<aside> 🤓 TL;DR We are working on a new, structural funding approach to solve the societal problems around us - and we need money to buidl that!

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Problem 😣

• Growing societal challenges (inequality, poverty, climate change, social crises... you name it)
• Fucked up funding problem of non-profits and impact oriented organisations who try to solve exactly these challenges
  • To keep it short: Think of submitting countless elaborate project applications to various foundations just to (if any) only receive project-specific money with no freedom in the use of funds; therefore lack of planning reliability; no way to pay your employees properly; no ability to make mistakes, which are so important for identifying promising solutions, and so on. In summary: There is no unrestricted money willing to take risks in the sector, hence there is no proper base for problem-solving.

Solution 🤞

• We built the Impact Share (= Wirkungsanteil). It’s a virtual share in a startup of at least 1% that works just like an ESOP - an equity pledge for impact. In the event of an exit the proceeds from this share flow into social causes. (Okay and? Our vision is becoming kind of like a social VC - more on that below)
• Why startups/founders? They understand what it means to work on wild, ambitious visions, to screw up frequently and to handle invested money with their own responsibility. And: Low effort for a founder - high leverage and potential for our society.
• Note: Societal problems can also be solved by a startup, sure. When we talk about startups, we are referring to the exit-oriented, high-scaling ones.

Roadmap 🗺️

• Already accomplished

  • Legal work for the impact pledge model, including approvement by German tax and financial authorities (🥵) → “steuerabzugsfähige Spende”
  • First 10+ startups signed the binding equity pledge
  • First corporate partners: Osborne Clarke (leading VC legal firm) and EY Germany (one of the big four consultancies)
  • However, obtaining meaningful amounts of funding from traditional corporations and foundations for our own structures and for disruptive social causes is very challenging. We have tried repeatedly (oh we did..!) - it won’t get us there in a reasonable time.

• Doing

  • Creating more awareness and buzz around the Impact Share, to motivate founders to join the movement
  • Buidling partnerships with multiple stakeholders in the startup ecosystem
  • Step by step becoming an opinion leader on the topic of new funding structures for social innovations
  • But we need funding to invest in our own business structures.
    • To research, develop and elaborate our future giving concept and to activate more founders to join the Impact Share
    • Therefore we have to pay ourselves/hire employees (= capacity building)
    • Financial Need (🤑): 250.000 EUR p.a. (btw we will be self-sufficient after the first couple of exits.)

• Vision

  → We want to catalyse Social Innovations

  We think of it as becoming kind of like a VC for Social Impact - having social return on investment as our capital maximising goal

  

  Structural, unrestricted and smart funding as the new standard for social causes → enabling instead of restrictions and control