Small Impact Investment Funds Outperform Conventional Funds of the Same Size

July 31, 2015  |   CDVCA Ventures Blog,Industry News,Research   |     |   Comments Off on Small Impact Investment Funds Outperform Conventional Funds of the Same Size

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 ...

Reintroduction of Small Business Access to Capital Act .

July 30, 2015  |   CDVCA Ventures Blog,Public Policy   |     |   Comments Off on Reintroduction of Small Business Access to Capital Act .

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.

DC Community Ventures Provides Quasi-Equity Loan to JRINK

July 24, 2015  |   CDVCA Ventures Blog,Member News   |     |   Comments Off on DC Community Ventures Provides Quasi-Equity Loan to JRINK

DC Community Ventures (DCCV), a member CDVC fund based in Washington DC, announced that it has provided $400,000 in revenue-based financing to support the growth of JRINK. JRINK is a leading cold pressed drink company offering a wide selection of healthy drinks to the nation’s capital region.  JRINK will use the capital for additional locations, technology investment and better sourcing. “DC Community Ventures is committed to supporting JRINK’s continued growth,” stated Candler Young, co-Managing Partner for DC Community Ventures.  “We were attracted to JRINK’s impressive management, current financial performance, product offering and commitment to provide jobs and management opportunities for women.” 87% of JRINK’s current employees are females, the vast majority of whom come from minority backgrounds. “We’re excited for the future of health & wellness; we believe that the food we consume should be natural and simple,” said Jennifer Ngai, co-founder of JRINK. “With the support of DC Community Ventures and our dynamic team, we believe JRINK is well-positioned to become a major player in the industry. We are thrilled that DC Community Ventures shares our mission for better living.” Read more >>

Senate Appropriations Committee Passes Financial Services and General Government Bill

July 24, 2015  |   CDVCA Ventures Blog,Public Policy   |     |   Comments Off on Senate Appropriations Committee Passes Financial Services and General Government Bill

Yesterday, (July 23, 2015) the Senate Appropriations Committee reported out a Fiscal Year 2016 spending bill for Financial Services and General Government which included appropriations for the Treasury Department and the CDFI Fund. The Committee's reported bill included a level of $221 million for the CDFI Fund--an amount $9.5 million below the FY 2015 level and $12.5 below both the President's Fiscal 2016 Budget request and the House request of $233.5 million. The Committee’s draft report raises questions about the applications and awards process, lack of transparency in the Fund’s programs, and the ability to verify investment impacts. It directs the Fund to establish clear reporting requirements and to collect data on the impact of Fund on underserved populations and communities. The report also directs Treasury, in designing programs, to take into consideration the challenges of rural and non-metro communities and encourage the Fund to improve the geographic diversity of its award recipients. Read the draft report >> - The House and the Senate did not set aside any funds for Healthy Foods Financing, though the Senate did not rule out the use of FA/TA for Healthy Foods in their report language. - The bulk of the cuts came from FA/TA, which is $14.5 million below the House level. The Senate also provided $1 million less than the House for Native Initiatives, but they added an additional $3 million for BEA compared to the House. - Finally, whereas the House did not include additional authority for the CDFI Bond Program, the Senate included $750 million, the level provided ...

Call Your Senator on Appropriations for the CDFI Fund

July 22, 2015  |   CDVCA Ventures Blog   |     |   Comments Off on Call Your Senator on Appropriations for the CDFI Fund

The Senate Appropriations Subcommittee on Financial Services and General Government today approved a FY2016 funding measure that prioritizes national programs to enforce U.S. laws, spur small business growth and maintain a fair and efficient judicial system. Subcommittee approval of the FY2016 Financial Services and General Government Appropriations Bill clears it for committee consideration on Thursday. Majority Press Release >>   The Subcommittee bill recommends a level of $221 million for the CDFI Fund. This amount is $9.5 million below the current rate and $12.5 below the Fiscal 2016 Budget request.The CDFI Coalition urges everyone to call their Senator to urge a restoration of the reduction and support for the CDFI Fund’s budget request. The full Appropriations Committee is scheduled to mark-up the FY 2016 bill tomorrow morning at 10:00 am (eastern). Please make your call today. View the list of the Members of the Appropriations Committee. Key points: The Community Development Financial Institutions Fund (CDFI Fund) was established within the U.S. Department of Treasury in 1994  to promote community development in economically distressed urban and rural communities by investing in and growing Community Development Financial Institutions( CDFIs) across the country. Since 1994, the CDFI Fund has awarded more than $2 billion on a competitive basis to CDFIs, including Native American CDFIs, small and emerging CDFIs and financial institutions through the BEA Program; In FY 2014, CDFIs made over 28,000 loans or investments totaling nearly $3 billion, financed over 12,000 small businesses and over 25,000 housing units and created more than 35,000 jobs; A reduction of the ...

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