Venture capital logic migrated into philanthropy through venture philanthropy and social entrepreneurship

Evidence

Various sources can be identified for this shift in the conception of social action. First of all, the emergence in 1990s California of ”venture philanthropy” among the nouveaux riches of Silicon Valley, who after their success from funding internet start-ups, thought they could apply the rules of venture capital to their philanthropic activities (Abeles 2002). At the same period and also in the United States, the concept of ”social entrepreneurship” was born, promoted by Ashoka, an NGO founded by a former consultant from McKinsey and co, and Harvard Business School. Social entrepreneurship is based on the premise that what social activities are lacking to achieve real efficiency is genuine entrepreneurs who will manage their activities with the same verve and the same methods as entrepreneurs in the for-profit world. These ideas then spread throughout the world, relayed by business schools in the 2000s, then investment banks since 2010. The worlds of donation and investment are hybridising. — Ève Chiapello, Financialisation of Valuation, 73

Categorization

• XREF: Connects directly to the reader’s financialization theme: how investor methods colonize non-profit action via Ashoka, HBS, EVPA. — connects to: Charitable donations and grants are being reframed as investments requiring measurable social returns — Ève Chiapello, Financialisation of Valuation, 69; Impact investing extends finance into the nonprofit sector — Ève Chiapello, Financialisation of Valuation, 72; Venture philanthropy reframes justice as enlightened self-interest for markets. — Max Haiven, Cultures of Financialization, 423 (+3 more)
• SEED: Angle for an essay on how ‘entrepreneurship’ became an unquestioned universal good that now legitimizes reshaping charity and public spending.

Related

• Philanthropy has been remade in the corporation’s image through venture philanthropy. (similarity 0.87)
• Charitable donations and grants are being reframed as investments requiring measurable social returns (similarity 0.83)
• Venture philanthropy reframes justice as enlightened self-interest for markets. (similarity 0.82)
• Impact investing extends finance into the nonprofit sector (similarity 0.82)

Broader Connections

• Philanthropy has been remade in the corporation’s image through venture philanthropy. #expands (0.95) — Max Haiven, Cultures of Financialization, 419
• Venture philanthropy reframes justice as enlightened self-interest for markets. #expands (0.85) — Max Haiven, Cultures of Financialization, 423
• Financial engineering is promoted as outsourcing social problems to entrepreneurs #expands (0.80) — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 963