Aside from an impact investing opportunity (think green, education, ‘the greater good’), you’d be forgiven for not associating startup investing with social responsibility.
Actually, there is plenty of room for helping the non-profit world in startup investing. Tmura, the Israeli public service venture fund, is one example – enabling founders to do good while making their exits.
Since 2013, every new OurCrowd portfolio company has been required to dedicate a portion of their equity to charity, through Tmura. At exit, Tmura sells its shares, and donates the proceeds to the high-tech company’s preferred charity, focused on educational and youth-related activities.
OurCrowd has long made its social responsibility a priority, believing that the startup sector can give back to society. OurCrowd was the first VC to require its Israeli companies to commit equity as part of the deal terms. Seeking investments with OurCrowd is synonymous with adopting a charitable aspect to each startup.
This quarter alone, three companies, Scopio Labs, BrainQ and Splacer all joined Tmura. The program is especially appealing because it ties charitable giving to the success of the company. If the company does not see an exit, it does not lose money, but if it is very successful, the potential for donating is great.
Laly David, Business Development Partner at OurCrowd, is pleased with the company’s role in the program, saying, “It is a great initiative. We are proud to be one of the most significant sources of funding for Tmura.”
Beneficiaries of Tmura’s program include Krembo Wings, the only local and inclusive youth movement for children and youth with severe disabilities; SAHI Special Hessed unit which combines food distribution with the opportunity for youth to give back to their communities while developing role models; and more, including enhanced technological access and training to underserved populations among others.