Giving Compass’ Take:
• In this podcast via Airbel Center, Alix Zwane, the CEO Of Global Innovation Fund, discusses how the lessons from venture capital can help nonprofits and foundations drive social change.
• Patience and risk are both factors to consider in impact investments, according to Zwane. Can philanthropy make adjustments in this changing world?
The scale of social and environmental problems facing the world today is beyond the scope of any government budget. Every year, there’s a $2.5 trillion funding shortfall in achieving the Sustainable Development Goals, which are benchmarks of global need. Funding crises are particularly acute in fragile states, where governments struggle to raise revenue and the outflow of illicit capital — in the form of gun running, the drug trade, and money laundering — is nearly double the amount of foreign direct investment.
It’s in those situations, says Alix Zwane, that social impact investing can do things that traditional aid and investment can’t. Zwane is the first CEO of Global Innovation Fund, a partnership for international impact investing launched by Australia, Sweden, the US, the UK and the Omidyar Network. GIF wields a $200 million endowment it uses to provide early stage capital to innovative ideas tackling global poverty. The fund is a touchstone of a generational shift in a sector focused increasingly on borrowing tools and language from the realm of venture capital.
Listen to the full podcast featuring Alix Zwane on what philanthropists can learn from venture capitalists by Airbel Center at medium.com.
Since you are interested in Venture Philanthropy, have you read these selections from Giving Compass related to impact giving and Venture Philanthropy?
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