2017 • 1 year, 2 months • Impact Investments
Village Capital – a mission-driven venture capital firm that finds, trains, and invests in early-stage ventures solving challenging social problems – is conducting a pair of studies focused on barriers that inhibit the inclusivity of early-stage investments in the United States. These include a narrow and restrictive approach to deal selection that excludes many entrepreneurial ventures led by women and people of color, and a default equity investment structure that makes it difficult for all but a very narrow slice of entrepreneurial activity to access financing. One study assesses the financial performance of Village Capital’s innovative and inclusive peer selection investment model, along with its entrepreneurial and geographic diversity. The second is a feasibility study focused on the development of new financial structures with the potential to broaden the base of entrepreneurial investees. These studies provide useful insights to the emerging field of impact investing, and should enable more capital to flow to underrepresented populations and geographies. The findings from both analyses will be disseminated widely to the field through whitepapers, concept notes, and other forms of communication.