The first close stands at $38 million and they plan to close further rounds.The fund will aim to drive returns for investors while, at the same time, supporting the nonprofit mission of Founders Pledge.
  • So we’re gonna invest in very, very hot rounds where the returns accrue to charity.In a statement, Pledge Ventures Managing Director (pictured above, middle) Ben Gammon, said: “The enthusiasm for the concept has been overwhelming.
  • We can participate in these very hot, very oversubscribed rounds that are inaccessible to everyone else, because of the alignment that the fund has with the key decision maker of the company.
  • We invest in every Founders Pledge signatory that’s raising 20 million or more in a Series B or later with a top-tier VC participating.
  • Investing in them gives us a share of their upside and ensures the long term success of Founders Pledge.
  • Here’s how it will operate: It will donate 85% of carried interest and up to 50% of management fees to the charity.
Founders Pledge is a Londonbased charitable initiative, where entrepreneurs enter a legally binding commitment to donate a portion of their personal proceeds on liquidity to charity when they exit. [+3904 chars]