charity capacity-building and social ventures (Young Foundation 2007), helping to develop an estimated £24 billion social enterprise sector that now employs 800,000
commissioning and procurement structures are suited to social innovation ventures. In addition, there is a dearth of skills across sectors
and early-stage ventures with the support needed to achieve success in national and international markets
This limits the ability to adequately benchmark its performance A number of studies (including the High Level Review of the State Commercial Ports, 2003,
Alongside this there is the work of the county enterprise boards in helping people start new business ventures.
which is an international venture capital-driven programme that has been used in Dublin but which could be replicated in the Southeast
be employed by digital ventures and those who have the skills to actually do those jobs
business venture. These choices are made either intentionally or by default, so the contribution of a business model is to make them explicit (Morris et al. 2005
development may be part of new venture planning, but is often just as useful in sense making around a going concern,
assets, and much new investment being allocated to ventures that remain experimental, and adaptive in nature
a social venture, systemic innovation and societal transformation. With this being the case it might
 Venture phil pp anthropy  Tailored courses for social entrepreenneurs and other actors SKILLS FOR INNOVATION
 Venture phil pp anthropy  Tailored courses for social entrepreenneurs and other actors SKILLS FOR INNOVATION
social venture, systemic innovation and societal transformation? Building on the literature referenced earlier that speaks to the multiple
utility, as well as providing benchmarks like the price of anarchy ratio. Ideally a single metric should be used
2. 2 Today†s Datacenters as the Benchmark for the Cloud Using technology always constitutes a certain risk.
we believe that today†s datacenters are the benchmark for new cloud deploy -ments. Overall, the beneï ts need to outweigh the potential disadvantages and
like RUBIS benchmark 3, an auction site prototype modeled after ebay. com. It provides a virtualized distributed application that consists of three components, a web
Today's Datacenters as the Benchmark for the Cloud New Security and Privacy Risks and Emerging Security Controls
strategic foundation from which to build the venture (West and Noel 2009. The syn -thesizing of information is ultimately distinctive for each venture
Family-sponsored ventures. Paper presented at the first annual global entrepreneurship symposium, New york, 29 apr 2003
) A comparison of methods and sources for obtaining estimates of new venture performance. Journal of Business Venturing, 7, 157†170
) Clusters, knowledge spillovers and new venture performance an empirical examination. Journal of Business Venturing, 23 (4), 405†422
) Cooperative strategy and new venture performance: the role of business strategy and management experience. Strategic Management Journal, 16 (7), 565†580
) Improving new venture performance: the role of strategy, industry structure and the entrepreneur. Journal of Business Venturing, 2 (1), 5†28
) The impact of knowledge resources on new venture performance. Journal of Small Business Management, 47 (1), 1
and attracting venture capital for promising projects 18 iii It is important to note that collecting sensitive information from SMES (i e. information about their innovation
a maturing venture capital scene as well as higher workforce mobility v Each participating SME€ s core area of operation was standardized using the Standard Industrial Classification
spin-offs and venture capital; local firms and universities to work collaboratively; and •ensuring the sustainability of Smart Specialisation Strategies beyond the structural funding timeframe
viii http://www. youngfoundation. org/our-work/ventures-and-investment/health -launchpad/portfolio/neuroresponse/neuroresponse
individuals involved in creating new ventures for social purposes, including the willingness to take risks
up as a separate venture, with public finance and a service contract that can prove itself at scale.
these elements together, has been the growth of venture philanthropy Given the variety and breadth of the grant economy,
5. Venture philanthropy Tackling Social Exclusion †Barka Foundation for Mutual Help, Poland 50 The Barka (meaning lifeboat) Foundation was established in 1990 to help the
which connect entrepreneurs with venture capitalists 54 with everyday tasks. The two winning projects were My Doctor, a digital
Venture philanthropy †the One Foundation, Ireland Traditional grant making organisations have for some time been criticised for
Venture philanthropy is a response to this criticism, and seek s to use many of the tools of venture capital funding to promote start-up
growth and risk-taking social ventures Venture philanthropists seek social as well as financial returns on investment
†although in many areas, the majority of venture philanthropy activity is based on nonreturnable grants (i e. seeks purely social returns on
investment). ) Over the last decade, venture philanthropy has played an important role in diversifying capital markets for social purpose organisations
and reaffirming some key principles for good grant making. In particular venture philanthropy has filled a gap between traditional grants for non
profits and commercial market rate equity and loans. lxxxvii There are six main features of venture philanthropy as it has come to be
practiced. Venture philanthropists •have a close relationship with the social entrepreneurs and organisations they support
•provide tailored finance to meet the needs of the projects they support •provide nonfinancial support (such as strategic planning, marketing
and communications, executive coaching, human resource advice and access to other networks and potential funders
There are more than 100 venture philanthropy organisations around the world, working with a range of organisations †not solely charities and not
and Venture Partnership Foundation in the UK, d. o. b. Foundation in the Netherlands, Good Deed Foundation in Estonia, Invest for Children in Spain
Oltre Venture in Italy and the One Foundation in Ireland The One Foundation, established in 2004,
is a venture philanthropy organisation which aspires to improve the lives of disadvantaged children in
In line with the model of venture philanthropy outlined above, the One Foundation provides hands on support for social purpose organisations
Fund) and others act as public venture funds, providing seed capital to social innovators (for example, the White house Office of Social Innovation and
foresight projects and venture capital investments. The fund focuses on initiatives with international potential. Innovation labs will support foresight
benchmarks This model is somewhat more complex, with more handovers and transaction costs, but opens up a radical new avenue for bringing in new sources of
venture capital firms, conferences and academic journals, consultancies which specialise in assessing companies†IP or R&d pipelines to spot patterns and
sustainable venture. The SEIR can help organisations and individuals access finance, professional support, for instance, in exercising due diligence
ventures The Business Panel on Future Innovation Policy notes that â€oethe current finance system is not fit for the new types of innovation required to address
venture capital, loan guarantees) is fragmented and fails to mobilise private sector investment efficiently or consistently. cxxvi
and success of social ventures, initiatives and services, which incorporate social as well as financial impact, are also coming into play, all of
Human Development Index (HDI) to benchmark countries based on combined measurement of GDP/capita, health and education.
of social ventures, initiatives and services, which incorporate social as well as financial impact, are also coming into play,
venture capital funds, innovation awards and so on. However, there is currently no equivalent for social innovation. By building capacity within
foundations can learn from venture capital, Harvard Business Review, Cambridge, MA lxxxvii Emerson, J, Freundlich, T,
2009) †European Venture Philanthropy Directory 2009/2010†Brussels: European Venture Philanthropy Association. Available at
http://www. evpa. eu. com/downloads/EVPA DIRECTORY 2010 WEB ISSUE1. pdf lxxxix Andrew Milner,(eds. 2009) †European Venture Philanthropy Directory 2009/2010â€
Brussels: European Venture Philanthropy Association. Available at http://www. evpa. eu. com/downloads/EVPA DIRECTORY 2010 WEB ISSUE1. pdf
xc Alvin Toffler (1980) The Third Wave. London: Collins 123 xci My Estonia at http://www. minueesti. ee/?
Like the social ventures it describes, we want this work to grow and develop. Your comments, thoughts and stories are welcome at the
of developing workable ideas and setting up a social venture in a way that ensures its financial sustainability;
venture capital with those from tendering and grant giving. Others are combining ethnography, visualisation techniques from product design, user
Conversely, some NGOS are learning from venture capital not only how to finance emerging ideas, but also how to kill off ones that aren†t
often advisable to set it up as a separate venture, with public finance and a
•A business model that runs parallel to the core idea of the venture and which sets out how it can become sustainable
Any venture driven by a social mission has an interest in maximising the spread of an innovation beyond the
Most social ventures have to do both †to remain open and collaborative, while surviving financially.
this openness, together with the social mission of the venture, that attracts voluntary contributions in terms of volunteer time, resources, and donations
Social ventures have much to gain from keeping open, yet this is easier said than done.
Ventures are subject to the day to day disciplines of keeping the show on the road. They tend to turn inwards behind their organisational moat
strategy about how the proposed venture is positioned on the economic field of play. There will be key points of control in any sector of
which a venture is based. In the diagram below we identify 12 alternative axes which may be more appropriate for social ventures
62 THE OPEN BOOK OF SOCIAL INNOVATION 4 disaggregating its activities to generate alternative income streams
Particularly instructive for social ventures are the lessons from the business models adopted by web companies which, like social ventures
have an interest in maintaining free access, while at the same time generating revenues indirectly as the result of the response that the free
social venture to be a straightforward implementation of a blueprint (it is much more like a process of discovery and unfolding), plans help to
competence of those engaged in taking the venture forward 109) Business plan assessment methods. There are many methods that
methods from the field of venture capital, for example, provide a rigorous framework for paying attention to the many elements that together make
model for new ventures has shown 12 axes in the diagram below. For each of them, progress is mapped in four stages.
chart the progress of more than 450 ventures, in order to identify key areas for further development Ownership and organisational form
when every venture has to decide what organisational form to take, what kind of decision making and accountability processes to
For some social ventures, simple private company models are the most suitable: they may help with raising equity, and
Most social ventures depend on restrictions Just a few of the houses built by Un Techo para Chile (A Roof for Chile
ventures to access equity investment while maintaining the social goals of the enterprise as paramount.
instruments of governance of social ventures, they have a dysfunctional history. They represent a division between moral and manual labour
Yet the success of a social venture depends on an integration of the two. The means of overcoming this
work of the venture. Boards are required legally to act as guardians of values and mission, and often see themselves as having to resist
But increasingly social ventures are seeking ways to involve stakeholders that do not depend on representation on a board
comprehensive guides to help ventures make decisions about governance models and organisational forms. These can be used at an
more directly in the work of a venture, both directly, and through representation on the board.
Many social ventures try and avoid strict hierarchical structures by remaining small and by subdividing (like
cells) or collaborating with other similar ventures. Some have adopted a franchised model, to allow each unit to remain relatively small, while
benefitting from economies of scale for the group of ventures as a whole This is the basis for the expansion of Riverford Organic Vegetables Ltd
his venture small, and production local. The resulting network now delivers 47,000 organic food boxes a week
The distinctive value and values of a social venture show up not just in its structures but in its operations †how it works with others, uses technologies
reflect the values of the venture are often a key element in sustaining and expanding a social venture.
An organic food box scheme, for example, depends on its certified supply chain. A fair trade company
For some ventures providing intermediate goods or services the challenge is how to develop a demand
demand chain reflecting the social mission of the venture 4 SUSTAINING 71 133) Shared backroom economies.
Many new ventures carry high overheads because of their small scale, or they fail to invest in financial
It is important for ventures to find ways of sharing these overheads, or access part-time specialists,
It is often important for ventures to adopt technologies that are flexible, adaptable, and suitable for distributed
New ventures put much of their energy into securing financial capital †money to invest in fixed assets on the one hand,
built up between a venture and its users and suppliers, and the relationships between a venture and its staff and volunteers.
Conventional accounting takes little account of this intangible capital, yet in all social ventures it is the
foundation of their strength, and of their distinctiveness We use the concept of relational capital to capture the quality of relationships
relevance for a social venture, as its fortunes depend on the range and depth of its relationships that
property and contract, for a social venture the boundaries are more porous †internal and external interests mesh
It is one of its greatest potential assets that a social venture can attract support and resources from outside itself,
project, for it is from an open and inclusive culture that a social venture draws much of its strength
ventures tend to rely on their idea to galvanise funders and users They place their operational focus more on supply than demand.
to ensure that the venture remains generative rather than static, users should remain central †a service should know who they are and who
Just as no venture can operate without a finance and accounting system, it requires a system of user relationships and
All social ventures now have to have a website. But their full potential has begun only to be explored.
Many ventures are by their nature information intensive †in respect to the quality and tangibility
It has therefore become crucial for ventures to have access to the tools †wikis, chat rooms, forums, comment boxes, and
Above all, a venture needs to devote resources to the constant updating and active hosting of their sites.
Social ventures, particularly those that are tax-funded or grant-aided, have been suspicious of branding
But all ventures have an appearance and a style. It is part of the way they communicate.
Social ventures should see branding as a flame that indicates a presence and attracts people
Some ventures go further and make their workplace into a working gallery or museum. They demonstrate much of their work
It is always a useful exercise for a venture 4 76 THE OPEN BOOK OF SOCIAL INNOVATION
much more important for social ventures than commercial ones. They allow a wider group to share in the spirit of the venture
141) Open forms of intellectual property to maximise the spread and diffusion of the idea or service.
Social ventures have an interest in adopting open forms of intellectual property. They stand to benefit
venture that initiated the zero carbon development at Bedzed) recently placed its most valuable technical information on the web for open
For some ventures this may involve the foregoing of possible income streams from the sale
training and shared orientation of those engaged in the venture plays a critical role in providing cohesion to social ventures.
It informs the articulation of the venture†s central purpose. It provides meaning for those working for the venture, for investors and volunteers, and it gives
to the venture a living, reflexive power that is not limited to particular individuals or levels in the organisation,
but to all those involved. This is important also, for public innovation, through, for example, bodies like
not only for the venture itself, but to create a group of individuals able to put the ideas into practice more widely.
expense, but there is great potential value to a new venture if it makes one of its goals the attraction and effective employment of a wide
like the social housing venture Habitat for Humanity, are primarily volunteer organisations of this kind
Venture finance Every innovation process requires some finance. For social ventures it is key that the sources of finance should share the venture†s social goals as the
primary driver of the enterprise. This may not always be possible. Raising capital may involve some compromise with the providers of capital, but the
To finance new ventures there are a range of ethical banks and social funding agencies devoted to supporting new and expanding ventures.
All forms of finance bring with them power relationships, which can sometimes threaten the values and relationships which the venture is built on.
To guarantee that the initial venture funding remains subordinate to the values of the social
mission, enterprises can raise social equity, limit the quantity of common shares, and seek subordinated loans from sources ready to share early risk
145) Grant funding is provided sometimes to grow social ventures This usually depends on one or two wealthy philanthropists having
much of the loans now being made for social ventures are coming from specialised social finance organisations, sometimes seeking security
an advantage over venture capital funding in that they can tap investors who want to make social impact their primary incentive rather than
151) Venture philanthropy uses many of the tools of venture funding to promote start-up, growth,
and risk-taking social ventures. It plays an important role in diversifying capital markets for nonprofits and social
in Estonia, Invest for Children (i4c) in Spain, Oltre Venture in Italy, and both Social Venture Partners and Venture Philanthropy Partners in the
US Sustaining innovations through the public sector Sustaining ideas in the public sector involves different tools to those needed in
markets or for social ventures. There are similar issues of effective supply (the proof that a particular model works) and effective demand (mobilising sources
A venture may take it on itself to ensure this synchronisation of growth, but it is undertaken also by
developing the venture and the way it connects, and is held together by a common core of meaning
of tools in use in banking, venture capital and other fields of investment which assess current and future cash flows, asset values, etc
228) Outcome benchmarks, such as the local surveys now undertaken to measure answers to questions such as how well people get on with each
challenge for bottom-up ventures is how to access the power and money to 6 110 THE OPEN BOOK OF SOCIAL INNOVATION
or any benchmarks to draw on. Instead, assessments need to include some judgement of the broader direction of change in the field as a
specialists in technology transfer, venture capital firms, conferences, and academic journals †which sit alongside consultants adept at looking at
that any new venture needs to be based somewhere, and people tend to like to congregate with others like them
range of social ventures to become more effective in tackling social problems We†ve suggested that much social innovation comes from linking up the
ventures; places to access experience, knowledge, finance and markets And above all, places for making connections
others act as internal public venture funds, such as the UK€ s †Invest to Save†budget for crosscutting innovations,
model that seeks to create new ventures and back social entrepreneurs †with a multidisciplinary team, a staged investment model, and an
cent of turnover as a rough benchmark (similar to the proportion of GDP now devoted to government support for technological and scientific
324) Dedicated innovation funds and internal public venture funds, such as the UK€ s †Invest to Save†budget for crosscutting innovations, The
funding for community ventures 351) Socialising risk. New forms of social insurance for long term care â€
entrepreneurship and venture philanthropy have also been better at supporting individual projects than making them more than the sum of their
smaller, but visible, trend has been the growth in venture philanthropy, with much greater involvement of donors in projects and organisations.
United Way, Social Venture Network, or the North Virginian Giving Circle of HOPE (Helping Other People Everydy.
420) Venture philanthropy focused on innovation in particular sectors, such as the Robert Wood Johnson Foundation†s (RWJF€ s) Pioneer Portfolio
425) Metrics for venture philanthropy such as those developed by Homeward Bound, a project to end homelessness in the US, or †blended
Venture philanthropists, including Private Equity Foundation and Impetus Trust, are now using the skills of the
4. John, R. 2006) Venture Philanthropy: the evolution of high engagement philanthropy in Europe. †Skoll Centre for Social Entrepreneurship Working Paper. †Oxford:
/Documents/Venture%20philanthropy%20in%20europe. pdf. For large scale developments in this field, see: Bishop, M. and Green, M. 2008) †Philanthrocapitalism. †London:
Ventures in Australia 444) Consumer co-ops such as the Japanese food co-ops which have 13 million members.
BASF †Grameen venture, also in Bangladesh, which hopes to improve health and business opportunities for those on low income in the
458) Social enterprise funds including the new venture capital fund, set up by Triodos Bank, which invests in high impact and commercially
459) Social venture funds that use equity-like investments for start-up and early-stage social ventures where loan financing is unsuitable
Examples include Bridges Community Ventures in the UK, which invests in businesses based in regeneration areas and in sustainable business
sectors, including the environment, education, and healthcare 460) Microcredit for microproduction. Grameen, BRAC and ASA in
can invest in the start-up equity of social ventures, as with the Mustard Seed charity†s investment in the fair trade Community Interest Company
474) Business angels provide finance for social ventures, often with advisory roles, and sometimes supported by networks to link investors and
Bridges Community Ventures 186 Brokers 134 212 THE OPEN BOOK OF SOCIAL INNOVATION Brookings Institute 48
For new ventures 78-80 For systemic change 121-122 Public economy 149-161 budgets to promote internal
Oltre Venture 80 One Click Organisations 68 Open Open Access Journals 200 Open Brands 83;
Social Venture Network 171 Social Venture Partners 80 218 THE OPEN BOOK OF SOCIAL INNOVATION
Sonoma Mountain Village 112 Space 18; 36; 45-46; 114; 129; 130; 148 153; 197;
Venture Philanthropy 80,167-168,172 175 Visiting 36,205 Vodafone 183-4, 219 Voting 41,65, 153-154
Work Ventures 183 Working Rite 66-67,220 World bank 19,38, 89 Worldchanging 178 WRAP 135 X-Prize 39
success with ventures such as the Open university, †Which? â€, the School for Social Entrepreneurs and Healthline (the precursor of NHS Direct.
over 40 ventures at any one time, with staff in New york and Paris as well as London and Birmingham in the UK
-business †in some cases perceived as the worldwide benchmark †the situation is entirely different in regions with less developed economies, particularly in
knowledge basis including models and e-business practice, benchmark implementation of digital business ecosystems Lack of technological solutions and of interoperability
support for venture capital, investment forum Stafford Beer, Platform for Change,, John Wiley & Sons Ltd, 1995
technology incubators), financial support institutions (public and private venture capital firms, angel networks, seed capital funds, etc.
control, investment and provision of public venture capital, which is a traditional task for the Industry sphere (e g.
support and even funding to encourage entrepreneurial ventures, thus enacting some of the traditional role of industry.
and government in creating a venture capital industry to support new firm formation and growth (Etzkowitz, 2002.
which invented the contemporary format for the venture capital firm building upon family investment firms with a professional staff.
political strategy to make the venture capital firm a viable entity by lobbying to 22 change laws that prevented large financial institutions from investing in risky
ventures o Providing solutions to conflict or crisis situations, such as socioeconomic crises caused by loss of manufacturing industries
newly-emerging radio industry in the 1920†s and invented the venture capital firm to expand
A venture capital approach was taken with a few promising ideas, like computer networking winnowed from a larger collection (Miller, 1997
In the past, the venture capital model was created from such an analysis (Etzkowitz, 2002; what form would such analysis take in our days
national and regional programmes to promote venture 35 capital funds and loans, improve access to debt
Littunen, H. and Virtanen, M. 2009), â€oedifferentiating factors of venture growth: from statics to dynamicsâ€, International Journal of Entrepreneurial Behaviour & Research, Vol. 15 No. 6
10.11 Starbucks Digital Ventures...204 10.11.1 Developer...205 10.11.2 Applications...206 10.12 Summary...206 References...
by Mary Meeker2 and Liang Wu in the annual ††Internettrends††report by venture
, on the basis of historic or benchmark data; while for the security /risk/and compliance perspective they can be the mapping of users and accounts in
and benchmarks to track and demonstrate success Adapted from 11 8. 4 Digital Governance Success Factors 153
substantial funding through venture capital operations in the startup phase, went from IPO (Initial public offering: i e. the first offer of securities to the public by a
10.11 Starbucks Digital Ventures It appears, looking at the case of Starbucks 12, that coffee shop differentiation in
10.11 Starbucks Digital Ventures 205 10.11.2 Applications Starbucks Digital Ventures†strategy aims at developing a digital media company
The fact that Starbucks Digital Ventures is independent from the IT function and Marketing function, reporting directly to
Company Starbucks digital ventures Funded 2008 Nï¿Products A few Clients Many Partners Few Market dimension Very large
Instabank, Truelink, Acceptemail, Starbucks Digital Ventures), social listening Billguard, Starbucks Digital Ventures), and the use of sensors for social sensing
Macrosense, Cogito, Noldus Face Reader. However, among the discussed digital innovation practices we have found also a coverage of digital work and collab
Starbucks Digital Ventures (2013) http://www. starbucks. com/coffeehouse/mobile-apps /mystarbucks. Accessed 18 nov 2013
10. 11†Starbucks Digital Ventures 10.11.1 Developer 10.11.2 Applications 10. 12†Summary References 11 Conclusion
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