ImpactAlpha, March 2 — Revenue-based financing investment firm Founders First Capital Partners invests in underfunded and underrepresented small businesses across the U.S.
The company has raised $9 million in a Series A investment round co-led by the Rockefeller Foundation and the Surdna Foundation, with participation from Kauffman Foundation, Living Cities’ Blended Catalyst Fund, Spring Point Partners, The Impact Seat and Lindmor Foundation.
“We have reached a critical inflection point exposing the urgency of leveling the capital access playing field for minority-owned businesses which are key engines of growth in their communities,” said The Rockefeller Foundation’s Maria Kozloski.
Founders First will use the capital to help deploy its $100 million loan from Community Investment Management to 400 companies (see, “Q&A with Founders First’s Kim Folsom: Helping diverse founders grow businesses with revenue-based financing”).
Founders First has backed more than 500 service businesses to date, including Chicago’s Onshore Technology in October. The firm says 83% of the businesses that participate in its accelerator programs saw an increase in revenues within the first year.