Venture Philanthropy Success Story

The Cystic Fibrosis Foundation transitioned from being a nonprofit to a market-based system for drug development, investing $100 million in a for-profit company that discovered a drug to cure cystic fibrosis. The foundation sold its interest in the for-profit entity for $3.3 billion, marking the largest investment return by a nonprofit in history. This success story set a benchmark for venture philanthropy, where nonprofits invest in for-profits to raise additional capital for pursuing their goals. This model aligns with Open AI's approach, highlighted by Elon Musk's realization that billions of dollars in annual investment were needed to achieve Open AI's objectives, which couldn't be solely funded by individuals but required a for-profit vehicle.