Displaying the ‘Member News’ Category:

CDFI Fund Appropriations Update

June 29, 2014  |   CDVCA Ventures Blog,Industry News,Member News   |     |   0 Comment

This week, the House Appropriations Committee approved the FY ’15 Financial Services and General Government (FSGG) Appropriations bill. The Committee's bill includes $230 million for the CDFI Fund – an increase of $4 million over current year funding and $5.1 million over the President’s budget request. As the chart below shows, the House bill sets aside $177 million for the Fund’s Financial Assistance (FA) and Technical Assistance (TA) grant programs, and those set-asides are provided in bill language. In addition, $15 million is set aside for the Native American CDFI Initiative, $18 million for the Bank Enterprise Awards (BEA) program, and $20 million for CDFI Fund administrative expenses. The House Appropriations Committee did not include funds for the Healthy Food Financing Initiative (HFFI) or authority for the CDFI Bond Program, as requested by the President. This past Tuesday, June 24th, the Senate Financial Services and General Government (FSGG) Appropriations Subcommittee approved its FY '15 spending bill. While the bill has not been released to the public, Senator Udall (D-NM), who Chairs the Subcommittee, spoke during the mark-up about his commitment to "target resources to boost job creation and community development," including $230 million for the CDFI Fund in the spending bill, along with $1 billion in CDFI Fund Bond authority. A press release issued by the Appropriations Committee reported some--but not all--of the CDFI Fund set-asides, including $1 million to promote CDFI expansion into underserved areas, $35 million for HFFI, and $18 million for BEA. Additional information on the Senate's FSGG Appropriations ...

Transform
 Finance
 Investor
 Network
 Launches
 with Pledge of $556M at
 White
 House 
Event



June 27, 2014  |   CDVCA Ventures Blog,Industry News,Member News   |     |   0 Comment

Washington
 DC,
 June 
25, 
2014 Transform
 Finance
 Investor
 Network
 Launches
 With
 Pledge
 of
 $556 million “Transformative”
 Investments 
at
 White 
House
Event A
 group 
of 
leading
 private
 sector 
investors,
 at
 a 
high‐level 
roundtable
 on 
impact
 investing 
convened
 by
 the
 White
House,
  has
pledged
 $556
 million 
to
 a
 range 
of
 social
 investments
 using 
a
 novel
 investment
 approach
 centered 
on 
social 
justice 
and
community 
value
 creation. On
 June
 25,
 2014, 
the 
White 
House
 hosted
 a
round table
 on 
impact 
investing, 
during
 which
 some 
20
 new
 private 
sector
commitments 
were
 made 
to 
drive
 more
 than
 $1.5 
billion 
into 
investments 
that
 intentionally
 generate 
measurable
 social
 or
environmental 
impact

 as 
well
 as 
financial
 return. The 
group
 of 
investors 
convened 
by 
the 
Transform
 Finance
 Investor
 Network,
 concerned 
about 
a
 trend
 in
 impact 
investing 
that
stops 
short
 of
 truly
 transformative 
impact,
 pledged 
to 
invest
 in
 alignment
 with 
the 
transformative
 finance
 principles
 of: (1) 
engaging
 communities 
in 
the
 design,
 governance,
 and 
ownership 
of
 projects
 (2)
 creating 
more 
value 
for
 c ommunities
 than 
is
extracted 
by 
investors
 (3) 
fairly 
allocating
 risks
 and
 rewards
 between 
investors, 
entrepreneurs,
 and 
communities The 
group 
of 
Transform 
Finance
 Investor
 Network
 investors 
includes 
Pi 
Investments,
 Blue
 Haven
 Initiative,
 New
 Belgium
Family
 Foundation,
  ReInventure
 Capital, 
and
 The
 Working
 World.
 These
 members 
will
 invest
 across
 asset
 classes,
 geographies,
and
 verticals. “This
 is
 a 
novel 
approach
 that
 puts
 capital
 at
 the 
service
 of
 community
 needs.
 We
 hope 
that
 through
 our
 participation 
in
 the
Transform
 Finance
 Investor 
Network,
 we
 can
 help 
build 
a
 vibrant 
community
 of 
sophisticated 
investors
 who
 deeply
 believe 
in
empowerment
 and
 intend 
to 
consider 
and 
prioritize
 community
 benefit
 in 
every
 investment 
we
 make,”
said
 Brendan
 Martin,
President
 of
 The
 ...

Impact Investment Advocates Ring The Closing Bell At The NYSE

April 23, 2014  |   CDVCA Ventures Blog,Industry News,Member News   |     |   0 Comment

Representatives and guests from the U.S. National Advisory Board to the Global Task Force on Social Impact Investment rang the Closing Bell at the New York Stock Exchange (NYSE) today to raise awareness about the role of public and private innovation and entrepreneurship in solving our greatest social and environmental challenges. “Our society faces challenges that cannot be solved by government and philanthropy alone, spurring innovative approaches that harness the efficiency and discipline of markets. Impact investments deploy private capital for public good and are intentionally designed to deliver social or environmental benefits as well as financial return,” said Tracy Palandjian, CEO of Social Finance U.S. and co-chair of the National Advisory Board. Matt Bannick, Managing Partner of Omidyar Network, co-chairs the National Advisory Board with Palandjian. For more information, visit www.mysocialgoodnews.com

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 ...

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 ...

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

Community Development Investment Review Highlights New Social Impact Bonds – “Pay for Success”

Social Impact Bonds (Pay for Success) offer an attractive alternative to the status quo of paying for programs instead of results. Despite our best efforts, the poverty rate today is roughly what it was when the War on Poverty began in 1964. We are winning important battles but losing the war. A new social policy paradigm is needed. Pay for Success financing has the potential to improve the social sector’s effectiveness by rewarding programs that work, encouraging innovation, validating progress, and attracting private capital to the anti-poverty cause. As George Overholser and Caroline Whistler write in the latest issue of The Community Development Investment Review, it would “redirect and refocus our abundant resources, relentlessly, toward the innovations that demonstrate an ever-improving ability to deliver the results our communities need.” Certainly, important questions remain about Pay for Success. Equally important, however, is can we afford to pay for anything less? For full content: http://www.frbsf.org/publications/community/review/vol9_issue1/index.html

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