How EscrowUp is Revolutionizing M&A with Philanthropy
Silicon Valley is often criticized for prioritizing profits over purpose, but one company is challenging that narrative. SRS Acquiom, a leader in M&A deal management, has partnered with Pledge 1% to channel a portion of escrow funds from mergers and acquisitions toward nonprofits—proving that business success and social impact can go hand in hand.
The EscrowUp Initiative: A Win-Win for Business and Charity
Launched in late 2016, EscrowUp has already facilitated two major transactions:
- Salesforce’s acquisition of Krux
- Envision Healthcare’s deal with Imaging Advantage
These transactions have benefited organizations like Girls Who Code, Springboard Enterprises, Endeavor, and Patriot Boot Camp—showcasing how corporate deals can drive meaningful change.
How It Works: Turning Escrow Funds into Social Good
In M&A deals, escrow accounts are standard practice. They hold funds (typically for 12–24 months) to cover potential post-closing adjustments or disputes. EscrowUp operates like a traditional escrow service but with a philanthropic twist:
- SRS Acquiom donates 16 basis points of the escrow’s annual returns to Pledge 1%.
- The funds come from SRS Acquiom’s service fees, ensuring no financial impact on the deal parties.
Paul Koenig, cofounder of SRS Acquiom, explains:
“With over $250 billion placed into private M&A escrows annually, even a small percentage can make a big difference. EscrowUp taps into this flow to support nonprofits without burdening the transaction parties.”
Industry Support and Growth
Early adopters like Salesforce—a Pledge 1% founding partner—and Envision Healthcare have set the tone. While exact donation figures remain confidential, Koenig reveals:
“Donations from the first two transactions are already in the six figures, and we expect to reach millions soon.”
Venture capital firms like Foundry Group also endorse the initiative. Seth Levine, a managing director, calls it “money out of thin air” and highlights their own commitment to donating 1% of carried interest to nonprofits.
The Future of EscrowUp
Originally an opt-in program, EscrowUp is now automatically applied to all SRS Acquiom’s bank deposit escrows due to its popularity. Koenig notes:
“No merger parties are saying no—because why wouldn’t you want to turn corporate transactions into force for good?”
With tens of millions in escrow dollars already pledged and more deals on the horizon, EscrowUp is proving that philanthropy can be seamlessly integrated into high-stakes M&A—setting a new standard for the industry.
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