This chapter presents an innovative source of financing for social entrepreneurs, known as philanthropic venture capital or venture philanthropy. This way of financing combines access to money with strategic advice and value-added activities, provided but a group of investors, the venture philanthropists. First, the chapter reviews current challenges in foundation grantmaking. Second, it explains how social entrepreneurs can get the financing that best suits their long-term goals of achieving: (1) economic and financial sustainability and (2) social impact. Then, the current sector of philanthropic venture capital is analyzed, with definitions and key data from the market. In this section the term socially responsible venture capital is also analyzed, commenting on points in common and key differences with venture philanthropy. Finally, philanthropic venture capital practices are compared to venture capital, to understand shared practices and differences between the two models.