Foundations avoid risk because they are not rewarded one way or the other for taking risk. Accordingly, foundations compromise the likelihood of measurable return. Performance Measures VC firms focus on performance measures that will lead to long-term growth. Closeness of Relationship VC firms are comfortable with close working relationships with investees. They are involved in deal flow, CEO selection, strategic planning, etc.
Foundations tend to keep their distance in their relationship with grantees.
In addition, they tend to be totally uninvolved in operations. Amount of Funding VC firms fund few deals but they put enough money in chosen deals to make a difference. They will also help with subsequent funding needs. Foundations fund a small part of each deal. They tend to undercapitalize and seldom help with subsequent funding needs.