Comment on On Philanthropy: Philanthropy is the ultimate “risk capital”

On Philanthropy: Philanthropy is the ultimate “risk capital”

The definition of “risk capital” varies greatly depending on context. In the world of private equity, risk capital refers to the funds used for speculative, high-risk, high-reward investments. Depending on the success of the investment, it can either earn spectacular returns or dwindle to a fraction of the initial amount. In the charitable world, venture philanthropy applies the same concepts of high risks and high rewards to social (rather than financial) returns on investment.

 

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