Red Idea Partners

Mar 20, 2018

By giving equity to nonprofits, startups are able to give back to the community without relying on cash-based monetary donations, as most startups are cash-strapped when they start out. “Startups aren’t meant to be writing checks to nonprofits,” said Ross Shell, founder and chief executive of Red Idea. “Investors want to see a business succeed, not writing checks to nonprofits. But imagine if Google in its early days provided 1 percent of its original shares to the American Cancer Society 25 years ago. What impact would that have had on cancer research in the U.S.? Startups can write checks for a small, symbolic amount or they can give stake in their future success to nonprofits.” Shell said Venture for America was an ideal nonprofit to give back to, as the nonprofit helps recent college graduates get jobs at startups. Talkbox recently hired a graduate to join its team. “I believe entrepreneurship and innovation are a fundamental force for good in society,” he said. “Most forms of progress on Earth comes from innovation.” Shell said TalkBox makes cell phone privacy booths that can also double as small private workstations. Companies like Google, Lockheed Martin, Toyota and Vanderbilt University are all customers. Red Idea Partners has owned stake in 14 different ventures over the last 10 years. Shell added that the group is currently launching between one and two new startups each year.