ImpactAlpha, April 17 – Local Initiatives Support Corporation (LISC) is pulling capital from the treasury side of its business to back impact venture capital firm SustainVC. The 40-year-old community development financial institution is investing $1 million in Sustain VC’s second impact fund for social- and environmentally-driven startups.
LISC’s commitment to SustainVC is part of an initial $15 million strategy to align the organization’s investments with its organizational mission, which has made $20 billion in grants, loans and equity investments in underserved communities across the U.S.
“We are utilizing capital traditionally associated with conventional financial instruments to invest in impact-focused funds that actively promote quality jobs, healthy communities and a strong financial return,” LISC’s Maurice Jones said.
SustainVC Impact Fund II has a target fundraising goal of $25 million, half of which will be invested in women- and minority-owned businesses. Its impact targets include reducing carbon emissions by 100 million pounds annually and supporting 1,000 jobs.