Entrepreneurs Foundation & NVCA Promote CORPORATE CITIZENSHIP
NVCA Today Newsleeter
Q3, 2005

Entrepreneurs Foundation (EF) and the National Venture Capital Association (NVCA) recently formed a partnership to promote corporate citizenship at venture capital firms and the emerging companies in which they invest. Together, the organizations will work to engage venture capitalists and their venture-backed companies in philanthropic and corporate community involvement efforts.HP, Cisco,Adobe and other large, successful companies have realized the important value of their corporate citizenship programs; by working with EF, private companies can now easily do the same. Over 60 VC firms are also engaged with EF including partners from the following firms: Apax Patners, Austin Ventures, NEA, Sevin Rosen, Trinity Ventures, 3i and Mayfield.

Both EF and the NVCA embrace the concept that winning companies not only provide strong returns to shareholders but also share their successes with their communities and employees. The partnership seeks to further raise awareness of EF and increase participation among NVCA members.

What is Entrepreneurs Foundation?

EF is a non-profit organization that engages venture-backed companies in corporate citizenship and philanthropic efforts so that new resources are generated for community benefit. EF assists private companies in the formation of philanthropic foundations through equity donations and EF assists companies by engaging their employees in community benefit programs. EF works with emerging companies to develop a culture of community support. Recognizing the time and resource constraints typical of young companies, EF assists companies with the implementation of community involvement activities, matching their corporate culture and philanthropic interests with the most appropriate local community organizations. For more information about EF, please visit www.efbayarea.org.

How many companies are currently involved with EF?

Over 400 companies have joined EF since the organization's inception in 1998. There are currently 8 affiliated branches of EF with locations in Atlanta, Austin, Boston, Dallas, Honolulu, Portland, Silicon Valley, and Tel Aviv.

How do companies engage with EF?

Pre-public companies join EF by making an equity grant earmarked to support both EF and to create a philanthropic community foundation for charitable donations. EF then works closely with each portfolio company to develop and implement community benefit programs most appropriate for its particular stage of development. Successful community involvement programs generally include employee volunteerism, corporate giving, and corporate citizenship best practices. When a liquidity event for the private company occurs, proceeds of the equity grant are available for charitable distribution as advised by the company. To date, over $4 million has been distributed to charitable organizations and over 11,000 employees of venture-backed companies have engaged in community benefit programs. Additionally, private stock donated from hundreds of member companies will someday become liquid, enabling further, substantial charitable donations.

How do venture capitalists engage with EF?

Venture capitalists are critical to EF's success as they help to make introductions to their portfolio companies. Because companies join EF with an equity grant, venture capitalist support is crucial given that we serve as members of the companies' boards of directors, which must approve the equity grants. Engaging with EF as a venture capitalist is easy and is a highly leveraged way to help local community organizations.

How do companies benefit from their involvement with EF?

Companies that integrate corporate citizenship and philanthropic programs into the fabric of the corporate culture have enhanced public reputations, stronger employee teams due to higher morale and retention, and they gain the respect of their customers and suppliers. Corporate citizenship is becoming a must do rather than a nice to do in our competitive economy. Employees value these programs because they want to work for a company with solid values and a positive culture.Additionally, many investors are more inclined to purchase the stock of public companies that have philanthropic and community involvement programs.

What is your long term goal for Entrepreneurs Foundation?

EF has pioneered and proven its innovative model for engaging companies in philanthropy and community involvement. Hundreds of companies have joined EF and are now benefiting. My goal is to spread awareness of Entrepreneurs Foundation so that it becomes "standard practice" for venture-backed companies to join.When this occurs, and joining EF is the norm, all of the cities in which EF operates will become stronger, not just for business and innovation, but also in their schools, environment, and social services where important business-community ties and support have been created. Our vision is that all companies, regardless of size and stage of development, will incorporate social responsibility and community involvement into their values and operations. The partnership between EF and NVCA is an important step toward achieving these goals.

How can NVCA members who like the EF concept get their portfolio companies involved?

It is as simple as facilitating an introduction between the Entrepreneurs Foundation and one of your portfolio company CEO's. The EF employee will take it from there.

Don Wood serves on the board of Entrepreneurs Foundation Bay Area.

CONTACT: Entrepreneurs Foundation (EF)

455 DeGuigne Drive, Sunnyvale, CA 94085
Tel 408.616.4270 | Fax 408.616.4275
E-mail: ask@efbayarea.org. Internet: www.efbayarea.org.

CONTACT: National Venture Capital Association (NVCA)

1655 North Fort Myer Drive, Suite 850, Arlington,VA 22209
Tel 703.524.2549 | Fax 703.524.3940
Internet: www.nvca.org.