Private companies

For some social ventures simple private company models are the most suitable: they may help with raising equity, and they can formalise the contribution of a small group of founders. Their limitation is that the founder’s influence tends to decline over time (as new capital is brought in), and they cannot be indefinitely tied to a mission or a set of values. Most social ventures depend on restrictions to dividends and/or to the terms of exit as key design features to ensure investors place the venture’s values before maximising financial returns.