Accordingly, foundations compromise the likelihood of measurable return. 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. 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. Foundations seldom stay involved for more than two or three years. Often the exit is made possible by another VC firm. Foundations rarely have an exit strategy. The pioneers of venture philanthropy come from a new generation of entrepreneurs who, generally, have never been part of the foundation community.