The Rural Business Investment Company (RBIC) is hosting a complimentary webinar on Thursday, October 15, 2015 3 - 4:15 p.m. ET, inviting participants to get an insiders view of the program. CDVCA member Meritus Ventures was the first ever RBIC and was the only RBIC prior to 2014. Today there are two RBICs (Meritus and Advantage Capital Agricultural Partners, which was licensed in 2014), with two more conditionally approved RBICs (Meritus Kirchner and Innova, both of which were conditionally approved in April 2015) and several more funds in various stages of formation. The RBIC program boosts growth and job creation in rural America by providing capital to innovative small rural businesses. The webinar invites participants to learn how the program works, potential business opportunities and why fund managers commercial banks, and other credit institutions choose to invest in these funds. Learn more
On Tuesday October 6th, Pacific Community Ventures sent out an introductory letter from their new CEO. Mary Jo Cook joins Pacific Joint Ventures from Fair Trade USA. A Mission driven leader with 25 years of experience in strategy development for the non-profit sector, Ms Cook has a track record of enabling organizational change, and driving growth. In her letter, Ms Cook expressed her commitment to empowering small businesses.
More than 1400 companies around the world are already certified B corps. This month, as the B Corp movement officially hit the UK, the Bridges Ventures released a paper to provide an investors perspective on the growing movement. Entitled “To B or not to B”, the paper aims to shed light on the opportunities and challenges presented by the B corp movement.
On September 14th, the Kauffman Foundation published a report titled “The Importance of Young Firms for Economic Growth", showing that young and growing companies have accounted for nearly all net new job creation in the economy in the eight years of recovery since the Great Recession. These results mirror past research findings showing that these firms were virtually the exclusive engines of job growth prior to the recession as well. These rapidly-growing companies are precisely the target market of community development venture capital funds, which focus on job-creating growth investments in under-invested urban and rural communities throughout the nation.
For small staffed foundations, entering the impact investment field presents a unique set of challenges. To address these challenges Arabella advisors put together "Essentials of Impact Investing: A Guide for Small-Staffed Foundations". Published on September 9, 2015, the guide offers tools, strategy advice and real world examples. Featuring 21 case studies, the guide maps out best practices to enable small staffed foundations to become skilled impact investors.
On June 18th 2015, wealth insight published Insight Report: "Impact Investments 2015 - Global Opportunities". By identifying product and service offering by banks in North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa, the report aims to provide a guide for examining market potential of these regions. Key experts in the field provide insights on current trends and future projections, while highlighting successful strategies for wealth management.
A new Seattle-based global business accelerator called Capria seeks to provide investment support and help for new fund managers backing early-stage startups. Offering everything from capital, technical know-how, and connections to other fund managers, the accelerator takes on a longer-term commitment than the typical accelerator. Focusing on funds of about $8 to $15 million, the accelerator offers a 4-week training program during which the new fund managers establish their investment thesis among other things. Learn more
Yesterday the CDFI Fund announced the winners of the FY 2015 Program award. Chosen from a pool of 356 eligible applicants, the 152 recipients were awarded a total of $160 million. Divided into two categories, Financial Assistance and Technical Assistance, the program represents an important source of capitalization for community development venture capital funds.Read more
On June 25, 2015, Cambridge Associates and the Global Impact Investing Network (GIIN) published a report titled “Introducing the Impact Investing Benchmark.” This report contains findings from the first comprehensive analysis of the financial performance of market rate private equity and venture capital impact investing funds. At launch, participants of this Impact Investing Benchmark comprised 51 private investment (PI) funds with social impact objectives. Notable findings from the report: Impact investment funds outperform conventional Private Investment funds. Between 1998 and 2004, smaller impact investment funds that raised under $100 million returned a net IRR of 9.5% to investors, outperforming comparative, similar-sized funds that did not focus on impact investments (4.5%). These smaller funds also outperformed larger impact investment funds over $100 million (8.3%) and comparative funds over $100 million (8.3%). Impact investment funds focused on emerging markets perform better than those in developed markets. Emerging markets (EM) impact investment funds had a return of 9.1% compared to 4.8% for developed markets. EM impact investment funds focused on Africa returned 9.7%. Impact investment funds are no exception to how important manager selection is to the investment process. Reinforcing manager selection and due diligence are critical in the investment process (especially the first year) for achieving superior returns and in risk management for impact investment funds. Data is scarce for both the young impact investing industry and the Impact Investing Benchmark; performance will change as new funds are added and older funds mature. The 51 PI funds in the Impact Investing Benchmark held assets of $6.4 billion ...
Today, July 30, 2015, Senators Stabenow, Shaheen, and Peters are reintroducing the Small Business Access to Capital Act of 2015 to provide another $1.5 billion in funding for the State Small Business Credit Initiative.