Examples of Social Ventures that Have Secured Traditional VC Funding

Entrepreneurship is not just about financial gain; it can also be a powerful tool for social change. Many social ventures are recipients of funding from traditional venture capital (VC) firms, known as impact investments. These companies leverage private capital to achieve both financial returns and social impact. In this article, we explore several examples of social ventures that have successfully secured funding from traditional VC firms.

Examples of Social Ventures Securing Traditional VC Funding

Many social enterprises have managed to capture the attention of traditional VC firms, leading to significant funding. Here are some notable examples:

Warby Parker

Warby Parker: This eyewear company stands out for its innovative business model and social mission. Warby Parker raised its initial seed capital from notable VC firms like Founders Fund, well-known for investing in transformative startups. Warby Parker has since grown to include various lines of eyewear and has continued to attract additional funding from prominent VC firms such as NEA, SV Angel, and First Round Capital. Menlo Ventures also provided backing, making Warby Parker a formidable player in both the eyewear and social impact sectors.

Better World Books

Better World Books: This company is dedicated to sustainability and literacy. It originally raised $4.5 million in funding from Good Capital, a VC firm that focuses on creating positive social and environmental impacts. Better World Books’ mission to convert discarded books into a new form of publishing and reselling is a prime example of the alignment between financial success and social responsibility.

Coursera

Coursera: This platform revolutionized online education by connecting learners to courses from top universities. Coursera secured significant funding from traditional VC firms like Kleiner Perkins (KP) and NEA. With this investment, Coursera was able to expand its offerings and reach an even wider audience, contributing to the democratization of education and creating opportunities for people around the globe.

Husk Power Systems and Sarvajal Piramal Water

Husk Power Systems: This company focuses on clean energy solutions, specifically on biogas from rice husks. It has received funding from DFJ, a prominent venture capital firm. By utilizing renewable resources, Husk Power Systems is addressing energy poverty in rural communities while providing affordable energy solutions.

Sarvajal Piramal Water: Another impactful social venture is Sarvajal Piramal Water, which provides clean water to underserved areas using a model of water kiosks and water purification plants. Despite being in the water purification sector, which is not typically seen as a tech investment, Sarvajal has managed to secure funding from DFJ. This investment highlights the growing interest in solutions that combine social impact with traditional venture capital.

Conclusion

The examples of Warby Parker, Better World Books, Coursera, Husk Power Systems, and Sarvajal Piramal Water demonstrate that social ventures can indeed attract the interest of traditional VC firms. These companies have managed to merge their social missions with innovative business models, attracting significant capital from leading VC firms. As the landscape of impact investing continues to evolve, we can expect to see more social ventures securing funding and making a difference in the world.