We believe that category-defining companies of the future will be largely “mission driven” with societal impact as a core pillar of company culture. Our mission is to catalyze societal impact for venture backed companies and to bridge the divide between catalytic philanthropy and the innovation economy.
Rise Together Ventures is a next generation venture franchise that is pioneering a novel and integrated approach to venture philanthropy and venture capital investing. We invest in high-growth, for-profit companies led by mission-driven founders; and we empower these entrepreneurs to catalyze social impact within the culture of their companies by providing them with philanthropic capital in parallel with an equity investment (which we call “Philanthropic Mirroring”).
We began testing our model in mid 2021 and to date, our novel investment strategy has earned us allocations in oversubscribed financings where we have invested alongside top-tier firms such as a16z, Founders Fund, Softbank, Summit Partners, Shasta Ventures, and MSD Capital. We have found that both founders and investors are willing to carve out allocations for us based on the strategic value and social capital that comes with our Philanthropic Mirroring capability (see end of document for two recent examples).
The vision for Rise Together Ventures, and our Philanthropic Mirroring framework, was born out of the unique perspective and backgrounds of our two founding GPs. Both partners have had significant experience in philanthropy, venture capital, and startup operations. On the venture capital front, we have built thematically focused venture funds, invested in venture funds, founded companies, and have played operating roles in venture backed companies. Collectively, we manage a portfolio of 60+ direct investments and 10+ LP positions. On the philanthropic front, we have managed family foundations, served on non-profit boards, founded a non-profit and foundation, and are active partners in some of the largest and most innovative global philanthropic communities.
We are positioned at the intersection of a number of converging trends and we are prioritizing partnership in an effort to capture and scale social and financial alpha.
- We are entering a new period of innovation with respect to the structure and composition of venture capital, where new entrants and novel capital models are starting to disrupt the innovation landscape.
- There is a generational shift of both private and institutional investors who are seeking to engage in some form of ‘impact’ investing, while simultaneously searching for philanthropic strategies that can replicate the discipline, innovation and impact of their investment strategies. In short, the for-profit and nonprofit capital markets are converging.
- There is a growing demand for companies of all sizes and stages, not just corporations, to give back to society and refine their approach to Corporate Social Responsibility. Beyond the demands of public perception, enterprises are being challenged to attract a new generation of talent that is demanding meaningful work, with purpose beyond themselves.
Our commitment to bridge the gap between catalytic philanthropy and venture capital is driven by our belief that capitalistic innovation is the most powerful engine for mutual benefit and societal impact, and we seek to champion the idea that “doing well by doing good” is the best approach to value creation. Rise Together Ventures will connect, and mutually leverage, for-profit and nonprofit pools of capital - with the ultimate goal of creating outsized financial and social returns.
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FAQ with commonly asked questions regarding the Philanthropic Mirroring concept:
What is a Philanthropic Mirror (PM)?
A Philanthropic Mirror is a pool of philanthropic capital that is allocated alongside an equity investment in a for-profit company and strategically and collaboratively deployed on behalf of said company.
What is the purpose of a Philanthropic Mirror?
The purpose of a Philanthropic Mirror is to amplify the social impact initiatives and capabilities of a for-profit company by leveraging the power of catalytic philanthropy and its ability to strengthen corporate culture and social impact.
What can I use my Philanthropic Mirroring budget for (and what can I not)?
The PM budget needs to be deployed in collaboration with a public charity or foundation and is most strategically valuable when deployed in strategic or thematic alignment with the company’s mission. We work alongside our portfolio companies to decide the best use of the philanthropic capital and we can get creative on how to deliver the best outcome. In some cases, it will be a donation to a mission-aligned nonprofit; in other cases, it will be a bespoke in-house initiative that we co-create.
Do you take equity from the company from this philanthropic investment?
We take equity in exchange for the investment from our venture fund, however the philanthropic capital is deployed separately and does not impact the balance sheet or cap table of the company.
Is there a timeline for when a company needs to utilize my Philanthropic Mirroring budget?
No. It is evergreen, and many companies will in fact not want to deploy it right away.
When is the best time to use the Philanthropic Mirroring budget?
It varies by company; some companies may deploy it in association with an upcoming fundraise announcement, and others may deploy it in conjunction with a marketing campaign, while others may deploy it as part of a new product or service launch.
Do I need to use my whole budget for only one impact initiative, or can I fund multiple initiatives?
You can use it for multiple initiatives, and at different times.
How much time does a founder or company need to dedicate to deploying the PM budget?
We aim to keep the time commitment to a minimum, and engage the company/founders as much or as little as they desire. We have a vast network in philanthropy and broad experience with non-profits, so we can offer close guidance throughout our entire relationship.
What are some examples of Philanthropic Mirroring that you’ve completed with other portfolio companies?
- Example 1: Formative. Series A investment in a for-profit edtech company; philanthropic mirror is building and seeding a teacher fast-grant program for their teacher community to empower these educators to continue to innovate in the classroom.
- Example 2: Flexport. Series E investment in a for-profit digital logistics company; philanthropic mirror is a donation to a foundation that delivers aid to disaster areas as well as helps companies limit their carbon emissions.
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Contact Info:
Kasey Lundquist Reiter, General Partner, Rise Together Ventures
Taylor Adams, General Partner, Rise Together Ventures
