VC for a not for profit company?
Quick question for the monkeys out there. Me and some ivy league friends are starting up a not for profit business. We're planning on running this business for the foreseeable future. Anyway, the question is, if this company becomes big enough (let's say about a tenth of the size of Teach for America) would it be possible to secure more funds via venture capital?
I know that venture capital inherently is used for for profit companies, but are there any organizations, people, firms, etc that would be interested in providing capital (for all intents and purposes, donating) to such a company theoretically?
Thanks guys.
It wouldn't be venture capital. A VC investment would require them to take an equity position (with hope of a big return), which wouldn't make sense for a non-profit. So VC isn't the right way to describe it at all.
That being said, there's a lot of funding options. Other than your own fundraising efforts, there's U.S. government grants as well as grants through organizations like the Gates Foundation. You could also go after partnerships with companies that are into CSR or get a fraternity/sorority to adopt you as their philanthropy. All of this depends on what exactly your non-profit will be doing. There's a ton of stuff on other sites about raising money for non-profits, and your university probably has some knowledgeable people.
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