Reconstruct Challenge Playbook

Faulty systems have contributed to the exclusion of a significant portion of the US population from our economy.

From employment and criminal justice to our housing infrastructure and healthcare, systemic flaws perpetuate inequality and hinder upward mobility. This playbook outlines our decision-making and lessons learned as we developed the Reconstruct Challenge with venture philanthropy principles in mind.

Addressing systemic issues is not straightforward.

The problems that arise from these systems—”social” problems, like homelessness, substance abuse, and mass incarceration, are not isolated issues with clear perpetrators. Instead, they are shaped by a multitude of factors: government policies, economic structures, cultural norms, and individual behaviors collectively reinforce dysfunction–a dysfunction that has become the status quo–presenting a formidable barrier to system change. Addressing these challenges and reconstructing faulty systems requires a collaborative effort that transcends the boundaries of any single entity or sector. 

Unfortunately, many traditional funders (foundations, government agencies, and financial institutions) are risk-averse, preferring to invest in projects with immediate, measurable outcomes rather than supporting initiatives that may take time for meaningful results to develop. This aversion to risk hinders the pursuit of long-term, systemic solutions, perpetuating a cycle where short-term fixes and point solutions are prioritized over the fundamental changes necessary for meaningful, sustainable social progress. Funders who wish to address the root causes of social problems must shift their approach away from more traditional philanthropic frameworks. 

By adopting an outlook that is more risk-tolerant and long-term oriented, funders can contribute to the reconstruction of faulty systems and pave the way for a more equitable and just society. In doing so, they become active participants in dismantling the structures that give rise to social problems and shaping a future where these issues are not just mitigated but fundamentally eliminated.

The Impact of higher risk investing

We saw a gap in available risk-tolerant capital for innovators who are tackling social problems

We set about designing a program that would fill it, enabling innovators to address root causes.

We approached this development with the hypothesis that solutions to our community’s most significant challenges had been overlooked by traditional funders, and they needed someone to take a risk to test new ideas.

We designed the Reconstruct Challenge to support enduring solutions while they achieve the traction that de-risks the investment for more traditional funding sources. Larger, nationally-focused funders tend to avoid unproven solutions and generally need to see multi-market penetration before they are willing to help scale them broadly across the country with significant financial support. Reconstruct helps these riskier innovative solutions get closer to the profile of a fundable solution for these funders.

Next
Next

The Nation’s First Community Round Match Fund