CDFI fund opens 2015 Round of New Markets Tax Credit Program

October 22, 2015  |   CDVCA Ventures Blog,Industry News   |     |   Comments Off on CDFI fund opens 2015 Round of New Markets Tax Credit Program

On Wednesday October 21, 2015 The CDFI fund officially opened the 2015 round of the New Markets Tax Credit Program (NMTC Program) through the release of the Notice of Allocation Availability (NOAA). The NMTC program channels private sector capital into struggling communities by providing tax credits to taxpayers who make equity investments in Community Development Entities (CDEs). The CDEs then employ the capital raised into businesses and projects in low-income communities. To date, the CDFI Fund has given out 912 awards to CDE’s. These awards amounted to $43.5 billion in tax credit allocation. To learn more about deadlines and the application steps, the CDFI fund has posted detailed information on the NMTC program page.

Wharton Social Impact Initiative report on the financial performance of impact investing

October 20, 2015  |   CDVCA Ventures Blog,Research   |     |   Comments Off on Wharton Social Impact Initiative report on the financial performance of impact investing

On October 8th 2015, as members of the impact investing and social entrepreneurship field gathered for the SOCAP event Wharton Social Impact initiative used the opportunity  to launch their first-ever report on the financial performance of impact investing. The report, titled Great Expectations: Mission Preservation and Financial Performance in Impact Investing suggests that investors may not need to expect lesser returns as a tradeoff for social impact. The result of two years rigorous research, the report looks at successful exits from impact investment funds in order to examine the balance between financial returns and mission preservation.

GIIN Report on Scaling Community Development Investments

October 20, 2015  |   CDVCA Ventures Blog,Research   |     |   Comments Off on GIIN Report on Scaling Community Development Investments

On October 19th 2015, The Global Impact Investing Network (GIIN), released a landscape study of the US Community Impact Investment field. Titled Scaling U.S. Community Investing: The Investor-Product Interface, the report provides insight into the barriers and opportunities to increasing investment. In the United States, investments that seeks to generate financial returns while delivering social benefits marginalized communities while have existed for a decades. The investments are executed through a range of actors including loan funds, banks and credit unions, and other financial institutions. Over 900 such product providers are certified as Community Development Finance Institutions (CDFIs) by the U.S. Treasury. In spite of the wide range of actors involved, the USCI field has not yet managed to scale its potential. The .Scaling U.S. Community Investing report explores why, while providing helpful recommendations for how to engage investors and improving investment products.

BlackRock launches Social Impact fund

October 16, 2015  |   CDVCA Ventures Blog   |     |   Comments Off on BlackRock launches Social Impact fund

In October of 2015, BlackRock, Inc. announced the launch of the BlackRock Social Impact fund. Led by Black Rocks Scientific Active team, the BlackRock Impact Fund consists out of equity securities in companies targeting competitive market returns and aggregate social impact outcomes. The fund arrives at a time when impact investing is gaining traction as investment banks attempt to meet an increasing demand for profitable investments that generate social benefits .A few months prior, Bain capital followed announced the launch of a similar impact fund led by former Massachusetts governor Deval Patrick. Other major financial firms such as JP Morgan Chase, Morgan Stanley, HSB, Citi and UBS have launched similar initiatives, assigning entire units to social impact investing. The development reflect increased belief in the business case for the generation of financial returns alongside social value.

Omidyar releases report on early stage risk capital in emerging market

October 16, 2015  |   CDVCA Ventures Blog,Research   |     |   Comments Off on Omidyar releases report on early stage risk capital in emerging market

On October 7, 2015, Omidyar Network published a report named “Frontier Capital: Early Stage Investing for Financial Returns and Social Impact in Emerging Markets”. The report offers a strategic guide to how investors can achieve financial returns and social impact through early stage risk capital in emerging markets. Drawing from data analysis and interviews with top investors, report highlights investment opportunities while offering insight to which investment opportunities are best for particular portfolios.