Virgance ignites social entrepreneurs

Virgance-project

Can a company with a socially conscious mission make a difference while making a profit? San Francisco-based Virgance, which owns several for-profit project-based companies that organize and network consumers around sustainable causes, says it hopes it can by building itself on the intersection of capitalism and activism. “

"The key point is not, Are you a profit or a nonprofit? It’s about whether you are using the principles of capitalism to scale change,” says Virgance CEO, Steve Newcomb, who points to successful nonprofit organizations such as Kiva and Donor’s Choose that have also opted for the capitalism approach. Virgance sees itself has an “incubator” of projects that have chosen the for-profit model to drive their sustainability-driven missions forward.

“Virgance is Web 3.0,” says Newcomb, referring to a term used by industry insiders to define the relationship between consumers and the Internet. In addition to social networking (Web 2.0), which is restricted to online activity, Web 3.0 marries online networking to offline action, Newcomb says. Virgance uses the power of online social networking and takes it out into the world through its projects.

Carrotmob, a Virgance project brings together a “mob” of consumers to give mass patronage to a chosen business that pledges to make environmental upgrades with the extra cash. In what Carrotmob refers to as a “reverseboycott,” consumers reward a business for its competitive commitment to social responsibility.

1BOG (One Block Off the Grid), which Virgance acquired in November 2008, helps consumers work together to save money on the purchase of solar panels. Organizing a community of buyers that are interested in switching to solar energy on a discount, 1BOG then strikes a deal with solar panel installers who give reduced rates for bulk purchases.

1BOG now has a full-scale Bay Area campaign, operations in Los Angeles, San Diego and New Orleans, and is looking to expand into Denver and Portland, according to Brad Burton, head of 1BOG operations and development.

1BOG currently has five employees, and makes a profit from referral fees paid by solar installers in exchange for the increased business. Virgance employs 14 total workers with an additional 10-15 volunteers and contractors in its office this summer, and while it supports many projects, it is currently only bringing in money from1BOG and GO Media, a network of “green” blogs funded by advertising revenue. As of March 2009, Virgance had raised $750,000 in capital from Quest Venture Partners and other contributors.