It was concern for Hawaii’s environment, economy and farming system that inspired Brett Jacobson to launch Hawaiian Ola, a maker of healthy beverages, in 2012. Jacobson, a farmer who previously ran a biofuel company, wanted to start a business that could help Hawaii’s struggling farmers—the average farmer in makes about $15,000 a year, according to the […]
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Locavesting.com - A book, a movement... now a media site! News, analysis and resources focused on the intersection of community + financial innovation. Founded by Amy Cortese. @Locavesting
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A New Credit Union in Maine Will Fund Sustainable Food and Farms
A new credit union is hoping to fill a funding gap in Maine for small scale, sustainable farming and food production. Called Maine Harvest, the credit union is in a final fundraising push to reach a $2.4 million capitalization, at which point it can apply for a charter. It is expected to open in early 2019. […]
A Place-Based Impact Fund Debuts in Ontario
Impact investors are increasingly gravitating to place-based investing. The latest example: a new impact investing fund in Canada that will focus on loans to social and environmental enterprises in Southwestern Ontario. The VERGE Breakthrough Fund, as it is called, also underscores the willingness of impact investors to experiment with new approaches. The fund was created by VERGE […]
Crowdfunding, Guerrilla-Style. Lessons From Jolene’s First Cousin.
When Guerrilla Development opened up crowdfunding for its latest project, a two-building mixed-use development called Jolene’s First Cousin, the team figured there would be strong demand. An earlier project, the Fair-Haired Dumbbell (they have a penchant for quirky names to go along with their iconoclastic buildings), raised $1.5 million from 121 investors in eight months, using Regulation A. […]
Women Founders Are Benefiting From Crowdfunding, but Where are the Women Investors?
Investment crowdfunding is beginning to fulfill its promise of democratizing investment and access to capital. While women entrepreneurs are still outnumbered by men on most crowdfunding sites, their ranks are steadily growing. At Republic, a Regulation Crowdfunding portal that emphasizes women-owned ventures, 8 out of 13 businesses currently raising capital are women-owned. And on investibule, a platform […]
Grameen America Launches New Impact Investing Fund
Microlender Grameen America is upping its game in impact investing. The U.S.-based microfinance organization marked its ten-year anniversary last month by announcing a new $11 million impact investing fund, the first in what it said will be a series of new funds. Called the Social Business Fund, it’s aimed at providing additional money to women entrepreneurs […]
Community Foundations Go All-In on Place-Based Investing
Two years ago, Baltimore Community Foundation was working to build race equity into its selection process for investment managers when a question was raised. “We asked, ‘Why are we not considering local impact investing that could specifically address race equity and lack of access to capital for communities that have been shut out of wealth opportunities for […]
Regulation Crowdfunding Market Growing at Impressive Clip, Says Report
It’s time for a crowdfunding update. Regulation Crowdfunding closed out its second calendar year, and the folks at Crowdfund Capital Advisors (CCA) analyzed the data recently in a report for the S.E.C. While still in its infancy, the investment crowdfunding market is growing at a fast clip and represents a viable capital-raising alternative for small and mid-sized […]
Impact Investing Marketplace ImpactUs Shuts Down
ImpactUs launched last spring with a splash. Hatched out of the CDFI world and funded by heavyweights including the Ford and MacArthur foundations, the impact investment marketplace promised to bring new ease to connecting investors with vetted funds as well as direct investments in social enterprises. Its goal: $1 billion in transactions over five years. But less […]
For Real Estate Lender Groundfloor, It’s Slow and Steady and Open to All
Real estate has been one of the hottest areas of crowdfunding, although most of it is focused on wealthy “accredited” investors who put money into funds, known as REITs. (And let’s face it, accredited investors don’t lack investment options!) Just two platforms allow direct investing by unaccredited investors. One is Pittsburgh-based Small Change, which uses the […]
From Sundial and Unilever, an M&A Trend We’d Like to See More of
It’s been a busy few months for Richelieu Dennis, the founder of Sundial Brands. After selling Sundial, the personal-care products company he founded, to Unilever in late November, he kicked off 2018 by buying Essence, the storied black culture magazine, from Time Inc., returning the magazine to black ownership. “I’m very focused on giving back, investing and growing my community,” […]
Is it Time to Finally Change Your Bank?
As the stock market reaches giddy new highs, it’s worth noting that it was just 10 years ago that a mortgage bubble and risky behavior fueled by the nation’s largest banks brought the economy to its knees. That experience—along with a backlash against the high, often unscrupulous fees charged by big banks—prompted many people to […]
More Business Are Heeding the Call to be a Force for Good
Climate Change. Inequality. Political dysfunction and divisiveness. These are some of the monumental challenges we face in the year ahead. One encouraging note is that businesses are increasing stepping up and embracing the role of business as a force for good. The most visible sign of this is the B Corp. movement. Since its beginnings […]
Entrepreneurs: Looking to Raise Capital in 2018? Do This First.
Tired of bootstrapping and ready to raise money to expand your business this year? Congratulations. That’s the first step toward achieving your dreams. Too many of us, especially women, constrain our business’ potential by scraping by on a tight budget or maxed out credit cards. But before you dive in, it pays to get really […]
In Toronto, a Long-Awaited ‘Social Stock Market’
Social impact investment platforms are cropping up to help connect investors with investment opportunities. The latest, a platform for accredited and unaccredited investors called Social Venture Connection (SVX), recently launched in Toronto. An earlier version of SVX, introduced four years ago, served accredited investors only. “We really see this as a game changer for impact investing in Canada,” […]
Why Locally Owned Shops Deserve Our Business the Rest of the Year, Too
Americans are voting with their dollars. Sandwiched between the frenzy-inducing duo of Black Friday and Cyber Monday, Small Business Saturday has quietly become a force. Last year on Small Business Saturday, an estimated 112 million Americansspent a combined $15.4 billion at independent neighborhood retailers and restaurants, up 13% from 2015. The figures are not in yet […]
Transform Finance: Bridging the Worlds of Finance and Social Justice
Impact investment has the potential to transform economies and societies, say its advocates. But the growing field is littered with examples of good intentions gone wrong—often the result of a “top-down” approach. How can impact investors avoid unintended consequences and ensure that their investments are aligned with the goals and needs of the people and […]
NYC Will Invest in Local Women Entrepreneurs on Kiva
Women entrepreneurs of New York: your city wants to invest in you. Under a new program, called WE Fund: Crowd, when women entrepreneurs create a crowdfunding campaign on Kiva.org, the city will kick in the first 10% of their goal, up to $1,000. New York City officials hope to support at least 500 women-owned businesses over three […]
A New Credit Union Will Focus on Clean Energy
Worried about climate change? Want to do more to support the spread of renewable energy? There’s a new credit union designed for people like you. The Clean Energy Credit Union is a new federally chartered credit union with a mission to help speed adoption of renewal energy by making it more broadly affordable. It was founded by […]
Meet Impact America: A ‘Best for the World’ Fund
Every year, B Lab, the nonprofit that certifies B Corps, celebrates “Best for the World” companies—those that score in the top 10% of B Lab’s Impact Assessment. They also analyze investment funds. This year, 28 funds representing $1.3 billion in assets under management made the list of “Best for the World” funds; eight of them US-based. One […]
New Products Bring Impact Investing to the Masses
Many individuals would like to know that their investments are doing some good in the world. One recent survey found that 75% of investors were interested in impact investing. But the $114 billion impact investment market has traditionally been the domain of foundations, institutions and wealthy individuals. That’s changing. “We are at a tipping point,” says Dorrit Lowsen, […]
The Local Crowd: Building a Crowdfunding Ecosystem Across Rural America
Laramie, Wyoming may not be the first place you would look for an innovative experiment in digital age economic revitalization. And at first glance, Diane Wolverton and Kim Vincent might not fit the image of change agents. But the pair has been quietly building a crowdfunding ecosystem across rural America that is helping communities lift […]
Will Chicken Soup for the Soul’s Reg A Inspire?
If you were vacationing in late August, you might have missed a notable milestone in the young annals of crowd investing: the IPO of Chicken Soup for the Soul Entertainment, which raised $30 million in four weeks using Regulation A+. Not only is it one of the best known brands and social enterprises to date to […]
Is it Time for State-Based Crowdfunding to Shine?
What do Alaska, Florida, Texas and Vermont have in common? They’re among the 34 states that have passed state-based crowdfunding laws. When it comes to crowdinvesting, most of the attention goes to the JOBS Act, the 2012 federal legislation that gave us Regulation Crowdfunding, Regulation A+ and other provisions that make it easier for small companies […]
Innovators Face Challenges in Breaking Down Barriers to Capital for Underserved Entrepreneurs
In just a few short years, MORTAR, a small business incubator in Cincinnati, has made impressive strides in helping longtime residents in fast-gentrifying neighborhoods start businesses and grow in tandem with their neighborhoods’ fortunes. Since 2014, the incubator has expanded from its original location in Over-the-Rhine to include three other Cincinnati neighborhood programs as well […]
Crowdfunding and The Investment Company Act of 1940
One of the bugbears of investment crowdfunding is the fact that the laws do not allow special purpose vehicles—legal structures that allow investors to be pooled into a single entity, which streamlines investor communications and management. You also cannot crowdfund an investment fund. That said, there are exceptions to every rule. Real estate crowdfunding platforms […]
As Regulation Crowdfunding Turns One, Progress For Women and Minority Entrepreneurs
As its first full year draws to a close, Regulation Crowdfunding is making progress in breaking down barriers to capital for a wide range of entrepreneurs. But the flow of capital to women, minorities and rural entrepreneurs who stand to benefit the most from the new law is still just a drop in the bucket. […]
For Impact Investor Kristin Hull, There Are Many Ways to Effect Change
The California Bay Area has a well-developed impact investing ecosystem. But trace any one initiative, and chances are it will lead back to Kristin Hull. A Bay Area native and former educator, Hull drew on her insights from education, grad school and the family investment business to become an influential voice and leader in the […]
Impact Investing Marketplace ImpactUS Launches First Four Offerings
Impact investors often complain they can’t find enough viable social enterprises to invest in. And entrepreneurs bemoan a lack of available funding. A recently introduced online impact investing marketplace hopes to address that problem. ImpactUs, a Washington, D.C.-based platform, aims to provide a place where investors can find out about, research and connect with funds, […]
A Fund Where Investors and Homeowners Both Win
The mortgage crisis might seem like a distant memory, but in some ways, American families are more vulnerable than ever. More than 83,000 new families are impacted by foreclosure every month. Nationwide, one in every 200 homes goes into foreclosure. Jorge Newbery is out to change that. His company, American Homeowner Preservation (AHP), buys distressed mortgages […]
What’s a Successful Crowdfunding Exit, Anyway?
Exits. The stuff that crowdfunding investor dreams are made of. Or not? A story we ran recently has prompted us to think more about this topic. It was about the acquisition of Scotty’s Brewhouse, a mini-chain of midwestern brewpubs that is one of the few crowdfunded companies (in this case through Indiana’s intrastate exemption) to […]
Three Women-Owned Startups That You Can Invest In Today
Women entrepreneurs are at a disadvantage when it comes to raising capital for their businesses. They’re turned down more often than men and, when they do raise money, they raise smaller sums. (It’s a good thing they know how to do more with less). That’s starting to change, as new funding options that bypass the […]
Impact Investing Rise Good News for Women and Benefit Corps
Impact investing is expanding, and that is creating new opportunities for social enterprises, including Benefit Corporations, women-led firms and community-based ventures. Those are some of the implications of a recent study conducted by the Forum for Sustainable and Responsible Investment (US SIF) Foundation. “There are encouraging signs for social entrepreneurs,” says Meg Voorhes, director of research for […]
A Progressive Investor’s Action Guide for the Next Administration
Concerned about the direction of the country? Make your voice—and money—heard, argues financial advisor James Frazier in this guest post. Now that the 2016 presidential election is in the history books, the rough outlines of the next few years are starting to become a little clearer. We can reasonably expect a federal government with less […]
Slow and Steady Does it for Regulation Crowdfunding
It wasn’t quite the fireworks that some had hoped for, but Regulation Crowdfunding closed the year with a respectable showing. In 2016, 186 companies launched Reg CF campaigns, attracting $19 million in capital commitments, according to year-end data compiled by Crowdfund Capital Advisors (CCA). Investor interest and investment have increased steadily since the law went […]
Crowdfunding: What’s in Store for 2017?
Year-end predictions are always a dicey game, and that’s especially true as we close out a tumultuous year that turned conventional wisdom (and decorum) on its head. But there’s one thing we can say with a modicum of assurance: crowdfinance will continue to pick up steam in 2017, especially in a deregulatory environment. At Locavesting, […]
Four Ways to Create a Community-Scale Investment Fund in 2017
Community capital is about empowerment of communities. It is a set of strategies that allows ventures to raise capital from their ideal investors within their own community, allows anyone of virtually any economic class to invest in their community, and allows communities to build wealth though a cycle of investment, growth, profit, and reinvestment. Community […]
Community Capital: Impact Investing, By and For the People
There’s a refrain we’ve been hearing recently at gatherings of community organizers: “Nothing about us without us is for us.” While these words echo a centuries-old Latin slogan (“nihil de nobis, sine nobis”), they reflect a profound truth as relevant today as it has ever been. Their meaning is something like this: “Don’t try to […]
Venture Funding With a Twist: Founders Have to Give Back
Social entrepreneurship and venture capital are often an uneasy fit. The emphasis on fast growth and outsize returns can push founder to stray from their mission. Now, a new venture fund is marrying social impact and Millennial values with early stage investing—and redefining the term sheet in the process. The fund, Aera VC, is a […]
What Do Financial Advisors Have Against Local Investing?
I was on a panel earlier this year at the ComCap conference in Portland, discussing how my colleagues and I manage to do what other financial advisors seem incapable, unwilling, or downright frightened to do. Audience members recounted tales of bringing this taboo investment subject up to their financial advisors, only to be rebuked, scolded, […]
Crowdfunding Pioneer Indiegogo Makes Its Move Into Equity Crowdfunding
Indiegogo threw its hat into the investment crowdfunding ring on Tuesday, ending months of suspense. The company, which pioneered the rewards-based crowdfunding market in 2008, immediately became the 800-pound gorilla in the fledgling market. To date, more than $1 billion has been raised from 9 million backers for rewards-based campaigns on the site. Now, in […]
These New Crowdfunding Sites Seek Social as Well as Financial Returns
When the JOBS Act was signed into law, it was hailed as a major step in democratizing finance and opening up new pools of capital for small businesses, especially those run by women, minorities and social entrepreneurs who have traditionally struggled to raise funding. For the first time, everyone could be an impact investor. So […]
Will Intrastate Crowdfunding Finally be Fixed?
Intrastate crowdfunding is poised to take a giant leap forward next week when the S.E.C give a thumbs up—or down—to important changes proposed to two key exemptions that underlie all state-based crowdfunding activity. The Commission will meet on Wednesday morning to consider whether to adopt rule amendments related to Securities Act Rules 147 and 504 […]
Blended Capital Fund Helps Small Scale Farmers in Arkansas
The funding world used to be fairly straightforward: there was philanthropy for nonprofits, venture capital for startups and bank loans for existing businesses. But in the age of social enterprise and impact investing, those lines are blurring. As more businesses combine a social mission with a for-profit business model, finance is adapting, giving rise to […]
Republic Wants to Bring Angel Investing to the Masses
A new investment crowdfunding platform joined the fray over the summer. Founded by AngelList alumni, Republic.co brings with it a high level of street cred—and ambitions to match. It focus: everyday investors and companies that are innovative, diverse and mission-driven. Since it was launched six years ago, AngelList has become the gathering place for early […]
Credibles: Supporting Local Businesses With ‘Edible Credits’ is Just the Start
Investment crowdfunding may get all the attention these days, but there are other ways of support businesses you love—without all the red tape. One of those is Credibles, an app that lets you pre-pay at your favorite restaurant or food purveyor (like Love & Hummus, shown in photo above), and earn edible credits. Think of […]
Before You Invest: The Basics of Financial Due Diligence
Interested in investing in a company that is raising funds under Regulation Crowdfunding (Reg CF), Regulation A or Regulation D? That means doing your homework— understanding what you are investing in and making an “informed investment decision. In other words, due diligence. In this article, we’ll explore the basics of financial due diligence, which includes […]
PRIs: An Underused Funding Tool for Family Foundations and Social Enterprises
“It’s like startup nation! There are so many different businesses. And there’s so much money out there—and you can find these people.” – Joanne Wilson, Angel Investor, NYC Great advice, right? Then why do so many entrepreneurs and investors struggle to find one another? The answer is that yes, there is a lot of money […]
For Crowdfunders, Revenue Sharing Can Have Benefits Over Equity
When raising money through crowdfunding, one of the most important decisions entrepreneurs need to make is how to structure the offering. The appropriate structure will depend on a lot of factors, including the business’ stage of development, its performance to date, growth plans and the targeted capital source. But the options generally fall into one […]
Bill to Improve Regulation Crowdfunding Passes House
The legislative process has been compared to sausage being made. That was certainly the case with Regulation Crowdfunding, the provision of the JOBS Act that allows for mainstream investment crowdfunding open to all investors. In their desire to protect mom & pop investors, lawmakers modified the original bill in ways that made it too cumbersome to be […]