10 BIG THINKERS FOR BIG BUSINESS

Last year Omidyar shook up the philanthropic world by converting the foundation he and his wife, Pam, established in 1998 into the Omidyar Network, which will direct money not only to traditional nonprofits, but to profitmaking businesses as well--as long as those enterprises create what Omidyar calls "positive social impact."

Omidyar says he was inspired by the lessons of eBay, which "taught 150 million people that they can trust a complete stranger," and also by his work on the board of Meetup.com, the online service that allows members to connect over some shared interest. "It occurred to me that there's a type of business that can only be financially successful if it helps make the world a better place," says Omidyar.

Unlike traditional charities dedicated to curing diseases or building museums, the Omidyar Network is a curious hybrid: part philanthropy, part venture capitalism. "It's not about giving away money or providing aid or help," says Omidyar. "I like to think of it as an investment." During the past year the Omidyar Network has invested sums ranging from $75,000 to $1 million in for-profit ventures. They include Socialtext, software that allows users to collaborate on group documents, and Grassroots Media, a Web site to promote community journalism. On the nonprofit side, it's made grants to support organizations that promote greater openness in government, voting rights and campaign-finance reform. While most of the investments have been relatively modest, they will increase as ventures prove to be profitable, says Omidyar Network president and COO Iqbal Paroo. "At that point, we will open the fire hose," he says. The network will spend $400 million over the next five years.