EQUITY2
Social Enterprises for Economic Development Fund (SEED Fund)
Kansas City, MO
Capital Challenge
Federal Share: $289,579
Local Match: $423,734
Opportunity Zone: Yes
Equity2 will launch the Social Enterprises for Economic Development Fund (SEED Fund) to increase seed and early stage equity capital for social entrepreneurs in the Kansas City bi-state region. The SEED Fund will invest in scalable, purpose-driven businesses seeking $100,000 or less in capital. Our initiative is focused on driving intentionally equitable and inclusive investments, paying deliberate attention to ensuring that funding and programming support are readily accessible to founders from and creating jobs within the Kansas City region’s low-income communities.
By partnering with existing capital providers, including a neighborhood-level community development non-profit and a small-business lending Community Development Financial Institution, the project will establish a comprehensive capital framework to fund entrepreneurs from the region’s overlooked, under-invested in communities. Through founder and investor outreach and educational programming, this project ensures that purpose-driven startups with high potential for growth and quality job creation can find a local, readily available funding opportunity.
This project will provide over 1,000 hours of mentorship and business development education to founders of social enterprises, will engage 100 new impact investors, who will invest a combined $1 million into a minimum of 10 social enterprises by 2023, creating 20 new quality jobs in the region’s low income neighborhoods. The long-term goal is to grow the SEED Fund to invest $5 million over the next 8 years.