This article is part of The Future of Global Development, a series for Devex Executive Members that explores what development leaders think of the industry’s top issues.
When looking for ventures to fund, impact investors and traditional donors often consider an organization’s track record as a primary factor. But this doesn’t seem to be the case when development executives are using their own money to support innovative ideas or firms.
Our recent survey of senior executives reveals that 61 percent of respondents are more likely to donate their own money to a startup with innovative ideas but no track record, rather than an established nongovernmental organization with conventional approaches but a solid track record. Younger executives, as well as those who work at smaller organizations or in the field, were more likely to favor donating to a development startup.