The Social Venture Philantrophy Fund（二）.docVIP

FREEDEM Fund USA Executive Summary A Proposal for Building a Bridge to Rapid Growth and Replication of Successful Nonprofit Enterprises Prepared by the Venture Catalysts of Claremont in preparation of a conference to be held on January 14-15, 2005, at the Peter F. Drucker/Masatoshi Ito Graduate School of Management on adapting the U.S. venture capital model of private equity investing to create a new intermediary to finance income-producing ventures of nonprofit organizations. OPPORTUNITY AND VISION There is an opportunity to establish a new social venture enterprise that combines the best features and practices of philanthropy and private equity investing to create a powerful new financial tool for the economic growth and sustainability of the U.S. nonprofit sector. This new American social enterprise is being called the Fund for the Rapid Entrepreneurial and Economic Development of Emerging Markets (FREEDEM), where the term “emerging markets” is meant to mean nontraditional areas for U.S.-style venture capital investing. FREEDEM Fund USA is one of a family of community-enhancing investment funds being investigated and designed under the auspices of the Venture Finance Institute of the Claremont Graduate University to apply the principles and practices of U.S.-style private equity investing to social venture initiatives, and, in this specific instance, to meeting the financial growth needs of U.S. nonprofit organizations. It represents a natural outgrowth of a growing concern on the part of nonprofit organizations in enterprise activity that is firmly rooted in the realities of financing nonprofit work today. These realities include the need for increased revenue to cover shortfalls in public sector support, the desire for more stable and predictable revenue streams, a quest for efficiency in operations, and the goal to initiate and maintain control over socially-motivated enterprises to create employment and economic activity in communities suffering from d