Ford Foundation

The Ford Foundation is a globally recognized independent, nonprofit, nongovernmental organization dedicated to advancing human welfare through its mission to strengthen democratic values, reduce poverty and injustice, promote international cooperation, and advance human achievement. Based in New York City, it operates primarily as a grant-making institution rather than a traditional venture capital firm. Its financial activities are centered on deploying its substantial endowment to support organizations and initiatives aligned with its social justice goals.

While not a typical venture capital investor, the Ford Foundation does engage in significant capital deployment through its grant programs and, increasingly, through mission-related investments (MRIs). As of September 30, 2023, the foundation's endowment was valued at approximately $16.0 billion, making it one of the largest philanthropic foundations globally. In 2022 alone, the Ford Foundation paid out $607.7 million in grants to a diverse range of organizations worldwide, supporting work across various social justice themes.

The foundation's mission-related investments are a distinct form of impact investing, designed to generate both financial returns and measurable social impact. In 2017, the Ford Foundation committed to investing up to $1 billion from its endowment over a ten-year period into MRIs. These investments typically take the form of loans, loan guarantees, or equity in social enterprises and funds that address issues like affordable housing, sustainable development, and access to capital for underserved communities. Unlike venture capital, which primarily seeks high financial returns from scalable, for-profit startups, the Ford Foundation's MRIs prioritize programmatic alignment and social impact, with financial returns serving to recycle capital for future impact initiatives. Therefore, the concept of a "first cheque size" as understood in the venture capital ecosystem does not directly apply to the Ford Foundation's investment activities.