IS EC THE SAME AS VENTURE CAPITAL?
No, but there is some overlap. Venture philanthropy generally means application of concepts from venture capital investing to philanthropy—typically a highly engaged, long-term, and results-oriented approach to funding.
Enterprise capital shares venture philanthropy’s interest in applying financial best practices to nonprofit capital markets. Like venture philanthropy, enterprise capital requires a long-term view and the willingness to provide nonfinancial support alongside grants or investments. Despite some distinctions, both approaches share the conviction that a long-term approach to funding—alongside intentional investment in human capital—can unlock the nonprofit sector’s full potential.