One of the fastest-growing private companies links its’ success to furthering social causes
In 2016 when David Berkal, CEO of Banyan Software, founded his company he envisioned it to be an alternative for fellow entrepreneurs when deciding upon their companies’ futures. To do this, Berkal set up a holding company with a buy-and-hold-for-life strategy with a permanent capital base, preserving the legacy of company founders.
“Our companies benefit from being part of a wider family of software businesses while retaining the culture and autonomy that has allowed them to serve their customers so well,” says Berkal.
Berkal’s success in founding a purpose-driven company led him to further his commitment to have an enduring, positive impact on the world. He took a major step by launching the Banyan Software Foundation having the mission to pursue a greener and more equitable future. He pledged $100 million in stock to the Foundation over the next four years, making it Banyan Software’s largest shareholder—tying the Foundation’s success to the company’s success.
“We wanted to take a bold step and make this a defining part of our identity, including at the ownership level,” said Berkal. “We’ve always focused on creating an enduring positive impact in our businesses and people but saw the opportunity to scale that impact even further”.
One of the Foundation’s first steps was giving $1 million in grants to UK-based TransitionZero and U.S.-based Merit America. The former builds open-source data and software products for energy systems modeling that help low-income countries develop and implement energy transitions. The latter is a nonprofit organization that combines online coursework with personalized coaching to help quickly re-skill low-wage workers to obtain family-sustaining careers.
“We’re deeply grateful to the Banyan Software Foundation for their generous support, which will unlock the resources to help thousands of learners move from low-wage jobs to family-sustaining careers,” said Connor Diemand-Yauman and Rebecca Taber Staehelin, co-CEOs of Merit America. “On average, our learners experience a $24,000 wage gain three or more months after completing our program, boosting their annual salary from $26,000 to $50,000.
Berkal has only just begun. Banyan Software is now also pursuing multiple internal purpose-driven initiatives. They include dedicated funds for employee learning and skills advancement, an Employee Relief Fund for those going through extreme hardship, and a volunteer time off program.
What began with Berkal creating a permanent home for software companies to retain their culture and autonomy important to their founders, the company’s success has enabled Berkal to pursue two great social causes, a greener and more equitable world.
“We believe this represents one of the largest instances in history of a technology company contributing stock to a foundation, amplifying our ability to create positive change in the world.,” says Berkal.
