Investing in Education: Venture Philanthropy and the Marketized Practice of Educational Improvement

Abstract

Many contemporary policymakers and philanthropists interested in fixing problems in urban education look to business practices and market-based reforms. Venture Philanthropy (VP), draws its practices directly from the financial sector, using strategic investment to increase the capacity and achievement of funded organizations and to promote social goals. VP firms are increasingly a part of the education environment yet currently there is little empirical data on the specific meaning, ideas, and logic through which these organizations understand and investment in education, particularly urban education. This research sought to answer the research question, what is the theory of action of a venture philanthropy firm focusing on educational improvement and what new meanings and practices does it produce in one urban district? This study collected data using embedded ethnographic methods including over 200 hours of observations, 21 interviews, and document collection creating a case study of a single education VP, the Center for Educational Advancement (CEA). Using Foucauldian disciplinary theory to analyze CEA's perspective on and practice of educational investment, this study found that CEA sought to transform the instruction and culture within its portfolio of urban schools by using the disciplinary practices of observation, judgement, and examination, thereby producing for its donors a student achievement return on investment.