Philanthropic Venture Capital: Venture Capital for Social Entrepreneurs?

77 Pages Posted: 29 Aug 2012

See all articles by Mariarosa Scarlata

Mariarosa Scarlata

University of Surrey - Surrey Business School; ESADE Business School; London School of Economics & Political Science (LSE); University of Newcastle - Business School

Luisa Alemany

ESADE Business School

Andrew Zacharakis

Babson College - Arthur M. Blank Center for Entrepreneurship

Date Written: 2012

Abstract

Since social entrepreneurship is a relatively young activity, resource-rich actors, like Philanthropic VCs, have considerable influence over how the space matures (Nicholls, 2010b). The resources and strategic advice that PhVCs provide their SEs shape an institutional logic for the domain. As such, PhVCs enhance legitimacy of the emerging area of social entrepreneurship. This monograph’s main contribution is to delineate the current state of PhVC, identifying differences with traditional VC financing, and identify areas of future research. In particular, this work responds to Nicholls (2010b) and Austin et al.’s (2006) call for research on what types of finance SEs have access to. More specifically, we focus on understanding what PhVC is and how its social value creation investment logic makes it different from traditional VC, opening avenues for future research in this area. We do not cover how PhVCs raise their funds as we are interested in the relationship between the philanthropic investor and the SE.

Keywords: venture capital, social entrepreneurship, philanthropic venture capital

JEL Classification: L26, G24

Suggested Citation

Scarlata, Mariarosa and Alemany, Luisa and Zacharakis, Andrew, Philanthropic Venture Capital: Venture Capital for Social Entrepreneurs? (2012). Foundations and Trends in Entrepreneurship Vol. 8, No. 4, 2012. Available at SSRN: https://ssrn.com/abstract=2137731

Mariarosa Scarlata (Contact Author)

University of Surrey - Surrey Business School ( email )

Guildford, Surrey GU2 8DN
United Kingdom

ESADE Business School ( email )

Av. de Pedralbes, 60-62
Barcelona, 08034
Spain

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

University of Newcastle - Business School ( email )

5 Barrack Road
Newcastle upon Tyne, NE1 4SE
United Kingdom

Luisa Alemany

ESADE Business School ( email )

Av. de Pedralbes, 60-62
Barcelona, 08034
Spain

Andrew Zacharakis

Babson College - Arthur M. Blank Center for Entrepreneurship ( email )

Babson Park, MA 02457-0310
United States

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