What Is The Entrepreneurs Foundation Of New England?
We are a non-profit organization comprised of entrepreneurs, venture capitalists, investment bankers, attorneys and bankers who have come together to encourage entrepreneurs and their emerging high tech companies to give something back to their community. EFNE was founded by Rick Burnes, co-founder of Charles River Ventures and Larry Weber, the high tech public relations innovator and CEO of Weber Shandwick Worldwide.

What Is Our Objective?
To engage entrepreneurs and their companies in philanthropy early on in their companies' paths to success.

How Does EFNE Engage Emerging Companies And Their Employees In Philanthropy?
There are two principal ways to contribute:

1. Under our Founders Shares program, companies make contributions of stock options or issued stock to EFNE early in their lives. When a participating company goes public or is acquired, the stock value is realized, and 75% of the proceeds are donated (through a donor advised fund at a community foundation)to a local non-profit recommended by the donor company.

2. We'll retain the balance of the contribution to work with participating companies to help them develop corporate community involvement programs which will permit employees to give something back to the community under the corporation's aegis. Additionally, we plan to provide entrepreneurial assistance to grant recipients recommended by donors.

Is There Any Precedent For This Approach To Entrepreneurial Philanthropy?
Yes. In 1998, the Entrepreneurs Foundation was launched in California by the leading venture capital firms: Mayfield, Kleiner Perkins and Sequoia. The brainchild of venture capitalist Gib Myers, EF has already signed up over 90 companies, liquidated stock worth more than $10 million, assisted a number of innovative non-profits and engaged over 6000 employees in corporate community involvement programs. EFNE is founded on this proven model; we know that the New England entrepreneurial visionaries who have the courage and foresight to start new ventures are exactly the kind of people who will most want to give something back to their communities.

What Benefits Does Your Company Get By Developing Community Involvement Activities With EFNE?
EFNE's program improves employee morale, helps recruit new talent, and pro-vides a positive corporate image within the community. Becoming a participating member of EFNE helps create the depth of corporate community identification which might otherwise take years to build. Employees are proud of their company's community reinvestment and the recognition it justifiably can bring.

How Much Time Is Required Of Participating Companies?
We recognize the time and resource constraints facing most start-up companies. In the first year, EFNE requires very little time to develop a corporate community involvement plan. The level of corporate community participation varies by company, and is up to each company.

How Much Equity Stock Does EFNE Get From Each Participating Company?
One half of one percent of the outstanding shares is suggested; the actual number varies with each company. Seventy-five percent (75%) of the donated shares go into a donor advised fund from which the company recommends grant recipients. Twenty-five percent (25%) of the shares support our corporate community involvement program where we will work with the company to develop its community involvement program, and also support EFNE's operations.

Does The Stock Contribution Reduce The Stock Available To Management?
No. The donated stock options do not come from the management pool; as the pool is replenished, however, everyone shares in dilution.

Doesn't A Contribution Of Pre-IPO Stock By An Emerging Company Have A Very Small Impact On The Community?
No. Quite the contrary. A participating company may contribute stock options when its valuation is low, but the ultimate value of the contribution, when realized, can make a truly meaningful impact.

Will My Company Be Asked To Give Additional Stock To EFNE?
No. We only ask that a company make a one-time upfront contribution.

How Do I Get Involved?
Call or e-mail our executive director, Terry Segal (781) 674-9050, tsegal@efofne.org; or contact Rick Burnes (781) 487-7060, rick@crv.com.