Here’s a new kind of venture capital, funded by donations more than by investors, looking to spur development in economically challenged areas.
I heard about it yesterday in The New York Times‘ Shifting Careers feature, headlined Venture Financing With a Mission Beyond Profit. Here’s a bit of it:
“But unlike a venture firm, Jumpstart relies on charitable donations, many of them from the private sector, for its financing and does not return a share of profits to those who provide the investment dollars. The return comes as satisfaction for elevating a region’s economic standing.
It’s an interesting new idea. The story features one organization called Jumpstart in Cleveland and cites several others.
Tim Berry is the founder and chairman of Palo Alto Software and Bplans.com. Follow him on Twitter @Timberry.
