A stage model of venture philanthropy

摘要

This paper explores the practices of venture philanthropy (VP). A stage model is developed from an inductive analysis of high net worth entrepreneurs who are engaged in VP. The study used a qualitative case study research strategy. Informant interviews were conducted with three main groups: the principal philanthropists, foundation philanthropy teams and leaders of investee organisations in receipt of funding. The findings suggest a model of VP with eight distinct stages including deal sourcing, relationship building, screening and information gathering, co-creation, early decision-making, circular reasoning, deal structuring, post-investment after care, disengagement and return. Comparisons with venture capital (VC), developmental VC and business angel investment are drawn and distinct similarities and differences are highlighted. This suggests that VP is a hybrid model that incorporates elements of all three types of approaches.