Founders First Capital Partners has launched a new impact fund called the Change Catalyst Fund (CCF).
The fund, designed in collaboration with socially responsible investment management firm Reynders, McVeigh Capital Management, provides flexible growth capital loans to support expansion and job creation at small businesses led by diverse founders. Founders First defines diverse founders as women, persons of color, LGBTQ+, military veterans, and those in underserved communities. The fund’s typical borrowers are businesses that generate USD500,000 to USD5 million in annual revenues with the potential to grow to USD10 million.
Three companies that have received support and funding from Founders First have been named to the 2021 Inc 5000 list, the publication’s annual recognition of the 5,000 fastest-growing private companies in the United States. The three companies: Blu Digital Group, JLM Strategic Talent Partners, and OnShore Technology Group are women-led — two by African American women and one by a LatinX and LGBTQ+ leader.
“At Founders First, we take great pride in providing a platform that serves groups that have often been overlooked by Silicon Valley and venture capital investors,” says Founders First Founder, Chairperson and CEO Kim Folsom.
Through coaching and peer mentorship programs, Founders First helps diverse-led businesses pursue strategies that will enable them to achieve sustainable, large-scale growth. It also helps businesses obtain the funding that can accelerate that growth.
“The business case for diverse companies is now overwhelming,” she notes. “Having a workplace that is inclusive and supports diversity of thought drives business success, and the recognition by Inc. 5000 of these three companies with diverse leaders demonstrates this. We expect that list will become increasingly diverse, as more of these companies are given the opportunity to scale their businesses.”
Chat Reynders, the Chairman and CEO of Reynders, McVeigh Capital, notes: “With more than USD100 million of our clients’ assets deployed in impact investments, we have witnessed increasing investor interest in seeking to have a greater impact, particularly on the social equity front.” He adds, “The Change Catalyst Fund enables investors to support an investment fund and businesses managed by diverse leaders, while potentially earning an attractive level of current income.”
Barbara Clarke, the founder of The Impact Seat, was one of the founding investors in CCF, and the fund’s focus perfectly aligns with the Impact Seat’s mission to support diverse businesses. “We know diversity drives success,” she says. “These companies are continually proving that you can do well by doing good. It’s also clear these businesses warrant increased attention from investors in the private markets.”
