The CDVC Industry Timeline

The CDVC Industry Timeline

In 1994, President Bill Clinton signed the Riegle Community Development and Regulatory Improvement Act of 1994 into law, establishing the CDFI Fund. The legislation, proposed by President Clinton and championed in Congress by Senator Don Riegle (D-MI), sought to increase access to capital for small businesses, affordable housing, the availability of commercial real estate, and human development for low-income people and communities.

Today there are over 50 Community Development Venture Capital Funds (CDVC) providing Billions of dollars to entrepreneurs and small business operators in all 50 States, DC and Puerto Rico.

The transformation of the industry, and the provision of increasing access to capital throughout the US (beyond the traditional VC markets of New York, Boston and Silicon Valley) but to Rural areas, Low Income Communities and now Opportunity Zones, is reviving the engines of job and wealth creation.

Venture Capital is in short supply in Low Income Communities and Communities of Color

  • By the end of 2018, the venture industry deployed $130.9 billion in US-based startups. (PitchBook-NVCA Venture Monitor.) 76% of VC goes to just 3 states: California (53%), New York, and Massachusetts
  • Traditional VC is almost nonexistent in rural and inner-city communities
  • 1% of VC goes to Black-owned businesses and less to Latinx-owned
  • Traditional VC is available primarily to a narrow group of mostly high tech companies (high tech and media account for 85%)
  • Traditional VC continues to move upstream
  • Low-wealth communities don’t have alternate sources of equity financing

The Missing Middle of Venture Capital