Founders Pledge, the London-based charity programme to encourage tech leaders to donate proceeds, has created a venture capital (VC) initiative to drive investment and donations.
The investment project, called Pledge Ventures, will invest in high-growth tech startups with founders who are prepared to support the pledge’s charitable goals.
Founders Pledge has company leaders – including those behind Klarna, SoundCloud, and Snyk – commit a minimum of 2% of any exit to charity.
The VC project will aim to secure a profitable return for investors as well as provide more funds for the Founders Pledge’s charitable works.
Ben Gammon, managing director of Pledge Ventures said: “The enthusiasm for the concept has been overwhelming. Exceeding our target raise in the current environment is a testament to the belief that our LPs have in Pledge Ventures’ innovative approach and the Founders Pledge community’s commitment to driving positive change.”
Under the structure of the investment, 85% of carried interest and up to 50% of management fees will be donated to scale the impact of the group.
The VC will target late-stage rounds to ensure a decent share will go to charity. Pledge Ventures will look at firms raising rounds of $20m or more at Series B or later stages.
Pledge Ventures has already closed $38m (£30.7m) for its first fund and it plans to close further rounds later down the line.
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