DIVA Ventures L3C, a not-for-profit corporate venturing enterprise that has the World Business Counsel for Sustainable Development as a founding partner and for which Pillsbury has served as pro bono counsel since inception, announced its two co-founding corporate partners on April 21. With Novozymes and Royal DSM on board, DIVA took a major step towards the operation phase of its innovative effort to enable more impact investment opportunities in the developing world.

DIVA’s unique approach marries the principles of venture capital, angel funding and incubators; the aims of impact delivery; and the resources and business needs of multinational corporations to help identify and mature venturing ideas that have a high potential to deliver positive societal impact. It also brings in foundations and other non-profits, which will be able to make program-related investments or grants to support DIVA’s early stage funding. The matured ventures will provide much needed targets for impact investment capital and, ultimately, more traditional commercial investors.

DIVA will utilize a tailored version of the well-known “stage-gate” corporate venturing model, with exit options built into the process. The matured ventures can be bought out by the corporate partners or sold to impact investors or other interested parties, providing maximum flexibility for the corporate investors in terms of commitment and ownership. The proceeds can also be rolled over into new venture projects supported by DIVA.

In the near term, DIVA will continue to recruit corporate partners, mature its organization, raise additional philanthropic funding, and begin to pilot its first corporate impact venture projects. Its ultimate goal is to expand the number of high-impact venture opportunities internationally and progress the Sustainable Development Goals agreed by the United Nations in September 2015.

Pillsbury is proud to continue providing pro bono legal support. The Pillsbury team advising DIVA on this ambitious project is led by counsel Aaron Hutman and associate Dawn Murphy with support from partner Jerald Jacobs.

"DIVA is organized to bridge the for-profit, impact investment and not-for-profit worlds in a way that enables impact delivery at scale in markets around the globe,” said Hutman. “We have seen our corporate clients expand their CSR commitments, our fund and investor clients look to make positive impacts, and foundations more interested in program-related investments. We are grateful for the opportunity to support DIVA's ambitious vision and hope it helps to bring co-development and co-investment opportunities to developing countries that sorely need them.”