Entrepreneurs commit millions in earnings to social causes

Reports reveal that Founders Pledge, which launches today, is a not-for-profit foundation that supports business founders who want to pledge at least 2 per cent of their eventual exit proceeds to good causes.

According to Forbes, the platform has already signed up 53 founders, who have agreed that when they exit their businesses, they will donate between 2 per cent and 10 per cent of their personal proceeds. Collectively, their pledges are estimated to be worth round $28m (£18.5m) today, but may end up being substantially more valuable by the time they’re ready to exit.

Sources say businesses whose founders have agreed to support the initiative so far include some of Britain’s best-know technology start-ups, including DueDil, Huddle, Farfetch, Swiftkey, Tapdaq and Zopa.

The idea is that entrepreneurs are able to align their businesses early on with the social causes that matter to them. While the founders may not have the means to make upfront cash donations, Founders Pledge enables them to make a statement of intent – and eventually to provide potentially very significant sums.

David Goldberg, director of Founders Forum for Good, the organisation behind Founders Pledge, says many entrepreneurs are keen to make a social impact right from the start.

“Over the last 10 years, the tech and digital sector has grown an inspiring group of founders that are building game-changing businesses,” he says. “Through the Founders Pledge, this new generation of entrepreneurs has a mechanism to give back apply their disruptive mindset to be a change for good.”