Good Capital LLC (www.goodcap.net), the San Francisco-based manager of the Social Enterprise Expansion Fund, announced today a US$200,000 subordinated loan to Root Capital (www.rootcapital.org), a nonprofit social enterprise that is pioneering finance for rural communities in developing countries. As a part of this groundbreaking impact investment, Good Capital and Root Capital have developed a multi-year, strategic partnership that will focus on finding creative and innovative marketing strategies to build Root Capital's brand and increase its capacity for additional growth.
Root Capital provides capital, delivers financial training, and strengthens market connections to small and growing businesses – such as farmer cooperatives – that build sustainable livelihoods and transform rural communities in poor, environmentally vulnerable places. Since its launch in 1999, it has provided more than US$200 million in loans to 282 small and growing businesses, representing 400,000 individuals in 30 countries throughout Latin America and Sub-Saharan Africa. Root Capital maintains an impressive 99% repayment rate from its borrowers and a 100% repayment rate to
'We have found a non-profit partner willing and able to take on our kind of growth capital to accelerate their social impact and to participate in a deep engagement that aligns our resources and talents with their needs and strategic goals,' said Kevin Jones, Partner and Co-founder of Good Capital. 'Root Capital provides the global reach, measurable impact and stable financial basis that was already making a huge difference in the world, where Good Capital's unique mix of talent and resources can add something new and essential.'
Good Capital is an investment firm that increases the flow of capital to innovative ventures creating market-based solutions to inequality and poverty. Using a high engagement model, it invests in the most promising social enterprises and gives them the tools and guidance they need to succeed. In addition, Good Capital actively leads the development of the emerging social capital market. It shares a deep commitment to the creation of a new, informed, and passionate world of investing that strategically moves more capital to good.
'We are excited about our partnership with Good Capital and are looking forward to working with them to strengthen our brand and build the critical marketing and communication tools needed to grow our impact,' said William Foote, CEO and Founder of Root Capital. 'This partnership will help us to strategically identify both the financial and human capital resources needed for us to reach our long-term goals.'
'It has been a goal of ours to show that it is possible to invest in a wide spectrum of companies with a baked in social mission that ranges from for-profit to nonprofit,' said Tim Freundlich, Partner and Co-founder of Good Capital. “Root Capital exemplifies what a high performing nonprofit can be, while this engagement demonstrates the abilities of Good Capital to engage deeply across this spectrum.'
About Good Capital
Good Capital manages the Social Enterprise Expansion Fund, which leverages the power of venture capital to increase the impact of social enterprises. The fund provides growth capital and expertise to expansion stage social enterprises that harness the power of business to create positive social and environmental change in the world. Its mission is to create a new, informed, and passionate world of investing that strategically moves more capital to good. For more information, please visit www.goodcap.net.
About Root Capital
Root Capital is pioneering finance for grassroots businesses that build sustainable livelihoods and transform rural communities in poor, environmentally vulnerable places. By working with small and growing businesses, it aims to fill the 'missing middle' of finance in developing countries – the underserved gap between microfinance and commercial banking. Root Capital is a founding member of the Aspen Network of Development Entrepreneurs (ANDE) and the Global Impact Investing Network (GIIN). It receives support from a wide variety of investing and philanthropic sources, including foundations, corporations, socially responsible investment firms, religious.