April 26, 2024

A Philanthropy Reboot in Silicon Valley

LAURA ARRILLAGA and Marc Andreessen are practically a royal couple around here. But when they met, on a New Year’s Eve date in 2005, Ms. Arrillaga didn’t care that Mr. Andreessen had made a fortune in Silicon Valley.

She cared whether he was giving money away. “One of the first questions I asked him on the night we met was what he was doing philanthropically,” she recalled.

Not your usual flirtation, but also not your usual romance. She is the daughter of a real estate billionaire and ended up marrying an almost-billionaire: Mr. Andreessen, co-founder of Netscape.

Yet the question she posed that evening still resonates. She is encouraging tech titans like her husband to become as famous for giving money as they are for making it.

Stars here often get rich in their 20s, but the tech industry over all has been criticized as being stingy when it comes to public charity. Some executives, like Bill Gates, wait until they retire to become active philanthropists. Others, like Steve Jobs, may not give much publicly during their lives. And while there is evidence that the valley is more philanthropic than it seems, Ms. Arrillaga-Andreessen, 41, says more could be done.

“The word ‘philanthropy’ brings up an image of somebody who’s had an illustrious career, has retired and is giving to highly established institutions that may or may not have ivy growing up their walls,” she says. “I personally have felt the need to give philanthropy a reboot.”

While attending the Stanford Graduate School of Business, she created a business plan for an organization that would teach philanthropy and make grants using strategies borrowed from the venture capital industry. The group, SV2, now has 175 donors who have financed 35 early-stage nonprofits over 13 years and last year gave away almost $500,000.

Ms. Arrillaga-Andreessen has taught a Stanford class on strategic philanthropy for 11 years and is on the board of her parents’ foundation. She started a center at Stanford to connect academics and nonprofits, and this fall published a book, “Giving 2.0: Transform Your Giving and Our World.”

But her most powerful weapon may be her personal cachet. Her father is John Arrillaga Sr., a commercial real estate developer who transformed this area from farmland into techdom’s epicenter. Her mother, Frances, was a philanthropist. Today she and Mr. Andreessen make a glamorous pair. They live in a grand home filled with abstract and pop art she selected. (She has two degrees in art history.)

Ms. Arrillaga-Andreessen has the ear of billionaires. She advised Mark Zuckerberg, founder of Facebook, and his girlfriend, Priscilla Chan, on their $100 million donation to Newark public schools, and is working with Dustin Moskovitz, another Facebook founder, and his girlfriend, Cari Tuna.

She is also close friends with   Laurene Powell Jobs, Mr. Jobs’s wife, who many assume will take responsibility for the family’s philanthropy.

Meg Whitman, the former eBay chief and gubernatorial candidate who now leads Hewlett-Packard, has taken advice from Ms. Arrillaga-Andreessen on her family’s giving. “What’s different here in Silicon Valley is people recently have made a significant amount of money much earlier in life,” Ms. Whitman said, “and I think Laura is beginning to change the dynamic here.”

Ms. Arrillaga-Andreessen said she was drawn to philanthropy because of her mother’s early death from cancer. “That inspired me to make a commitment to myself and to her and to God to live a life of service,” she said.

Philanthropy is more meaningful, she says, if people follow their passions but also do intensive research and evaluation.

Bradford K. Smith, president of the Foundation Center, a research organization, said: “This is a field that can run aground on the shoals of being excessively personal and anecdotal or being excessively strategic and analytical, and she weaves that middle ground in a way that speaks to a lot of people.”

Her philosophy fits into the Silicon Valley gestalt. When entrepreneurs, engineers and investors here give to charity, they are most comfortable with the strategies they apply in their day jobs. The Omidyar Network, for instance, started by the eBay founder Pierre Omidyar and his wife, Pam, uses a market-based approach to invest in for-profit companies and give grants to nonprofits. So does the Skoll Foundation, started by Jeff Skoll, eBay’s first president, which finances social entrepreneurs by using the same criteria that venture capitalists use to invest in start-ups. Nonprofits like Kiva, DonorsChoose.org, Samasource and Causes use the Internet to connect people in need with donors, jobs or supporters.

Such endeavors have failed to silence critics who say Silicon Valley isn’t generous enough.

“Society can’t wait,” said Leslie H. Wexner, founder of Limited Brands, who says he gives 10 percent of his time and pretax income to the United Way, Ohio State University and other causes. “It’s sad there are so many entrepreneurs, business successes and venture capitalists who give no thought to society.”

Others here say they are too busy building businesses when they are young to focus on charity, and view their products as their contributions to the world.

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Homework Help Site Has a Social Networking Twist

“Back then, no one owned a laptop, there was no Internet in the dorm rooms. So everyone in my class would be working in the computer lab together,” she said. “But all the guys would be communicating with each other, getting help so fast, and I would be on the sidelines just watching.”

The experience as a young woman in that culture formed the foundation of her start-up in Silicon Valley, Piazza. Ms. Nath, who was the first woman from her hometown to attend the prestigious engineering school and later escaped an arranged marriage to become an entrepreneur, conceived of the site for homework help in 2009 during her first year at Stanford Graduate School of Business.

Students post questions to their course page, which peers and educators can then respond to. Instructors moderate the discussion, endorse the best responses and track the popularity of questions in real time. Responses are also color-coded, so students can easily identify the instructor’s comments.

Although there are rival services, like Blackboard, an education software company, Piazza’s platform is specifically designed to speed response times. The site is supported by a system of notification alerts, and the average question on Piazza will receive an answer in 14 minutes.

“The whole idea of Piazza stems from the dynamics that I observed at I.I.T. From the sidelines I saw how effective it was to get immediate help, from peers in the same room,” Ms. Nath, 30, said.

Piazza, the Italian term for a public square, is part of a growing group of technology start-ups hoping to disrupt the education market. Its peers include Kno and Inkling, two platforms for interactive, digital textbooks. The trend has also given birth to its own Silicon Valley-based incubator, Imagine K12, which announced its first batch of investments in June.

“Education is a big focus area for us. You’re going to see big fundamental shifts in the way education is performed,” said Aydin Senkut, an investor in Piazza who made his fortune as an early Google employee. “With Piazza, it’s about turning data into actionable intelligence. We want to empower people to ask and answer questions, and we’re going to measure every aspect of it.”

Piazza’s own metrics are promising. The average user, according to the company’s data, spends two to three hours a day on the site. The company has just raised $1.5 million in financing from several prominent Silicon Valley backers, including Sequoia Capital, Ron Conway and Mr. Senkut, the founder of Felicis Ventures.

Relying heavily on word of mouth, Piazza has expanded from roughly three colleges to more than 330 in the last year. At Stanford, the first to start using the service, more than half of the undergraduates are registered users. As in the case of Facebook, the wildly popular social network that sprang from a Harvard dorm room, the close-knit nature of college campuses has helped accelerate the adoption of Piazza.

Jennifer Rexford, a computer science professor at Princeton, started using Piazza for her programming systems class last semester. The platform, which replaced the traditional classroom e-mail list, helped her reduce her office hours and respond to student questions faster. It also turned into an unexpected resource for grading; at the end of the semester she used Piazza’s statistics on participation to reward the most “helpful” students.

“Piazza gave the students a community, especially in the middle of the night, when the instructors were sleeping,” Professor Rexford said. “The students were more interactive in general, and it was a time saver all-around.”

Despite its early success, Piazza is still struggling to increase its adoption and find a road to profitability.

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