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MIT Solve Innovation Future Case Study

Overview

MIT Solve is a global initiative of the Massachusetts Institute of Technology (MIT) in Cambridge, MA with a mission to solve world challenges. Launched in 2016, MIT Solve is a tech incubator and marketplace for social impact innovation.

Overview

In 2019, MIT Solve launched the Solve Innovation Future venture fund to provide flexible, early-stage capital for social entrepreneurs through its open innovation Global Challenges that focus on sustainability, health, economics, and education.

Solve Innovation Future was set up as a DAF under the sponsorship of U.S. public charity ImpactAssets. The fund is led by Principal Casey van der Stricht and is targeting $30M from donors through tax-deductible gifts to MIT. The DAF received up to $3M in anchor funding from Founder and CEO Noubar Afeyan of Flagship Pioneering.

Source: MIT Solve

Investment Strategy

Solve Innovation Future makes seed- and early-stage investments in social entrepreneurs with a mix of equity, debt, and innovative capital. The DAF will make $100K to $250K investments for five or more companies annually that participate in their global “Solver” events. The evergreen-like philanthropic vehicle allows the Solve team to reinvest proceeds from the DAF into the next generation of social entrepreneurs.

Track Record

Solve Innovation Future (2019, $30M target) – As of June 2022, Solve Innovation Future has catalyzed nearly 4x its investment in additional investment capital toward its Solver teams.

Its portfolio includes:

  • Access Afya (Nairobi) is a social enterprise that provides high quality, affordable primary healthcare in Nairobi’s informal settlements.
  • Algramo (Santiago, Chile) is building a high-tech reusable packaging system to counter plastic waste.
  • CENTURY Tech (London) is an AI-powered platform that personalizes education and improves learning outcomes.
  • eggXYt (Jerusalem) is developing the ultrasound technology for eggs to enable a sustainable future in the livestock industry.
  • Kinedu (Monterrey, Mexico) is on a mission to improve the beginning of every small child’s story by fostering quality learning experiences at home, at school and everywhere in between.
  • Queen of Raw (NYC) enables fashion brands and retailers to buy and sell unused textiles with its global network, providing businesses a quick and easy way to secure discounted materials based on real-time location and availability while generating revenue and offloading excess stock.
  • Someone Somewhere (Mexico City) is a digitally native brand on a mission to lift millions of artisans out of poverty.

Here are more details on its portfolio companies.

Fund Structure

  • Donors: various individuals & institutions
  • Donor Advisor: MIT Solve
  • DAF Sponsor: ImpactAssets, Inc.
  • Fund: Solve Innovation Future
  • Fund Type: DAF
  • Capital Products: SAFE, convertible notes, equity, loans, redeemable equity, and revenue-based loans
  • Launch Date: May 2019
  • Target Size: $30M