A guide to venture philanthropy for venture capital and private equity investors

Through examining case studies of private equity firms from several European countries, this publication explores three possible models of venture philanthropy engagement and provides examples of best practice. The PE industry is increasingly interested in becoming engaged in venture philanthropy activities. This paper identifies a number of motives for private equity firms to become involved in venture philanthropy, including the desire to give back to their communities, to help employees develop skills such as judgement, resilience and social competences, and establishing them as a positive social actor. The objective of this paper is to provide a practical guide for individuals and firms in the PE industry to get involved in VP. It could also be a useful resource for VP professionals and organisations seeking partners in the PE industry. The paper is a compilation of insights from numerous interviews and email questionnaires with executives from PE firms and VP organisations, as well as comprehensive desk research. The paper is structured in four parts. It begins with an introduction, including the purpose of the document, an overview of venture philanthropy, and how VC and PE are similar to, yet different from venture philanthropy. Then we go through each of the three models we have identified for firms engaging in VP, using examples of PE firms employing each strategy. Finally, we provide some general considerations for PE firms regarding getting involved in venture philanthropy before concluding the paper.