Commentary

Bringing entrepreneurship and philanthropy together for young people

Entrepreneurs can be powerful drivers of change. They develop new ideas, products and services, create jobs and economic opportunities, and can find new ways of responding to social and environmental challenges. For Fondation Botnar, entrepreneurship also has a particular significance. The Foundation is rooted in Octav Botnar’s own entrepreneurial journey. This legacy continues to influence how we work today, encouraging us to take initiative, embrace responsible risk and break new ground in pursuit of lasting change for young people.

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What we mean by venture philanthropy

Venture philanthropy brings this entrepreneurial mindset into our philanthropic work. It allows us to combine financing with other forms of support to back new solutions, strengthen capabilities and help create the conditions in which entrepreneurship can thrive.

Our venture philanthropy investments focus on early-stage companies with the potential to create social or environmental impact. Financial return is not the primary objective. We are prepared to take risks where our involvement can make a meaningful difference, particularly where ventures struggle to access the financing and support they need to develop and grow.

At Fondation Botnar, venture philanthropy is therefore about more than investing in individual companies. It is a way of using our philanthropic resources to support entrepreneurship and open new possibilities for young people.

Connecting venture philanthropy with our wider work

Our work is increasingly organised around locally rooted ecosystems in selected cities and countries. Our programmes bring together young people, civil society, public institutions, researchers, businesses and other actors around challenges and opportunities affecting young people. Entrepreneurs and investors are an important part of these local ecosystems too.

Connecting venture philanthropy with our wider work allows different forms of support to reinforce one another. Investment can complement grants, research, policy engagement and other forms of support, while entrepreneurs can bring new ideas, solutions and perspectives into the wider ecosystem. In this way, venture philanthropy becomes part of our broader effort to strengthen local ecosystems and contribute to lasting change.

Three pillars of venture philanthropy

Our approach is built on three interconnected pillars: investments, capacity building and ecosystem building.

Investments: We invest in early-stage companies with viable business models and the potential to create measurable social or environmental impact. We may continue to invest as companies develop, while remaining a minority shareholder. We aim to use our financing catalytically, stepping in where access to capital is limited and where our involvement can help promising ventures develop and attract further investment.

Capacity building: Funding alone is not always enough. We support companies in developing the capabilities they need to grow sustainably and increase their impact. Depending on their needs, this can include financial management, governance, business strategy, ESG and impact management.

Ecosystem building: Entrepreneurs do not operate in isolation. Their ability to succeed also depends on the environment around them, including access to capital, skills, networks, institutions and opportunities for collaboration. We therefore support activities that strengthen entrepreneurial ecosystems, for example by connecting entrepreneurs and investors, supporting accelerators and venture-building initiatives, and helping address gaps that hold promising ventures back.

Within our wider portfolio approach, venture philanthropy brings a particular focus on economic empowerment, financial inclusion and decent work, while connecting with our work across urban and digital contexts. Climate change is an additional focus, reflecting its growing impact on young people and the potential for entrepreneurial solutions.

Through venture philanthropy, we bring entrepreneurship and philanthropy together to help new ideas and businesses grow and create opportunities for young people.