Venture for America, a nonprofit organization that placed college graduates with startups to revitalize cities, has abruptly shut down. The organization terminated nearly all its employees, as announced by its CEO, Carrie Murphy. Murphy cited “economic headwinds” and a decline in venture funding for its partner companies as reasons for the closure.
Venture for America (VFA) ceased operations after helping young adults find jobs in innovation ecosystems for over a decade. The CEO confirmed that nearly all of its full-time staff, affecting 15 people, were let go. A Tuesday email from Murphy and VFA Board Chair announced the changes, which took effect immediately.
“Due to the challenging economic environment, there has been a decline in venture funding for company partners, impacting both revenue and fellow placements,” the email read. Alongside economic pressures and shifting priorities, these factors have led to persistent fundraising challenges. Murphy and the COO will stay on as part-time contractors to oversee the organization’s shutdown, aiming to complete the process by October 31.
Founded in 2011 by Andrew Yang, with inspiration from Teach for America, VFA’s instability had become increasingly apparent prior to its closure.
Venture for America closes operations
The nonprofit’s tax records from 2022 indicated revenue of $5.3 million, with substantial assets and liabilities.
Another sign of trouble appeared last October when VFA underwent a restructuring. It remains unclear what support the organization will provide to its current cohort of “fellows,” the term used for the graduates it placed. “For those in the job search process, there is no longer a requirement to work for a VFA company partner or move to a VFA city,” Murphy mentioned.
“However, we will support the connection between hiring partners and our fellows as best we can.”
Over its existence, VFA facilitated more than 950 company placements for its participants in over a dozen cities, creating a network of over 1,600 alumni. According to the organization, these alumni went on to create more than 375 companies and raised over $1 billion in venture capital. “The legacy of Venture for America is the strong community it has built,” Murphy and the Board Chair emphasized.
“The relationships, connections, and network created will continue to thrive beyond the organization’s operational existence.”
VFA had recently moved away from Yang’s initial mission but continued to place graduates in cities with the goal that their experiences with early-stage companies would lead them to start their own ventures. The organization also invested in human capital in these cities through various community events and programming efforts. This story is still developing.
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- StartlandNews.”Venture for America abruptly closes; ending fellowship that matched talent with KC startups, VCs”.