Venture Capital/Debt

Venture Capital: capital invested in a project in which there is a substantial element of risk, typically a new or expanding business.

Core Attributes:

  • Angel Investment
  • Seed Capital
  • Venture Capital

The third method by which we increase the social impact we have through scale is by venture capital. Venture capital provides a financial and expertise input enabling a faster realisation of an enterprise growing in social and fiscal impact. We see this type of funding and support as significantly more powerful and impactful than donor raised capital, the reason being because of the ‘dumb money’ versus ‘smart money’ argument. Donor’s gain their returns in terms of personal fulfillment at the point of providing the capital into the hands of the NFP they have chosen to support. Not in all cases, but in most cases the donor will not follow up with how the money was utilised or take any active interest in the organisation realising it’s stated objectives- this is dumb money. Smart money, on the other hand, has not just capital but also expertise and connections that come with it and a vested interest from the Venture Capitalist in gaining a return, which is both financial and social, at the point of realisation of the business model. For this reason, Project Everest sees venture capital as an expedient way to realise our purpose but also, validation of the business model built to this point.