In conversation with John Battelle, legendary technologist Pierre Omidyar explains the philosophy and business plan underlying his new network for investment in for-profit ventures which foster economic, social, and political self-empowerment. Applying lessons learned from his founding of eBay, this new investment strategy is based on the belief that people are basically good, and that connecting them with the right tools can build trust and opportunity.

Investors in the Omidyar Network are looking to harness the power of commerce and competition for social progress. This approach expands philanthropy beyond the traditional approach of funding nonprofits. A major lesson from the success of eBay is that commerce can be the platform upon which millions of strangers can gain trust through a transaction of mutual benefit. Omidyar provides significant capital to for-profit companies which can demonstrate a business plan in which profits depend necessarily on activities that enable social advancements through self-empowerment. Drawing on the ideas of economist Adam Smith, Omidyar proposes that, for ventures designed with the right tools in the right environment, profit itself can be a key measure of the social return on investment.

How well will this model for social investment scale? Network investors consider several factors in assessing the potential for success of a mission-based business venture. Omidyar looks for ideas built on open access and transparency to ensure a level playing field. Drawing another page from eBay's play book, he is also attracted to communications projects with the potential to connect and expand communities of shared interest. For an idea to really take hold, participants need a sense of ownership and some "skin in the game." By tying profit to social good, Omidyar thinks the potent talents of professional managers can be put to work for the benefit of shareholders, while simultaneously making the world a better place.