Tech entrepreneurs have pledged £90m to social good in just one year, by committing the potential profit of their future business exits up-front.
Through the Founders Pledge, entrepreneurs commit to donate 2% of their personal proceeds to a social cause of their choice, following an exit.
Co-Founder and CEO David Goldberg, says: “Founders Pledge is working to move the needle for entrepreneurs as it relates to philanthropy and getting founders to start to think about doing good early on in their careers. We're linking up the best minds in the commercial sector with the leaders of great charities so they can learn from each other - for their mutual benefit. At the same time, by advocating for a data-driven approach to impact, we hope to change how not-for-profit organisations approach their mission and the measurement of success."
With the average age of a company founder being late 20s, millennials and ‘pre-millennials’ are significantly driving the tech sector to be a force for good. So far the campaign has attracted 430 pledges with an average pledge value of $220k. It is on target to generate US$0.25bn (£173m) by the end of 2016 and a potential pledge value of US$1bn by the end of 2017.
José Neves, Founder & CEO of Farfetch, who has made the commitment says: "The Founder’s Pledge is a revolutionary approach to early stage philanthropy that allows founders of tech companies to “give back" at a point where they may be worth a lot on paper but very little (if anything!) in cash. Hopefully, the pledge will send a message to the global tech community that tech businesses may not be the biggest contributors to not-for-profit organisations and NGOs today, but they will be in the future and that we are materially committed to the values of corporate social responsibility."
Find out more about Founders Pledge Movement and how to join it here.