The rise of venture philanthropy

Charity is changing. Patient advocacy groups and medical research charities, frustrated by the lack of investment in the life-saving therapies their loved ones need to survive, are taking up the trade of venture capitalism – and it turns out, they’re pretty good at it.

Instead of traditional granting, where charities take donations and distribute them periodically, more organisations are adopting a model that falls under the umbrella category known as venture philanthropy. Investing their funds in companies, with the hope of returning both new drugs, and financial returns. For example, medical research charity LifeArc (formerly MRC Technology) recently sold a portion of its share of royalties from the blockbuster cancer drug Keytruda (pembrolizumab) which it helped bring to market, for $1.3 billion (£1 billion).