Business as a force for good is a top-of-mind topic. The last eighteen months have proven the power and the important role businesses have when it comes to tackling problems in our interconnected world. What it means to be a successful company has changed as leaders integrate ESG programs and other initiatives into their business DNA. This includes formalizing their equity pledge in advance of a liquidity event.
The shift is real and imminent. We’re seeing some of today’s hottest and most successful companies set aside equity before they reach IPO or acquisition, whereas more and more top VC firms are supporting this commitment to social good.
At this year’s SaaStr Enterprise, Pledge 1%’s CEO Amy Lesnick spoke with Rich Wong, General Partner of Accel, and CEOs Yvonne Wassenaar of Puppet and Dan Springer of DocuSign about their Pledge 1% strategies and how setting aside equity is not just the right, but the smart thing to do. Here are our 3 takeaways from the event:
- There is a moral imperative to help if you are in a position to support the communities you operate in. Companies – especially large ones or those in industries with larger stock and social value – have not only the ability but an obligation to make a positive impact on the world they are shaping.
- Giving back creates a company culture that attracts top talent who are proud to work with your mission and values. Economic incentives help attract top talent, but it’s the central drive and mission of a company that really brings people on board. Formalizing an equity pledge and joining Pledge 1% is a great way to attract people who are passionate about their work and excited to work at a place whose values they believe in.
- VCs and investors should support companies who pledge equity and integrate the Pledge 1% model into their business plans. This is a growing trend, and as more and more companies join Pledge 1%, an increasing number of investors are realizing the value of supporting founders who have this vision.
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To learn more, watch the full recording of the conversation below or if you are a company, download the Pledge 1% CEO Equity Playbook and learn how you can join business leaders around the world in setting aside equity today for impact tomorrow.
We also invite VCs and investors to email our team to learn more about our tools and program for investors!
Originally published on Appfire.com. Written by Cody Wooten.
In 2015, Appfire formally joined an impressive network of organizations across the globe who have committed to philanthropic efforts through the Pledge 1% movement. Since 2018, across all Appfire products, we have donated millions of dollars in free products to non-profit and educational organizations around the world.
We have contributed donations to charities such as Feeding America, Rise Against Hunger, Room to Read, Rally Foundation for Childhood Cancer Research, the American Cancer Society, and many others. Giving back is an integral part of our business and a key component of our company DNA.
Further elevating our philanthropic commitments was a critical element of entering into our new partnership with TA Associates and the strategic investment they made in Appfire earlier this year. Today Appfire is excited to officially announce that we will donate 1% of the equity in our business to Pledge 1% to continue their movement to inspire, educate, and empower companies to leverage their assets to be a force for good. This also means that Appfire has grown our Pledge 1% program to all four pledge types — product, profit, equity, and employee time.
“From day one, we’ve been committed to giving back — not just once we grew larger and could afford to do so, but starting day one, wherever we could, however we could,” said Randall Ward, co-founder and CEO, Appfire. “We strongly believe in the Pledge 1% movement and are thrilled to enter into this next phase of charitable giving.”
As a Pledge 1% Builder, Appfire invests time developing program content, supporting local communities, and helping spread the word about Pledge 1% to recruit new member organizations. Pledge 1% membership has grown to over 12,000 companies in 100+ countries thanks in large part to its flexible framework.
“Many of today’s hottest and most successful companies are setting aside equity for social impact on their road to a liquidity event. By formalizing their equity pledge, Appfire is once again demonstrating their leadership in the Pledge 1% movement and inspiring other companies to join them in leveraging all of their assets for good,” said Amy Lesnick, Chief Executive of Pledge 1%.
“By generously directing their equity to fund Pledge 1%, Appfire is taking this new normal a step further and helping propel the Pledge 1% movement forward. This is setting a strong example for how today’s business leaders can have an exponential impact. We are immensely grateful to Appfire — it’s through leaders like Randall and the Appfire team that we can accelerate the movement today and for years to come.”
We are so proud to be a part of the Pledge 1% community and encourage other companies to take the pledge. Learn more at www.pledge1percent.org.
(Author’s note: We want to give a big THANK YOU & CONGRATS to Randall Ward and the Appfire team for formalizing their #Pledge1 commitment! We are so grateful for your leadership. -Pledge 1%)
[July 29, 2020] We are entering a new era of corporate giving. Now, more than ever before, top talent and customers want to work for and with companies whose values are aligned with their own. Companies that have implemented one or more of the Pledge 1% commitments (donating 1% of employee time, product, equity or profit) are at the forefront of this growing trend and are creating a new normal for businesses to leverage their impact for good.
With today’s unprecedented social, health, and economic challenges, it’s clear that companies have an important and essential role to play in being part of the solution. One way companies of all sizes and stages are securing their social impact work for years to come is by pledging equity. By setting aside equity for social impact, companies can demonstrate their long-term commitment to these values, differentiate their company from competitors, and sustainably fund their social impact work for years to come. In the last 3 years alone, top companies that set aside equity for social impact have ignited over $250 million in new philanthropy via their IPOs.
Pledging equity is especially valuable for startups that are interested in giving back, but have yet to see profit. It is also increasingly becoming the norm for top late-stage companies. In fact, many of today’s most successful companies, including Docusign, PagerDuty, Pluralsight, Sendgrid, Slack, Twilio, Upwork, and Zuora have pledged equity on the road to IPO.
We are also seeing tremendous support from the VC community, as individual investors from top venture capital firms, including Accel, Bain Capital, Benchmark, Bessemer Venture Partners, Foundry Group, Index Ventures, Jackson Square Ventures, Khosla Ventures, Mayfield Fund, Salesforce Ventures, Sequoia Capital, SV Angel, Techstars have supported their portfolio company CEOs in educating other Board members and setting aside equity for social impact.
“There’s never been a more important time for companies to leverage their assets to be a force for good. Setting aside equity now for social impact, ensures that companies will have the resources they need to tackle the most pressing issues in our future,” said Amy Lesnick, Chief Executive of Pledge 1%. “Pledging equity is increasingly becoming the new normal for successful companies who understand that this is not only good for the world, it’s also good for business as employees and customers expect them to do more than simply generate growth and profit.”
The new Pledge 1% CEO Equity Playbook and Companion Guide for CFOs and GCs was designed in collaboration with top CEOs and thought leaders to help companies of all sizes pledge equity. Contents include equity donation models for founders, corporate case studies, and more. The Companion Guide was created for CFOs and GCs to help their companies formalize the equity pledge, and contains legal templates and tools.
Today’s issues will not be resolved by governments and nonprofits alone. The companies who set aside equity for philanthropy pre-liquidity have been able to fund efforts around COVID-19 relief, social justice, economic development, and other global challenges. Download the Playbook to learn how you can pledge equity today for impact tomorrow.
SAN FRANCISCO, CA (June 6, 2019) – RightRice® the delicious breakthrough vegetable rice announced today it joins Pledge 1% to launch its “Right Mission” campaign aimed at fighting hunger and providing better nutrition for children. RightRice® is donating a 1% equity stake in the company to No Kid Hungry to help drive greater impact in the fight to end childhood hunger.
No Kid Hungry launched in 2010 with a simple belief: No child should go hungry in America. But with 1 in 6 kids still living with hunger today, the campaign remains focused on working to end childhood hunger through effective programs that provide kids
with the nutritious food they need. RightRice® is the first of its kind vegetable rice grain that launched nationwide in Whole Foods Markets and on Amazon earlier this year. Packed with the power of vegetables, RightRice® offers more than twice the protein, five times the fiber and almost 40% fewer net carbs than a bowl of white rice. Kids love rice, and one of RightRice®’s core missions is finding ways to share the veggie packed nutrition of RightRice® with kids. By partnering with No Kid Hungry, RightRice® can accelerate its vision to support kids across the country.
“We are grateful to be partnering with the RightRice® team and Founder Keith Belling for his next disruptive food business,” said Peter Kaye, Chief Revenue & Marketing Office for Share Our Strength, the organization behind the No Kid Hungry campaign. “Our alignment could not be stronger to build an innovative, entrepreneurial partnership supported by an equity stake for our organization in RightRice® that gives us the potential for significant future resources to help kids in America that live with the threat of hunger to get the healthy meals they need to succeed.”
“RightRice® has been inspired by companies like Salesforce.com and Patagonia who have clearly prioritized social impact as a core part of their DNA.” said Keith Belling, Founder and CEO of RightRice®. “At RightRice® we believe in a world where all companies are focused on both profits and impact and we are honored to kick off our ‘Right Mission’ campaign by donating 1% equity to No Kid Hungry to help scale their impact even further. We hope we can inspire other innovative, forward thinking food and beverage companies to join the Pledge 1% movement and follow suit.”
Kids should be the ultimate stakeholders of all businesses and donating a significant equity stake in RightRice® is just the beginning of the Company’s “Right Mission” to focus on finding ways to provide kids with better nutrition.
For more information visit RightRice.com, NoKidHungry.com or pledge1percent.org.
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About RightRice®
Popchips® founder and former CEO Keith Belling loved rice, except for the empty calories and all the carbs. That’s what inspired him to create RightRice®, a tasty new rice grain made from vegetables, that launched nationwide in Whole Foods and on Amazon earlier this year. This shelf-stable grain is what we all love about rice, made even right-er. RightRice® is a complete, plant-based protein that’s delicious, nutritious, and faster (and easier) to cook than regular rice. Every bowl of RightRice® has more than double the protein, five times the fiber, and almost 40 percent fewer net carbs than a bowl of white rice. Anything you can cook with rice, you can cook with RightRice®, and just like rice, RightRice® soaks up your favorite flavors and sauces. Original RightRice® is ready to season your
own way, or you can try one of our delicious, already seasoned varieties like Lemon Pepper, Spanish, and Garlic Herb—all using real herbs and spices, non-GMO, gluten-free, vegan, kosher, all with a low glycemic index. RightRice® launched in 2019 and is headquartered in San Francisco.
About No Kid Hungry
No child should go hungry in America. But 1 in 6 kids will face hunger this year. No Kid Hungry is ending childhood hunger through effective programs that provide kids with the food they need. This is a problem we know how to solve. No Kid Hungry is a campaign of Share our Strength, an organization working to end hunger and poverty. Join us at www.NoKidHungry.org
About Pledge 1%
Pledge 1% is a movement to create a new normal whereby social impact is integrated into the DNA of companies of all sizes and stages. Pledge 1% provides a framework for companies to commit 1% of their equity, profit, time, and/or product to any cause of their choosing. Pledge 1%’s role is to inspire, educate, and empower all founders and companies to leverage their unique assets to be a force for
good. Founded 5 years ago by visionary leaders from Salesforce, Atlassian, Techstars, Rally, and SV Angel, Pledge 1% has grown to over 8500 members in 100 countries. Pledge 1% members have already ignited over 1/2 billion dollars in new philanthropy. To learn more and/or join the movement visit www.pledge1percent.org
Originally published by SmartCompany
Social impact and philanthropic gestures have long gone hand-in-hand with the world of startups, as billion-dollar companies and investors strive to put their wealth to good use.
Bill and Melinda Gates’ foundation has all but eradicated polio, Salesforce founder Marc Benioff and his wife Lynne have donated millions to healthcare organisations, and Warren Buffett has donated over $40 billion dollars since the turn of the century.
And while this may seem to many like the exclusive realm of the mega-rich and mega-successful, the founders of Aussie startup success story Atlassian say they want every company, big or small, to do their bit for charity.
This is in part because Mike Cannon-Brookes and Scott Farquhar have been doing their bit for charity since the early days of the company, creating the basis for what’s known today as the Atlassian Foundation just a few years after the company’s founding in 2002.
Speaking to StartupSmart, head of the Atlassian Foundation Mark Reading says the two’s philanthropic efforts date back to the SaaS company’s formative years, with the two founders pledging from early on to follow Marc Benioff’s 1-1-1 model of giving back.
This model sees a company pledge 1% of its resources, equity, profit and employee time towards philanthropy and giving back, and to date, the Atlassian Foundation has donated over $23 million to charities and over 37,000 hours of employee time.
Reading says the founders decided “the most impactful” thing they could do was change the lives of disadvantaged youths, choosing to donate to education-focused charities.
However, four years ago, the company decided to kick it up a notch, and partnered with Salesforce and Rally to create a new movement to get other companies involved with the 1-1-1 model.
“We began the Pledge 1% movement to make giving back a core part of more organisations,” Reading says.
“If every single founder embedded giving 1% back into their business model, we could mobilise some serious global resources for social good.”
Reading says the push is based on the founders’ belief business has a huge opportunity to contribute positively to society, and them wanting as many businesses as possible to make a 1% contribution to make it the “new normal”.
“Just the same way you save a portion of equity in a new business for future employees, we want every business to commit just 1% of their equity for good,” he says.
“I couldn’t imagine starting a new business today without investing at least 1% of your resources for good.”
And while 1% may not sound a lot for a small startup in its early days, Reading says as long as its embedded in the company from the beginning, the amount given will scale as the company does.
Due to Atlassian’s long-standing commitment to philanthropy, Reading claims the Atlassian Foundation is the second-largest foundation of its type in the country.
“The earlier you get on board, the easier it is,” he says.
Reading even says the pledge has been a “great business decision” for Atlassian too, though an unintended one, as the company has found it easier to attract great talent due to its prominent dedication to giving back.
Social enterprise sector still lagging
As part of the efforts, Farquhar will be participating in the ‘Fastest Executive Race’ for education charity Room to Read in Sydney this week. Though he admits he hasn’t seen Farquhar run, Reading says the word in the Atlassian corridors is the executive has “Buckley’s chance” of coming out on top.
Looking broadly at the social enterprise space in Australia, Reading says there’s definitely “room for improvement” locally compared to efforts being made in the US and the UK.
“We’re probably not as advanced as some other countries, but we’re definitely doing great things. I think it comes down to the whole ecosystem doing its part,” he says.
“It has always been said the not-for-profit sector achieves so much with so little, and the for-profit sector achieves so little with so much, so we’re hoping to do our part to flip that on its head.”
NEW YORK, Sept. 27, 2017 /PRNewswire/ — MediaMath, the leading independent programmatic company for marketers, today announced it is allocating 1% of equity to charity via MediaMath.org, as a Pledge 1%partner. MediaMath will commit 1% of their time, technology, and resources to MediaMath.org – MediaMath’s philanthropic arm – as a part of the partnership with Pledge 1%, a corporate philanthropy movement dedicated to making the community a key stakeholder in every business.
MediaMath.org is joining a network of more than 2,700 companies in 60 countries that have committed to philanthropic efforts through Pledge 1%. In 2016, MediaMath launched MediaMath.org, including the rollout of volunteer and donation matching policies. MediaMath.org is founded on the idea of integrated philanthropy; combining charitable giving with the company’s technology and talent to help improve communities around the world. Since its inception, MediaMath.org has made a measurable impact, from serving food to the homeless in London to funding eyesight surgeries in Cambodia. MediaMath.org currently supports a growing list of nonprofits including Seva, BUILD.org, and others.
“I’m delighted to announce that MediaMath is adding 1% of our equity to our original pledge,” said Joe Zawadzki, Chairman, CEO and Co-Founder of MediaMath. “Giving back is a core value for us, and MediaMath.org has allowed our company to formalize our efforts and align resources, leading us to have more of an impact around the world. I’m very proud of what we’ve accomplished to date, and am extremely excited about what’s in our future.”
“We are thrilled that MediaMath has extended their Pledge 1% movement to now include equity,” said Suzanne DiBianca, EVP of Corporate Relations and Chief Philanthropy Officer of Salesforce. “By adding equity to their existing time and technology commitments, MediaMath will be able to send funds directly to nonprofits, which will have a significant impact as their business continues to grow.”
About MediaMath
MediaMath’s technology and services help brands and their agencies drive business outcomes through programmatic marketing. We believe that good advertising is customer-centric, delivering relevant and meaningful marketing experiences across channels, formats and devices. Powered by advanced machine learning algorithms that buy, optimize and report in real time, our platform gives sophisticated marketers access to first-, second- and third-party data and trillions of digital impressions across every media channel. Clients are supported by solutions and services experts that make it simple to activate our technology. Since launching the first Demand Side Platform (DSP) in 2007, MediaMath has grown to a global company of nearly 700 employees in 15 locations in every region of the world. MediaMath’s clients include all major holding companies and operating agencies as well as leading brands across top verticals.
About Pledge 1%
Pledge 1% is an effort spearheaded by Atlassian, Rally, Salesforce and Tides to accelerate their shared vision around integrating philanthropy into businesses around the world. Pledge 1% encourages and challenges individuals and companies to pledge 1% of equity, product and employee time for their communities, because pledging a small portion of future success can have a huge impact on tomorrow. Pledge 1% offers companies turnkey tools and best practices, making it accessible for any company to incorporate philanthropy into their business model. To learn more or to take the pledge, please visit www.pledge1percent.org.
Originally published on FinExtra.
Today The Upside Foundation, a national charity that makes it easy for early-stage or high-growth Canadian companies to give back in a meaningful way, announced the launch of their campaign, 150×150: Turn Equity Into Charity.
The campaign aims to grow the number of companies who have pledged to give back to 150, as we celebrate Canada’s 150th birthday. Canadian startups who make the pledge will donate a small portion of their equity to The Upside Foundation (typically in the form of stock options), which are converted to cash upon a liquidity event and donated to the charity of the company’s choosing. The Upside Foundation is also announcing several prominent Canadian startups who have taken the Upside pledge, including Wattpad, the Toronto-based entertainment company for original stories, as the first company to kick-off the 150×150 challenge.
“The Upside Foundation provides an easy solution for both early-stage startups and high-growth companies who want to give back but don’t necessarily have the time or money,” said Rob Antoniades, Board Chair and Co-founder of The Upside Foundation. “Through this national campaign, we hope to empower 150 Canadian startups to take the pledge to donate a portion of their equity and help build a stronger future for Canada.”
The Upside Foundation is partnered with Pledge 1%, a global movement founded by the Salesforce Foundation and others to inspire companies around the world about the benefits of early stage corporate philanthropy. Through Pledge 1%, over 1800 companies have donated one per cent of their equity, people or product to charity. In Canada, over 75 companies have already taken the Upside pledge, including Hubba, which raised Series B in funding in December 2016. New members include Wattpad, Wealthsimple, and Overbond, with additional members to be announced leading up to Canada’s 150th birthday.
“At Wattpad, we believe startups aren’t just about profits, they’re about giving back to communities, at home and abroad. We’ve already made a remarkable impact on millions of people’s lives around the world. Today, we pledge to join the 150×150 campaign to demonstrate our continued commitment to positive social impact,” said Allen Lau, Wattpad co-founder and CEO. “Whether you’re in the early stages or a well-established start-up nearing exit, it always makes sense to support charities that serve your users and mean something to your team. If you haven’t already joined the Upside Foundation, what are you waiting for? Join the 150×150 campaign today!”
Any Canadian startup or private high-growth company can take the Upside pledge by committing stock options or warrants that will be converted to cash at the time of an exit or IPO, and donated to a registered Canadian charity.
“I’ve always believed in giving back to the community,” said Vuk Magdelinic, CEO of Overbond. “I’m proud that we have now found a way to make Overbond’s success mean that charities in the community will win alongside us.”
To date, there have been two exits from the Upside network, including BlueCat Networks, which sold for $400 million in February 2017; BlueCat CEO, Michael Harris donated the proceeds from a portion of his stock options to the Enbridge® Ride to Conquer Cancer® benefiting the Princess Margaret Cancer Centre. The first company to exit was Understoodit, who was acquired by EventMobi in 2013 and donated their equity proceeds to the East York Learning Experience and Mentoring Junior Kids Organization. The Upside Foundation is led by a coast to coast Board of Directors and Advisory Board of industry leaders and partners with leading incubators, accelerators and investors – creating a supportive community for members to be a part of.
“People work at startups because they want to effect change, and the Upside Foundation enables startup employees to have a meaningful impact on their community,” said Mike Katchen, founder and CEO of Wealthsimple. “Our team is proud to join the 150×150 challenge.”
How Companies Can Take the Pledge
The Upside Foundation encourages Canadian companies to join those who have already taken the pledge.
1. Companies will need to fill out the online pledge form found on The Upside Foundation’s website and a representative will be in touch.
2. Once the pledge form is received, companies will receive detailed instructions on how to contribute from an ESOP (employee stock ownership plan) or a simple legal form, with flexibility depending on the stage of the company.
By Ken Yeung. Originally published on VentureBeat.
Telecommunications API provider Twilio has committed itself to setting aside 1 percent of its equity to be used to support its nonprofit foundation, Twilio.org, over the next decade. This could generate more than $10 million for the organization.
The move comes as part of the 1% pledge that was started in 2014 by Atlassian, the Entrepreneurs Foundation of Colorado, Rally Software, and the Salesforce Foundation as a means to accelerate philanthropy within businesses around the world. But it’s not just a financial transaction. The pledge includes 1 percent of employees’ time and the company’s product as well — the 1/1/1 pledge that has been heavily touted by Salesforce chief executive Marc Benioff.
Twilio’s pledge has it joining a slew of technology companies, including Weebly, Box, DemandBase, DocuSign, Galvanize, General Assembly, Lookout, Oracle, Optimizely, TechStars, Udemy, Yelp, and dozens of others.
As mentioned earlier, Twilio’s investment will be going to Twilio.org, a foundation that the company established in 2013 to provide nonprofits with access to the company’s cloud telephony APIs. Programs that have benefited from Twilio.org include Code for America, the Polaris Project and Thorn, the American Red Cross, Doctors Without Borders, and many others.
“We founded Twilio.org to provide nonprofits with the best communication technology to solve social problems,” Twilio chief executive Jeff Lawson said in a statement. “Our objective is to enable them to send a billion messages for good. By joining Pledge 1%, we will substantially accelerate our investment in that goal. We can’t wait to see what our nonprofit partners will build.”
Today’s announcement is timed to come as Salesforce hosts its annual Dreamforce customer conference in San Francisco. Salesforce’s Benioff has certainly made it a point throughout this three-day event to promote philanthropy and giving back.
By Chris Rauber. Originally published on San Francisco Business Times.
The Salesforce Foundation is hoping to inspire 500 startups to pledge 1 percent of their company’s equity, 1 percent of the founder’s personal equity and 1 percent of their product and employees’ time within the next year. The Salesforce Foundation pioneered the Pledge 1% program 15 years ago.
A new website aims to make participation in the program easier.
Atlassian, an Australian software firm with U.S. offices in San Francisco and Austin, Texas, and the Entrepreneurs Foundation of Colorado are backing the new website along with the corporate foundation of San Francisco-based Salesforce.com. The trio made the announcement to coincide with Giving Tuesday, the philanthropy world’s answer to Black Friday and Cyber Monday.
The new site, www.pledge1percent.org, explains how companies can make a pledge, complete with online tools and background information.
The Pledge 1% effort is already supported by a host of high-tech companies, including Salesforce, Google, Cotap, Foundry Group, Rally Software and Yelp, among others. Other partner organizations, such as B Lab, SV Angel, TechStars and UpGlobal have signed on as well, volunteering to encourage the startup companies they work with to take the pledge.The campaign is being administered by the Entrepreneurs Foundation of Colorado, based in Boulder.
Sydney, Australia-based Atlassian, which makes project management and team collaboration software, formalized its pledge in 2006 to donate 1 percent of equity, profit, employee time and software licenses to the effort, officials said.
“When our company was small, we made a public 1 percent pledge so that our employees and the world would hold us accountable,” said Scott Farquhar, the Aussie software company’s co-founder and co-CEO. That decision “has turned into more than $30 million” in equity contributions, he said.
Ebony Frelix, Salesforce Foundation’s vice president of programs, said the Salesforce.com-backed foundation made the Dec. 2 announcement in partnership with Atlassian, Rally Software and the Rally Foundation, and Entrepreneurs Foundation of Colorado, to stress that the campaign is not a one-company campaign but a collaborative effort among many organizations.
“We’re pooling our resources,” Frelix said, since one of the perceived barriers to other organizations signing up for the Pledge 1% program is that “people sometimes associate it with one company.”
The inimitable Marc Benioff is CEO of Salesforce.com, which launched the Salesforce Foundation in 1999. Suzanne DiBianca is president of the foundation.
To date, the foundation has provided $73 million in grants to nonprofits, and Salesforce employees have logged 743,000 volunteer hours worldwide, officials said.