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CAPITAL ACCESS ROUNDTABLE: FUNDERS AND INVESTORS - Shared screen with speaker view
Robert
42:38
I am Robert E. Carter, from San Diego, CA
Chonda Aiello @ Justine Petersen
42:40
Good morning. This is Chonda Aiello from Justine Petersen.
Katie Castro, The Latino Coalition
42:51
Hi, Katie Castro from Kansas City, Missouri. Sr. Director of Partnership Services at the Latino Coalition.
Barbara Carswell, YouthBridge Community Foundation
42:59
Hello everyone, Barbara Carswell from YouthBridge Community Foundation.
Jiatian He
43:04
Justin He, WashU, from St Louis MI
Tori Gonzalez
43:11
Tori Gonzalez - St Louis Capital Collaborative
Josh Silver
43:11
Josh Silver, National Community Reinvestment Coalition, NCRC, jsilver@ncrc.org. Community Reinvestment Act policy
Cyril Loum
43:12
Cyril Loum - Skandalaris Center
Torrie Real (she/her)
43:15
Thanks for joining, Katie!
Jessica Weldon
43:19
Hi All! Jessica Weldon with the Skandalaris Center/Entrepreneurship at WashU!
Mayra Rios Bojorquez
43:36
Mayra Rios, WashU - Olin Business School, from STL MO
Teresa Wilke (she/her) - MO
43:49
Teresa Wilke, Silver Arrow Strategies in STL and Adjunct Brown School Faculty. Thanks for this session!
Chris Ramsay
44:16
Hello All! Chris Ramsay of the Skandalaris Center at WashU- https://www.linkedin.com/in/chris-ramsay-2011/
Stephanie Goss
44:16
Stephanie Goss, WashU, Olin Business School, from St. Louis Missouri
Melissa Grizzle (she/her)
44:33
Melissa Grizzle, Dir of Entrep Dev at ITEN (Innovation, Technology & Entrepreneur Network) in St. Louis.
Torrie Real (she/her)
44:43
Nice to see you, Teresa!
Sara Westbrooks
45:26
Hello everyone! Sara Westbrooks, Entrepreneur Support Associate, Arch Grants
Anjie Sanford
45:44
Hi All - Anjie Sanford BioGenerator, Manager of Inclusive Entrepreneurship Development. Let's connect!
Whitney Bembenek
45:57
Whitney Bembenek, MSW at WashU, WEPOWER storyteller, DEI practicum student at BioSTL
Maya Ulin-O'Keefe, WUSTL
46:24
Welcome everyone! Excited to see everyone here. Please continue putting your name and info into the chat.
Derek Ozkal
48:12
Derek Ozkal, Senior Program Officer, Kauffman Foundation
Torrie Real (she/her)
48:57
WEPOWER: https://wepowerstl.org/
Maya Ulin-O'Keefe, WUSTL
54:59
https://livingcities.org
Maya Ulin-O'Keefe, WUSTL
55:49
https://www.missiondrivenfinance.com
Brittany Henry
56:17
Hi All - Brittany Henry, Sr Associate at Impact America Fund
Bukola Apata WUSTL (SHE/HER)
58:03
Welcome Brittany. Good to have you here!
Alex Antrum - The Hackett Group
01:01:36
Hello Everyone. Alexander Antrum, Analyst, Reconstruction Funds. New Orleans, LA
Yoni Blumberg, WEPOWER (he/they)
01:01:44
So expensive!
Torrie Real (she/her)
01:02:01
Thanks for joining us, Alex!
Yoni Blumberg, WEPOWER (he/they)
01:10:19
In case anyone wants to go deeper into “non-extractive finance,” this is a good starting point: https://seedcommons.org/about-seed-commons/seed-commons-approach-to-non-extractive-finance/
Lauren Grattan / MDF (she/her)
01:10:39
+1 on a blended capital stack with different kinds of investors playing different roles in a fund
Heather Cameron WASHU
01:10:53
Thank you - yes pls all share cool links
Robert
01:12:45
This meeting is only for fund managers?
Yoni Blumberg, WEPOWER (he/they)
01:14:03
@Robert, no, it’s open to all though the focus is on access to capital so many in the room are involved in fund management
Yoni Blumberg, WEPOWER (he/they)
01:18:07
Would love to hear how you get the banks interested in other approaches to CRA
Maya Ulin-O'Keefe, WUSTL
01:18:12
https://www.thehackettgroup.com
Lauren Grattan / MDF (she/her)
01:18:20
@Alex - love that framing for growing subs to prime contractors. Great way to tap into anchor institutions' supplier diversity programs and impact spend.
Yoni Blumberg, WEPOWER (he/they)
01:18:34
Most St Louis banks have seemed to be pretty settled in their current approaches, at least in my limited experience
Thaddeus Fair (Living Cities)
01:18:49
especially in light of the infrastructure bill being introduced
Torrie Real (she/her)
01:19:06
Hackett Group Fund: https://www.thehackettgroup.com/?msclkid=94d846b7c65011ec82bbfcc82fd5e87d
Torrie Real (she/her)
01:20:25
Manchester Story Group: https://manchesterstory.com/?msclkid=cb8a65f5c65011ecb322ae1c36637783
Torrie Real (she/her)
01:21:13
http://www.higherpurposeco.org/
Yoni Blumberg, WEPOWER (he/they)
01:21:15
+1 to what Lauren said; would love to connect around that more, Alex. We’ve been looking into doing more focused work with Black and Latinx owned & led construction firms & anchor institutions
Alex Antrum - The Hackett Group
01:23:18
Yoni/anyone else, I would be great to connect. My email is alexander@hackett-group.com
Robert
01:23:20
Ok. Thank you Yoni. I am a minority business owner with an investment/loan from one of the participants here and I was just trying to learn about access to growth capital and how these groups look at that beyond initial contributions. Can someone address how any of their funds are looking at that. A lot of minority businesses put the initial capital to work and achieve great growth but have no access to capital to support that growth.
Lauren Grattan / MDF (she/her)
01:26:10
Two of our other client-partners are involved with Kaiser Permanente and the healthcare anchor network to diversify supply chains and stabilize with employee ownership. Brand new write-up: https://about.kaiserpermanente.org/community-health/news/employee-owned-businesses-foster-healthier-local-economies
Torrie Real (she/her)
01:26:51
https://wepowerstl.org/
Bukola Apata WUSTL (SHE/HER)
01:31:22
https://justinepetersen.org/
Melissa Grizzle (she/her)
01:31:48
Great stuff, Tori and JP!
Yoni Blumberg, WEPOWER (he/they)
01:32:16
Hi Brendan (Cosgrove), so glad to see you here! I owe you a major shoutout for suggesting WEPOWER look into a revenue based model a few years back. That was one of the most useful suggestions in our whole research process and turned us on to the path we’re on today. And shoutout in turn to Kauffman Foundation for funding the Capital Access Lab to support more work like this (in addition to this research project obviously)
Thaddeus Fair (Living Cities)
01:32:20
+1 to the mobilization lending / guarantee pool need! Also, a great way for financial institutions and philanthropic groups to partner
Yoni Blumberg, WEPOWER (he/they)
01:34:51
@Thaddeus, sounds like a great place for Living Cities to broker some relationships! :)
Lauren Bruhl
01:35:19
Thank you for such an informative Zoom! Unfortunately I need to leave for class, but thank you.
Tim Lampkin (Higher Purpose Co)
01:35:29
Higher Purpose Co loan guarantee pool within our funding network is supported by RSF Finance and the Jessie Smith Noyes Foundation. We maintain agency in the decision making process and have used the guarantee to reduce interest rates and closing costs.
Yoni Blumberg, WEPOWER (he/they)
01:37:50
Tim, that’s really cool to hear that RSF is part of that. I didn’t know they did that. Can you share more about your terms (rates, duration, etc)
Yoni Blumberg, WEPOWER (he/they)
01:39:31
That box is part of how we got to where we are! It’s an exclusive and discriminatory box
Lauren Grattan / MDF (she/her)
01:39:59
To support Black & Latinx entrepreneurs especially, we want ALL the tools in the toolbox to exist. To Tori's point, CDFIs (and banks) are best suited to provide lines of credit. In our part of the country, they are also excellent for microfinance and business starts. We like to fill the spaces in between where CDFIs shine.
Yoni Blumberg, WEPOWER (he/they)
01:41:59
Appreciate those points (and that candor) Galen
Heather Cameron WASHU
01:42:09
I would also like to invite all the students to share questions in the chat
Lauren Grattan / MDF (she/her)
01:43:06
+1 Galen - the cost of capital for CDFIs from banks not only in terms of the rate, but also the risk parameters that they require
Yoni Blumberg, WEPOWER (he/they)
01:43:13
I am really appreciating how this conversation is starting at the entrepreneur & fund level and moving upstream to more of a systems and policy lens!
Yoni Blumberg, WEPOWER (he/they)
01:44:18
(To clarify, I didn’t lay out the agenda, lest that sound like I’m complementing myself. I meant that as praise to Heather & Bukola who really put in nearly all of the work to organize and plan this)
Heather Cameron WASHU
01:44:36
😊
Tim Lampkin (Higher Purpose Co)
01:44:40
Yoni- Higher Purpose Co worked with a CDFI Communities Unlimited in partnership with RSF to stand up the loan guarantee. Some of the aspects include Guarantee Rates” shall be as follows: (a) 75%for Loans to (i) any business that has operated as a home-based or other part-time business forany period of time and is now preparing to move to full time or (ii) any business that hasoperated full time for two years or less (“Start-up Business”) and (b) 60% for Loans to anybusiness that has operated for more than two years and has documented sales and a marketplace(”Existing Business”).
Tori Gonzalez
01:45:10
Barbara - Great to hear that you moved forward with investing in CDFI’s!
Bukola Apata WUSTL (SHE/HER)
01:45:15
Thank you @Yoni :)
Heather Cameron WASHU
01:45:16
Thank you Tim
Torrie Real (she/her)
01:46:51
https://ncrc.org/
Lauren Grattan / MDF (she/her)
01:48:51
So appreciate folks investing in CDFIs. They also have a rough time with federally-mandated balance sheet ratios. Supporting with grants, equity, and deposits is also important so that more community lending can take place.
Yoni Blumberg, WEPOWER (he/they)
01:50:29
Yes!! The smaller investment is likely just as expensive to underwrite (or perhaps more expensive/time consuming) and where there are more gaps in access to capital!
Yoni Blumberg, WEPOWER (he/they)
01:50:37
Great point
Heather Cameron WASHU
01:51:18
Yes we all need to think about where we bank
Yoni Blumberg, WEPOWER (he/they)
01:53:16
+1 to what Lauren said re: CDFIs & investing in CDFIs. To be candid & fair, in St Louis they’re (I think?) the only non-bank investors doing this work at scale. As Lauren said earlier, we need all the tools in the toolbox. And it’s critical we do what’s possible to meet individuals and business owners with the best terms possible in the current system while also experimenting with models that hold promise for the future. And CDFIs are critical partners in that experimentation too.
Yoni Blumberg, WEPOWER (he/they)
01:55:01
@Josh — glad you added that last point! I would love to help play a role making sure everyday people know what’s happening with CRA reform & know how to represent their views and participate in the (normally wonky & inside baseball) comment period
Heather Cameron WASHU
01:55:06
Yes BJC is making moves to deploy money in CDFI
jsilver
01:55:21
https://ncrc.org/conference/
jsilver
01:55:54
announcement of NCRC conference
Yoni Blumberg, WEPOWER (he/they)
01:55:55
It sounds like procurement requirements (i.e. there are requirements that exist on paper and there’s a huge gap between goals or rules on paper and what happens in practice)
Robert
01:56:19
Why aren't these companies deploying capital directly in growth minority businesses like mine?
Brittany Henry
01:58:29
+1 Melissa
Yoni Blumberg, WEPOWER (he/they)
01:59:37
Robert — I think each of these groups is trying to deploy capital effectively to make things more inclusive and accessible. Beyond that, it’s hard to comment on the specifics of your experience without knowing the specifics of your business, which a venue like this isn’t really well suited for. I wish you the best.
Lauren Grattan / MDF (she/her)
01:59:42
+1000 Melissa - entrepreneur support organizations are KEY to making sense of what capital is the right capital for the stage of business
Yoni Blumberg, WEPOWER (he/they)
01:59:50
+1000 from me too
Yoni Blumberg, WEPOWER (he/they)
02:01:53
The St Louis Capital Collective that Tori has been convening is taking an approach that uses entrepreneur support organizations as key referral & underwriting partners.
Lauren Grattan / MDF (she/her)
02:02:35
💛 Impact America Fund team
Bukola Apata WUSTL (SHE/HER)
02:03:03
Join our LinkedIn group to stay connected, network,and get updates https://www.linkedin.com/groups/9159967/
Bukola Apata WUSTL (SHE/HER)
02:03:59
This is the Capital Access Prosperity Strategy and Practice Group.
Bukola Apata WUSTL (SHE/HER)
02:06:09
Join our LinkedIn group to stay connected, network, and get updates https://www.linkedin.com/groups/9159967/
Bukola Apata WUSTL (SHE/HER)
02:06:17
This is the Capital Access Prosperity Strategy and Practice Group.
Yoni Blumberg, WEPOWER (he/they)
02:07:13
If folks on the call are working on making access to capital more inclusive and haven’t heard of the Inclusive Capital Collective, I encourage you to also check that out and join: https://www.inclusive-capital.us/
Derek Ozkal
02:08:11
Incredible conversation and wonderful to hear about so many efforts. Thanks all for sharing!
Yoni Blumberg, WEPOWER (he/they)
02:08:25
As a place-based group, it can be really hard to keep tabs on what’s happening nationally in this work. Appreciative of settings like this as well as things like the Inclusive Capital Showcase that groups like Zebras Unite and the ICC have organized.
Lauren Grattan / MDF (she/her)
02:09:04
Local cross-referral is great! In San Diego, we have a group of impact lenders that convene quarterly to share what we're seeing and deepen relationships with each other to make it easy to refer entrepreneurs to best-fit capital.
Tim Lampkin (Higher Purpose Co)
02:12:20
Kay’s Kute Fruit https://www.ofn.org/impact-stories/family-owned-mississippi-fruit-shop-purchases-building-with-cdfi-financing/
Tori Gonzalez
02:14:00
Hearing what other communities are doing: takeaway - capital + services much needed - which means high touch. Connect with Alex and Tim.
Bethany (she/her)
02:14:01
For an action item, I’m a grad student who serves on a planning committee for WashU’s 2023 Impact Investing Symposium. I appreciated this conversation so much and took pages of notes for my takeaways!
Cyril Loum
02:14:03
Thank you!
Lauren Grattan / MDF (she/her)
02:14:05
Co-create and share information about the full spectrum of capital tools & when to use them.