Reposted from Ryan Martens (Rally Software) – One Step Closer to Being the Dream.

Since the start of 2007, I have found myself repeatedly saying that I am “living the dream.” With the formation of the Entrepreneurs Foundation of Colorado this week, another piece became reality.

Although it sounds like a lofty (or maybe just plain unrealistic) goal, I started Rally to help change the world. Through the use of Software-as-a-Service (SaaS) and Agile software development methods, Rally focuses on changing the world of software to be more “green” – more efficient, less wasteful and ultimately more valuable for its end-users. On the personal side, I also hoped to change the world of social equity by bringing foundation-like giving models to start-ups and their young employees.

I believe the economic model of today is growing at the expense of our social and ecological capital – in essence, we are borrowing from our own future. During the early days of Rally, I was introduced to sustainable business models from Paul Hawken, The Natural Step for Business by Brian Nattrass and Mary Altomare, Lester Brown and Peter Senge. However, it was the vivid Conservation Economy models at EcoTrust that stick in my mind. They help paint a vision of what an upgrade to a sustainable model could look like. The Conservation Economy model balances and reinforces the economic, social and environmental capital. My hope and motivation is to help this model emerge. To me, the Entrepreneurs Foundation of Colorado is effectively working to enact the patterns of social equity and civic society from the EcoTrust model.

Through the hard work of Brad Feld, Mike Platt, and The Community Foundation of Boulder County, the board of the Entrepreneurs Foundation of Colorado was able to make a major simplifying enhancement to Rally’s original 1% fund concept from 2003. As a result, we have approximately 1% of the Series A equity from five rapidly growing Colorado startups set aside to endow Colorado’s communities. In addition to equity from the founders, the Entrepreneurs Foundation of Colorado model gets endowment capital from early investors too. As a board, we also continue to explore ways for individual employees to participate. I found in my last company, it was hard to encourage giving at the time the company was sold. With the Entreprenuers Foundation of Colorado model, we are having the social endowment conversation during the formation stages of the company and with all the stakeholders, including investors and employees. This timing change is huge and will impact a positive change that will should increase the philanthropic giving rate in our “start-up crazy” community.

In the case of Rally, the philanthropy discussion has translated into a core value of the company. “Giving Back to our Communities” is one of our five core values. In addition to our Entrepreneurs Foundation of Colorado equity endowment, we have a goal of donating 1% of our time to non-profit organizations. We also hope to follow the 1% of profits model made famous by folks like Marc Benioff of Salesforce.com in his book Compassionate Capitalism, when we become profitable.

Thank you to everyone who made this happen. For me, this is a personal victory and one of my early goals in founding the company. Please contact me or the Entrepreneurs Foundation of Colorado for more details about this program. I am glad to help any founder work through the issues to make this part of their start-up.

Posted in: Companies