The effect of founder experience on the performance of philanthropic venture capital firms

Abstract

This article assesses the relationship between the experiences of the philanthropic venture capital firm’s founding team and the venture firm’s subsequent economic, social, and total performance. Results indicate that commercial and social experiences help economic and social performance, respectively. However, when pursuing the maximization of both social and economic performance, philanthropic venture capital firms perform best when the founding team has high levels of commercial experience and low levels of social experience.