Investing in Innovation: Current Approaches for Non-Profits and Venture Philanthropists

With less government grant money available and increased competition for traditional venture capital funding, non-profit organizations are looking for alternative approaches and new sources of funding for innovation activities. Non-profits are also increasingly pressured by philanthropic organizations and individual donors to not only generate a quantifiable impact, but also to share a portion of resulting proceeds with grant providers. At the same time, other investors are seeking new ways to direct capital to fund innovation while generating market returns.

of Ropes & Gray attorneys as we explore a range of approaches non-profits, philanthropists, and investors have used to fund innovation activities and highlight key legal implications of these approaches, including: 

• For-profit and tax-exempt development subsidiaries 
• Research collaboration agreements and joint ventures 
• Investment and venture funds 
• Incubators and accelerators