Capital Action Team
- Existing firms and potential entrepreneurs require access to capital and a strong network of business services—both are currently inadequate.
- More connection between various investors and investment opportunities need to be coordinated, region by region. There are gaps in the financial ecosystem and more intermediaries are needed throughout the financial continuum for all types of investments and all types of capital.
- Impact investors and local residents interested in targeting specific regions, industries or firms lack effective intermediaries.
- Identify gaps, eliminate barriers, and establish appropriate intermediaries to increase access to capital.
- Target investments that generate economic as well as social and environmental returns to California communities.
Action Team Co-Leads
- Greg Wendt, Stakeholders Capital
- Marc Nemanic, 3CORE
- Seth Wilson, Cutting Edge Capital
Goals for the Year
Progress update - September 1, 2015
Priority action identified in Summit Plan to Advance Prosperity in 2014:
• Identify and explore ways of using capital intermediaries that can close gaps in access to capital in all of the state's regions.
Create regional maps of intermediaries (including, for example, types of data proposed in recent state efforts to direct triple-bottom-line investments to underserved communities). Distribute to regions.
Prototype and replicate products and platforms that increase capital investment in underserved regions, including non-metro areas.
1. Create inventory of capital intermediaries in regions throughout California.
Identify the intermediaries currently operating in each region and identify gaps in capital needed and/or new intermediaries, Investment categories for discussion include:
• Early-stage entrepreneurs.
• Later-stage equity and private-equity investing.
• Working capital and mezzanine loans.
• Revenue bonds, Credit Enhancements, Infrastructure financing.
Fourteen individuals made commitments to support or launch mapping efforts, aimed at identifying existing financial intermediaries as well as gaps in access to capital in regions across California: • Regional mapping efforts will move forward in the Inland Empire, Los Angeles, Ventura, Bay Area and Sierra Nevada. • A consistent template will be developed to record information on intermediaries including markets served and financial services provided. Augmenting mapping efforts, several individuals committed to raising awareness of sources of capital in California by: • Hosting webinars and workshops on various capital sources. • Improving regional knowledge of state programs to assist with small business lending. Several individuals made commitments to increase new sources of capital by: • Supporting the potential California Community Investing Initiative (AB 495) to direct triple -bottom-line investments to low-income communities. • Connecting international impact investing efforts with California needs. • Supporting platforms to reduce microloan transaction costs.
2. Assess capabilities and shortcomings of existing intermediaries and identify gaps in access to capital.
Convene or join regional team to conduct comprehensive regional assessment of operating intermediaries and gaps.
3. Map needs for new intermediaries which can be formed and deploy capital in the next 12-24 months.
Develop working network of intermediaries that meet needs of businesses and industry clusters in regions across California.