How to Land a Meeting With a Venture Philanthropist

Are you looking to get more funding for you Nonprofit Organization? Maybe landing a large donation from a Venture Philanthropist is the way to go. Let’s explore.

Over the last decade, the nonprofit landscape has shifted, with venture philanthropy playing an important role in nonprofit growth. Venture philanthropy is a practice where donors consider their donations as tactical investments, and it’s become more common partially due to declining funds from traditional sources.

Today, venture capitalists want to play bigger roles in their philanthropic commitments and expect more impactful results from their financial gifts. Private equity and philanthropy are colliding in unprecedented ways, and donors are increasingly taking a venture philanthropy approach to their donations.

Still, the term “venture philanthropy” feels like an oxymoron to many. But in short, venture philanthropy is all about cultivating philanthropic assets. For example, an investor might donate to an environmental protection non-profit for its socially responsible approach to ecological reform. In this case, the non-profit the investor is donating to shares similar values to the investor’s personal values and the values shared across companies in their portfolio. In this case, the term “venture” or “investment” is really referring to the impact that the non-profit will have in the world.

As a non-profit, one your primary goals is to spearhead fundraising initiatives that allow you to continue operating. And although venture philanthropy is gaining momentum, it’s still difficult to find the right investor who is willing to donate. Here are a few tips to help you achieve this:

Think Transformational vs. Transactional

When talking about venture philanthropy, the term “donor” and “investor” is often used interchangeably, but there are some key differences. Traditional donors provide funding to nonprofits who can demonstrate a need for its existence and can demonstrate results from its efforts. Investors, on the other hand, are more focused on outcomes that are meaningful, effective, and relevant to their personal social missions.

Because of this, as you begin looking for the right investor, it’s important that you take a transformational approach to your pitch instead of a transactional approach. Investors want to know how funding will improve the actual situation (not whether there is a need to improve the situation). Investors are concerned about contributing to a non-profit that has the capability to create a real, demonstrable change. This is how they regain the value from their investment.

Start Shortlisting Investors

Once you understand the approach you’ll need to take, it’s time to start your due diligence process and search for the right investors. AngelList is a good place to start. Don’t be discouraged by the lack of investors who openly communicate their interest in working with nonprofits. Most investors don’t advertise this at all.

Instead, reverse engineer the process by searching for investors who have invested in companies whose products and services align with your mission. This way, you already understand that your mission contributes to their portfolio in some way. For each potential investor, ask yourself these questions:

Is there evidence that this investor identifies with your organization (interviews, previous donations, etc)?
How might this investor derive a “return” from donating to your nonprofit company?
Has this investor invested in companies that provide products or services that complement your nonprofit?

After you’ve shortlisted a few investors, dig a little deeper into their history and learn about previous companies they may have donated to or sponsored. Make a note of these companies and continue building out your “potential investors” list until you have 10-20 viable options.

Start Building Buzz

There are many ways to fundraise nonprofit companies. In your early stages, you’ll likely explore those options before you meet with investors. These funding initiates include sponsorship deals, fundraising letters, fundraising events and campaigns, and donation pages.

Use those funds to start brainstorming how to build buzz through traditional and guerilla marketing tactics. The premise is three-fold; you’ll generate more donations (you might even end up with a viral campaign), you’ll attract potential investors, and you’ll have something to tell investors you pitch to.

Get your team together and start thinking about how you can generate buzz. Not convinced? There are dozens of nonprofits that have used marketing strategies to grow their communities and get more donations. Read: the ALS Foundation ice bucket challenge. Contests are another great way to get the word going.

Be sure to share your results through blog posts, email newsletters, press releases, and media outreach.

Start Pitching

Once you feel confident in the list of investors you’ve shortlisted, you can start creating custom pitches for each of them. By now, you should have identified several factors that make them a good candidate for a donation. Incorporate these factors into your pitch.

You should also be prepared with a business plan. Although it might take a while to hear back from an investor, you never know how quickly the process can happen. And any investor will need to see a detailed business plan before they make any official decisions. Consider using a non profit business plan template to help you get started.

Your pitch should be concise and captivating. Avoid long emails and lengthy paragraphs. Use this checklist to ensure your pitch meets the right criteria:

Includes 2-3 sentence introduction
Includes a request to meet with them for a potential donation
Includes 2-4 sentences of why you think a partnership will be mutually beneficial (i.e., “I noticed that you’ve invested in Solar Startup A and Clean Water Startup B…”)
Lists your main accomplishments (preferably in bullet point format)
Ends with a one-sentence call to action and encourages them to offer any advice they might have if they aren’t interested in meeting
Includes a short pitch deck or presentation as an attachment

Investors are accustomed to getting emails from startup companies and business owners daily. Stay true to yourself and refrain from pitching like a salesman trying to meet a quota. Humanity, humility, and genuinity are difficult to find in pitches to investors, and they’ll appreciate your commitment to your cause. A good pitch will, at the very least, result in kind words of advice or a recommendation to another investor.

FAQ

What is a venture philanthropist?

A venture philanthropist is an individual or organization that invests in charitable projects or social enterprises with a focus on achieving social impact alongside financial returns.

How can I prepare for a meeting with a venture philanthropist?

Prepare by thoroughly researching the philanthropist’s interests and past investments, understanding their goals, and developing a clear and compelling presentation of your project or idea that aligns with their interests.

What are key strategies to get a venture philanthropist’s attention?

Key strategies include networking in relevant social and professional circles, attending industry events, engaging on social media platforms where they are active, and getting introductions from mutual connections.

What should be included in a pitch to a venture philanthropist?

Your pitch should include a clear description of your project or enterprise, its social impact, how it aligns with the philanthropist’s interests, a business model or plan, and evidence of potential for success or progress made so far.

How important is the social impact of my project when meeting with a venture philanthropist?

The social impact is crucial, as venture philanthropists are particularly interested in projects that offer tangible and significant social or environmental benefits along with financial viability.

What is the best way to reach out to a venture philanthropist for a meeting?

Reach out through a personalized email or message, a referral from a mutual contact, or by making a connection at an event. Ensure your initial communication is concise, professional, and highlights the mutual benefit of a meeting.

How can I demonstrate the sustainability of my project to a venture philanthropist?

Demonstrate sustainability by presenting a solid business plan that includes market analysis, revenue models, long-term goals, and strategies for scalability and ongoing impact.

What common mistakes should be avoided when trying to meet with a venture philanthropist?

Avoid being overly aggressive in your approach, presenting unrealistic goals or vague ideas, lacking a clear understanding of the philanthropist’s interests, and underestimating the importance of a well-prepared presentation.

How can I align my project’s goals with a venture philanthropist’s mission?

Understand the philanthropist’s mission and objectives, and clearly articulate how your project aligns with these goals, emphasizing shared values and the potential for joint impact.

What type of due diligence should I expect from a venture philanthropist?

Expect thorough due diligence, including a review of your business plan, financials, impact metrics, management team, and possibly site visits or interviews with your team and beneficiaries.

How can I effectively communicate the scalability of my project?

Communicate scalability by presenting data and projections that demonstrate the potential for growth, discussing your expansion strategy, and showing an understanding of the challenges and solutions for scaling up.

What financial information should I prepare for a meeting with a venture philanthropist?

Prepare detailed financial information including current financial statements, funding needs, projected revenues, budget breakdowns, and how funds will be utilized to achieve both social impact and financial sustainability.

How can I leverage online platforms to connect with venture philanthropists?

Leverage online platforms by building a strong presence on professional networking sites, participating in relevant online forums, and engaging with content posted by venture philanthropists or related organizations.

What is the importance of a strong team in securing a meeting with a venture philanthropist?

A strong team is crucial as venture philanthropists often invest in people as much as in ideas. Highlight the experience, skills, and commitment of your team members in your presentation.

How should I handle feedback or criticism from a venture philanthropist during a meeting?

Handle feedback constructively by listening carefully, showing openness to suggestions, and being prepared to discuss how you might address any concerns or adapt your project based on their input.

What role does impact measurement play in discussions with venture philanthropists?

Impact measurement is key in these discussions. Be prepared to share how you measure social impact, the outcomes achieved so far, and how continued or increased funding will enhance this impact.

Can mentorship or guidance be a part of what I seek from a venture philanthropist?

Yes, apart from funding, you can seek mentorship or guidance. Many venture philanthropists offer valuable insights, industry connections, and strategic advice that can be as beneficial as financial support.

How important is the uniqueness of my project in attracting venture philanthropy?

Uniqueness is important as venture philanthropists are often looking for innovative solutions to social problems. Highlight what sets your project apart and how it addresses unmet needs or gaps in existing solutions.

How can I follow up after an initial meeting with a venture philanthropist?

Follow up with a thank you note expressing your appreciation for their time, reiterating your key points, and suggesting a next step or further meeting if they showed interest.

What role does storytelling play in a meeting with a venture philanthropist?

Storytelling plays a significant role in creating an emotional connection and illustrating the real-world impact of your project, making your proposal more compelling and memorable.

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