Displaying the ‘Industry News’ Category:

Bridges Ventures Announces Final Close of Bridges Sustainable Growth Fund III

October 09, 2013  |   CDVCA Ventures Blog,Industry News,Member News   |     |   0 Comment

CDVCA member fund Bridges Venture has successfully completed final close of the Bridges Sustainable Growth Fund III. The fund closed at £125M, surpassing its original target of £100m, and is two-thirds larger than their second £75m fund raised in 2007. The fund will continue Bridges Ventures’ focus on the provision of growth capital to small businesses, while seeking both commercial returns and positive social impact. Through its new fund, Bridges seeks to build on its extensive track record of investment - the firm recently won "Venture Exit of the Year" in the prestigious British Private Equity Awards 2013 for its partial divestment of The Gym Group. The successful fundraise also speaks to growing interest among investors in sustainable and impact investment. New investors in the fund include the European Investment Fund and the London Pensions Fund Authority. For more information, visit www.bridgesventures.com.

CDVCA Takes General Partner Role in $45M New York State Fund

CDVCA serves as the General Partner for New York State’s “Innovate NY Fund, L.P.,” an economic development Fund of Funds, consisting of limited partnership investments into eight New York State-focused, early-stage venture funds.   The $45 million fund is a seed stage business equity fund to support innovation, job creation, and high growth entrepreneurship throughout the state. The Innovate NY Fund is supported with $35 million in State funds (allocated from the US Treasury’s SSBCI Program) and $10 million from Goldman Sachs Urban Investment Group, and will leverage up to $450 million in additional private investment. The purpose of the Innovate NY Fund is to promote technology-led economic growth in the state through targeted investments by regional venture fund managers (the “Seed Funds”) into over 100 seed and early stage companies; and to encourage additional private sector investment across the state.  Unique among state-funded venture capital programs, Innovate NY Fund recognizes that effective statewide growth must include its lower income populations.  The Fund’s investment criteria include a requirement to invest a portion of proceeds in businesses located in lower income communities, or to meaningfully employ individuals from these communities. New York’s approach has been to collaborate with private investors, which includes Goldman Sachs as a limited partner, and through an effective matching investment requirement for the participating funds.  As part of the Small Business Jobs Act signed into law in September 2010, the State Small Business Credit Initiative (SSBCI) was created under the US Department of the Treasury to provide direct support to states ...

Still Time to Ask Your Senators to Weigh In on Tax Reform and Support the NMTC, LIHTC, and HTC

July 24, 2013  |   CDVCA Ventures Blog,Industry News,Public Policy   |     |   0 Comment

Earlier this month, Senators Max Baucus (D-MT) and Orrin Hatch (R-UT), the Chairman and Ranking Member of the Senate Finance Committee, wrote to their Senate colleagues asking for comments and feedback on tax reform. In the letter, Senators Baucus and Hatch describe the “blank slate” approach they will take in reforming the tax code and the only provisions, credits, or deductions that will be continued after tax reform are those that meet: "(1) help grow the economy, (2) make the tax code fairer, or (3) effectively promote other important policy objectives." Senators have been asked to submit their comments or recommendation letters to the Finance Committee by Friday, July 26th and the submissions will not be made public by the Finance Committee. It is important that Senators hear from CDFI about the tax provisions that are critical to the community development and economic revitalization efforts in their home states – particularly the impact of the New Markets Tax Credit, the Low Income Housing Tax Credit, and the Historic Tax Credit. In an effort to encourage Senators to comment on the these tax provisions that help fuel the work of CDFI – the Coalition has drafted language on the New Markets Tax Credit, the Low Income Housing Tax Credit, and the Historic Tax Credit that CDFIs can encourage their Senator(s) to include or reference in comments they submit to the Finance Committee.

Investors’ Circle Members move $1M in 1 Month

Following Investors' Circle's Spring Venture Fair, IC members made a record-breaking $1MM in investments in the last month!  IC is proud to announce investments in the following companies: California Safe Soil, DR2, Indow Windows, and SunFunder.  These investments bring Investors' Circle's 2013 year-to-date investment total to $4MM! Registration is open for IC's FIRST Beyond The Pitch Event, October 22nd in Washington, DC! We know that  opportunities to connect, engage, and build relationships in-person are the building blocks for scaling the innovations and enterprises we need most. Our Beyond The Pitch full-day event is open to Investors' Circle members and accredited investors interested in making early-stage investments into high-growth, high-impact companies.  The event will feature presentations from 15 promising impact enterprises, ample time for networking among investors, and facilitated meetings that dive into the due diligence process!  Special thanks to our host sponsor  Greenberg Traurig! Help us spread the word!  Please forward this email to any high-impact companies in your network that you think would be a fit for our October 22nd Beyond The Pitch event in Washington, DC!  Entrepreneurs can find more information about our criteria and application process here.  Our application deadline is August 23rd.

Bridges Community Ventures Has Big News

July 18, 2013  |   CDVCA Ventures Blog,Industry News,Member News   |     |   0 Comment

The Gym - A UK Dynamo CDVCA Member Fund Bridges Ventures sold its majority stake in The Gym, a milestone deal for Bridges and its fourth successful realization in just over 12 months, following the exits of The Hoxton (9x multiple), Pure Washrooms (3.4x) and Whelan Refining (4.7x). The Gym - incubated by Bridges from concept stage and now operating from 37 sites across the UK - is a prime example of how strong commercial results and excellent social impact can go hand-in-hand. The sale generated a 50% IRR and 3.7x multiple for investors in Bridges funds, of which a minority was rolled over to retain a 25% stake in The Gym going forward, enabling Bridges investors to benefit from the future growth in the business. The Vet - Low Cost Veterinary Clinics Bridges portfolio company The Vet, a low-cost, high quality veterinary services business, has opened the doors of its first clinic in Hengrove, Bristol. With the cost of veterinary services and pet insurance on the increase, The Vet hopes to fill a gap in the market for better, more flexible and fairly-priced veterinary services. Bridges incubated the business and provided funding and working capital through the Bridges Sustainable Growth Fund III and there are plans to roll-out the model to other sites across the UK, mainly located in underserved areas. G8 Social Impact Investing Forum Bridges was honored to be part of the G8 Social Impact Investment Forum, hosted by the Cabinet Office on 6th June. The event gave Bridges the opportunity ...

Call on Your Senators to Support Tax Reform and the NMTC by July 26th

Earlier this month, Senators Max Baucus (D-MT) and Orrin Hatch (R-UT), the Chairman and Ranking Member of the Senate Finance Committee, wrote to their Senate colleagues asking for comments and feedback on tax reform. In the letter, Senators Baucus and Hatch describe the “blank slate” approach they will take in reforming the tax code and the only provisions, credits, or deductions that will be continued after tax reform are those that meet: "(1) help grow the economy, (2) make the tax code fairer, or (3) effectively promote other important policy objectives." Senators have been asked to submit their comments or recommendation letters to the Finance Committee by Friday, July 26th and the submissions will not be made public by the Finance Committee. It is important that Senators hear from CDFI about the tax provisions that are critical to the community development and economic revitalization efforts in their home states – particularly the impact of the New Markets Tax Credit, the Low Income Housing Tax Credit, and the Historic Tax Credit. In an effort to encourage Senators to comment on the these tax provisions that help fuel the work of CDFI – the Coalition has drafted language on the New Markets Tax Credit, the Low Income Housing Tax Credit, and the Historic Tax Credit that CDFIs can encourage their Senator(s) to include or reference in comments they submit to the Finance Committee. Suggested Language for Senators Drafting Tax Reform Comment Letters: NEW MARKETS TAX CREDIT The New Markets Tax Credit (NMTC) is ...

House Appropriation Committee Approves $221 Million for CDFI Fund

July 18, 2013  |   CDVCA Ventures Blog,Industry News,Public Policy   |     |   0 Comment

The House Appropriations Committee met today to mark-up the FY 2014 Financial Services and General Government Appropriations Bill. The bill approved by the Appropriations Committee includes $221 million for the CDFI Fund, which while $3.9 million less than requested in the President’s budget would allow the CDFI Fund to operate at its FY 2013 pre-sequester funding level. Of the $221 million provided for the CDFI Fund, the Committee sets aside $189 million for financial and technical assistance grants, $12 million for CDFI Native Initiatives, and $20 million for administrative expenses. The Committee does not set aside funds for Bank Enterprise Awards (BEA), Bank on USA, Healthy Foods Financing and the Committee did not include the CDFI Bond Guarantee language requested by the President. The Committee Report filed by the Financial Services and General Government Appropriations Subcommittee includes the following instructions urging the CDFI Fund to extend the reach of CDFI programs to “distressed communities” and to support qualified “minority participation” in the New Markets Tax Credit program: Territories and Rural Communities.—The Committee notes the lack of CDFIs serving the territories and rural communities. The goals of the CDFI programs apply equally to distressed communities located both near and far from financial centers. The CDFI Fund, however, establishes goals based on the composition of financial institutions that apply for grants and loans in a given year, rather than the needs of the communities in distress. Consequently, some communities in distress are not supported by the CDFI Fund because no certified financial institution serves that community. ...

CDFI Recertification Update

The CDFI Coalition sent a letter to the CDFI Fund regarding the certification/recertification process on March 21, 2013. The Coalition requested that the CDFI Fund take steps to ensure that no CDFI was de-certified without notice of potential deficiencies in their recertification applications and an opportunity to cure deficiencies. As stated in our letter, which can be found here, there could be serious and potentially irreparable harm in de-certifying a group, such as putting the group in default of Financial Assistance, Technical Assistance or New Markets award agreements, or in default of other agreements that require the entity to be a certified CDFI. In response to the Coalition’s concerns, the Fund published a Frequently Asked Questions document yesterday. The key element of that document is the Fund’s commitment to contact any applicant for recertification at least once during the review process if there are documents or materials that are deemed necessary to complete the review. The Fund has set a 90- day timeframe for the 2013 recertification process - during such time a CDFI could cure whatever the deficiency might be. However, the Fund has indicated that, in its discretion, it may not allow a cure period for certain deficiencies, such as inability to demonstrate legal status at time of application; inability to demonstrate primary mission of community development, and/or evidence of government affiliation or control. The recertification timeframe could have a negative effect on individual CDFIs with pending Financial or Technical Assistance applications in the FY 2013 funding round. ...

SJF Ventures Raises its Third Fund with $90 Million

May 06, 2013  |   CDVCA Ventures Blog,Industry News,Member News   |     |   0 Comment

SJF Ventures conducted the final closing on its third fund with more than $90MM in capital commitments, tripling the size of the previous $28MM second fund. The target for SJF Ventures III was $75MM and the fund was substantially oversubscribed at its final April closing. “We are honored that so many investors choose to join our partnership,” said David Kirkpatrick, SJF Managing Director and Co‐Founder. “We are particularly excited that a wide variety of bank, insurance, foundation, family office, pension, mutual fund, and individual investors have recognized that SJF’s impact investing strategy can yield above market financial and mission results.” SJF’s current, second fund is performing in the top quartile all US venture capital funds of its vintage year. SJF Ventures invests in high growth, positive impact companies seeking expansion capital rounds of $1MM to $10MM. SJF has invested in 36 portfolio companies over the last decade. “We realize SJF’s success is due to the exceptional results achieved by our portfolio companies such as Aseptia, BioSurplus, CleanScapes, Community Energy, eRecyclingCorps, Fieldview, Optoro, MediaMath, MedPage Today, and ServiceChannel,” said David Griest, SJF Managing Director. “We are eager to find the next set of great entrepreneurs for our third fund.” SJF Third Fund Press Release

State Budgets Overcome Deficits through Major Cuts, But Have No Plans for Reinvestment?

A National Public Radio Broadcast by Greg Allen highlights the bait-and-switch technique of massive budget cuts used only for further tax cuts (Michigan, Ohio), though some states (e.g. Florida) with upcoming gubernatorial elections plan politically strategic investments. Paul Beck, a professor emeritus of political science at Ohio State University, says that meant less money for schools and local government. "They were pretty massive cuts," Beck says. "Local governments and school districts were basically having to tighten their belts considerably. There was a substantial downturn in government jobs in Ohio, particularly at the local level." Now that Ohio has a budget surplus, the discussions between Kasich and lawmakers aren't about restoring spending to schools and local governments. Most of the money is earmarked for tax cuts. Florida — like many states — is putting much of the surplus into education. After cutting education spending by more than a billion dollars in his first year, Gov. Scott is proposing a $2,500 across-the-board raise for teachers. Scott, by the way, is running for re-election next year. To read or hear the full article: http://www.npr.org/2013/04/29/179762891/after-belt-tightening-some-states-are-back-in-the-black?ft=3&f=127088100&sc=nl&cc=ph-20130501

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