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What did Scott Godfrey do with his money?

Scott Godfrey was a successful businessman who made a fortune in the tech industry. However, when he sold his company for over $100 million, he faced an important decision – what should he do with all that money? Many ultra-wealthy individuals choose to spend their money on luxury goods, multiple homes, and a lavish lifestyle. But Scott wanted to do something more meaningful with his newfound wealth.

Philanthropy

One of Scott’s first priorities was establishing a philanthropic foundation. He allocated $50 million to start the Godfrey Foundation, which supports educational and environmental causes. The foundation has donated millions to schools, colleges, and nonprofits focused on improving access to education and protecting the environment. Scott remains actively involved, directing the foundation’s mission and sitting on the board.

In addition to the foundation, Scott has given away tens of millions more of his personal fortune to various charities and causes close to his heart. He has supported organizations working on poverty alleviation, cancer research, veterans assistance, and more. Scott approaches philanthropy strategically, establishing clear goals and metrics to evaluate the impact of each donation.

Major Donations

  • $15 million to the Bay Area Education Fund to support STEM education in underserved schools
  • $10 million to the American Cancer Society for cutting-edge cancer research
  • $5 million to Mercy Corps for humanitarian aid and poverty reduction

All told, Scott has given away nearly $100 million to charity so far. As his foundation states, he is committed to using his wealth to “create opportunities for those who need it most.”

Impact Investing

In addition to direct philanthropy, Scott has allocated a significant portion of his wealth to impact investing. This involves investing in companies and funds that yield positive social and environmental impacts alongside financial returns.

Here are some of Scott’s major impact investments to date:

Investment Amount Focus
Seed funding for renewable energy startup $3 million Clean technology
Stake in microlending platform $5 million Financial inclusion
Shares in impact investing private equity fund $15 million Education, healthcare, environment

In total, Scott has deployed over $50 million into various impact investments. He takes an active role by meeting with founders and fund managers, providing strategic advice, and leveraging his network. Scott seeks investments that can deliver market-rate returns while driving positive change.

Values-Aligned Investing

The remainder of Scott’s wealth is invested across a diversified portfolio of stocks, bonds, real estate, and other assets. He has instructed his financial advisors to construct this portfolio in line with his values.

This means excluding investments in fossil fuels, weapons manufacturing, tobacco, and other sectors at odds with his principles. It also means looking for companies with strong environmental and social practices. Scott believes it is possible to invest for profit while still supporting his vision for a better world.

Portfolio Composition

  • 35% public stocks focused on technology, healthcare, consumer, and financial sectors
  • 30% bonds issued by values-aligned companies and municipalities
  • 15% real estate including residential, commercial, and REITs
  • 10% hedge funds and alternatives like private equity
  • 10% cash and money market

This portion of his portfolio is substantial, valued at over $200 million currently. While financial returns are important, Scott instructs his advisors to construct the portfolio based on his social and environmental objectives.

Local Investments

Scott has also made it a priority to invest some of his wealth locally in his home region. He believes that successful entrepreneurs have an obligation to “give back” to their communities.

Here are some of the local investments Scott has made:

  • Funding the expansion of the local science museum – $2 million
  • Investing in a fund supporting regional small businesses – $3 million
  • Financing an affordable housing development – $5 million
  • Backing local tech startups – $500,000

Altogether, Scott has deployed over $10 million into supporting nonprofit organizations, small businesses, infrastructure projects and more in his local area. He takes a hands-on approach, providing mentoring and strategic expertise alongside the capital. These investments represent his commitment to improving his own community.

Venture Capital

Leveraging his background as a successful tech entrepreneur, Scott has also become an active angel investor and venture capitalist. He has personally provided seed funding and early-stage capital to dozens of startups.

Here are some of Scott’s notable venture investments:

Company Stage Amount
EdTech startup Seed funding $250k
Mobile health startup Series A $2 million
Sustainable consumer products company Series B $5 million

In total, he has deployed around $30 million directly into early-stage companies. He also invests smaller amounts in dozens more startups annually through angel networks and syndicates.

Additionally, Scott has over $50 million invested across a number of venture capital funds that provide access to more mature startups. This generates diversified exposure to the high-growth startup ecosystem.

Strategic Support

Beyond just providing capital, Scott takes an active role in supporting the companies he invests in. He provides technical expertise and mentoring, draws on his extensive network to find talent and make connections, and opens doors through his brand name and reputation. This hands-on approach increases the chances of success for these emerging companies.

Private Equity

Scott has substantial investments across a range of private equity funds, totaling over $100 million. This provides exposure to mature private companies with strong growth potential.

His PE investments span traditional buyout funds, growth equity funds, and sector-specific funds focused on technology, healthcare, consumer goods, and other industries. The funds provide diversification and access high-return investment opportunities not available in the public markets.

Scott takes a thoughtful approach to evaluating and selecting private equity investments, working closely with his advisory team. He looks for experienced, ethical fund managers with strong track records and proven strategies for value creation.

Oversight

Scott and his advisors closely monitor all private equity investments. They review financial reporting, participate in LP meetings, and engage actively with fund managers to provide guidance and oversight. Scott believes active ownership and governance are key to ensuring investments yield strong returns and adhere to his values.

While higher risk than public equities, private equity represents a crucial component of Scott’s portfolio. His investments provide growth opportunities while supporting economic development and job creation at scale.

Real Estate

Scott has significant real estate investments, both for personal use and as an asset class within his broader portfolio.

His real estate holdings include:

  • Primary personal residence valued at $5 million
  • Vacation homes in Florida and Colorado – $3 million each
  • Commercial office spaces in major cities – $25 million
  • REITs and real estate funds – $15 million

Altogether Scott owns real estate worth over $50 million. The commercial holdings and fund investments provide diversification, income, and potential appreciation. The vacation homes allow him to spend time with family while limiting public visibility. And his primary residence is a comfortable base near his philanthropic foundation.

When purchasing real estate, Scott focuses on locations poised for growth and works closely with sustainable construction firms. While enjoying the benefits of ownership, he aims to create value and support environmentally conscious development.

Luxury Assets

Despite his focus on philanthropy and impact, Scott does allow himself some luxuries. These include:

  • A Gulfstream G650 private jet – $65 million
  • An oceanfront yacht – $25 million
  • Several luxury vehicles including sports cars and SUVs – $5 million total
  • Art collection with pieces by Warhol, Basquiat, and other major artists – $35 million

Altogether Scott allocates around $130 million to luxuries and personal “toys.” While significant, this represents a small fraction of his multi-billion dollar wealth. The Gulfstream allows convenient global travel, the yacht provides a personal oasis, the cars satisfy his love for design, and the art collection brings enjoyment while holding value.

However, Scott is mindful that flashy displays of wealth can be controversial. He strives to live fairly modestly and intentionally balances luxury with philanthropy.

Legacy Planning

With a net worth exceeding $2 billion, estate planning is crucial for Scott. He has taken several steps to ensure his assets are passed on responsibly:

  • Crafted a will leaving the bulk of his estate to the Godfrey Foundation to further its philanthropic mission
  • Set aside trusts for each of his children – $50 million each
  • Allocated $100 million to his grandchildren’s education and first home purchases
  • Gifted shares in his companies to loyal employees and partners

Scott has also communicated openly with his heirs about the responsibility of inherited wealth. He believes engaging the next generation is key to ensuring his legacy lasts beyond his lifetime.

Minimizing Tax Burden

Scott works closely with tax strategists to minimize estate taxes and maximize the assets passed to heirs and charity. Techniques include:

  • Utilizing his lifetime gift tax exemption to reduce taxable estate value
  • Implementing trusts and entity structures to reduce estate size
  • Taking advantage of charitable deductions
  • Hiring specialized legal and financial advisors to navigate complex regulations

Altogether, Scott aims to pass on his wealth in a way that upholds his values while securing his family’s future and funding charitable causes for decades to come.

Conclusion

In summary, Scott Godfrey has taken a thoughtful, values-driven approach to managing his wealth after selling his company. He has:

  • Allocated the bulk to philanthropy, impact investing, and values-aligned portfolios to drive positive change
  • Invested in local communities and provided strategic support to startups
  • Allowed some luxury expenditures while remaining relatively modest
  • Planned for an effective estate transfer to heirs and charity

This comprehensive wealth management strategy ensures Scott’s fortune has a lasting, positive impact on the world while also providing for his family’s future and supporting causes important to him. His example provides lessons for other ultra-wealthy individuals seeking to manage unprecedented fortunes in responsible ways. Scott Godfrey provides a role model for using great wealth as a tool for good.