$5M catalytic capital vehicle makes first investment in Indigenous Matriarch-led fund, signaling new era of community-led finance
BOSTON–Boston Impact Initiative (BII), nonprofit impact investment fund and certified Community Development Financial Institution (CDFI), announced this week the launch of its First Mover Fund, with the goal of moving $100 million to communities of color by 2030. The launch was made during SOCAP25, a global gathering of the impact community, which took place in San Francisco from October 27 to 29, 2025.
The First Mover Fund is a $5 million pilot catalytic capital vehicle that will invest in the funds launched by participants in BII’s Advancing Regenerative Capital (ARC) Fellowship program and others leading impact-first funds across the United States. Designed with direct input from ARC Fellows, it aims to address the most critical challenge facing impact fund managers: accessing “first-in” capital to prove their model and attract larger follow-on investments.
Diverse fund managers are uniquely positioned to address economic disparities by deploying capital to historically overlooked entrepreneurs and communities,” says BII CEO Betty Francisco. “Their deep cultural understanding, lived experiences, and established networks enable them to identify and nurture high-potential businesses often overlooked by traditional finance. By making first-in investments like our partnership with Moonsoon Fund, we create powerful leverage that unlocks millions in community-directed capital.”
First Investment in Moonsoon Fund
BII also announced its first investment in Moonsoon Fund, a trailblazing Indigenous-led fund providing innovative, equitable financing for Indigenous Matriarch-led companies and projects. Co-founded by Justine Correa and Vanessa Roanhorse, with support from Jaime Gloshay at Common Future, the Moonsoon Fund reimagines how capital flows to Indigenous entrepreneurs, centering Indigenous values and governance structures.
“Building on our insights and experiences from Native Women Lead and the Rooted Relative Fund, Moonsoon is reimagining capital to better serve and build wealth for Indigenous entrepreneurs,” said Vanessa Roanhorse, co-founder of Moonsoon Fund. “This first-mover capital from BII allows us to prove what we know to be true: when Indigenous Matriarchs lead, entire communities thrive.”
Five Funds Showcase Breadth of Community-Led Capital Movement
At the launch event, five fund managers from BII’s ARC Fellowship delivered lightning presentations demonstrating the remarkable breadth and innovation of the community-led finance movement:
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Olivia Watkins, Black Farmer Fund: a community investment integrated capital loan fund that builds the black agricultural system by supporting farmers and agricultural businesses.
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Tenesha Duncan, Orchid Capital Collective: an impact-first fund that invests integrated capital at the intersection of reproductive care, economic opportunity, and community resilience to grow care infrastructure — land and real estate, workforce ecosystems, and social enterprises — that enables access to quality, affirming care in every community.
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Dion Cook, Denkyem Co-op: a CDFI that aims to create economic mobility within the Black community by providing affordable lending and personalized business support services.
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Alexander Sterling, Turtle Island Community Capital: an emerging Native CDFI that invests in Indigenous economic sovereignty, clean energy, and community resilience. TICC is dedicated to creating opportunities for native entrepreneurs through the deployment of social and first in financial capital, with culturally grounded programming and support vehicles..
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Nicole Johnny, 1st Sovereign Capital: an impact investing fund that provides both capital and connection for Native founders. Designed to expand access to resources, relationships, and opportunities that drive growth and long-term sustainability.
These presentations showcased the powerful diversity of approaches united by a shared commitment to building community wealth and economic justice.
Proven Track Record: ARC Fellowship’s Growing Impact
The ARC Fellowship, which BII launched in 2020, is an eight-month, cohort-based educational program that equips justice-driven fund managers from across the U.S. and Canada with the tools, skills, and community needed to design and lead impact-first integrated capital funds. The 2025 cohort of 10 fund managers launched in September.
Through the ARC Fellowship, BII has trained over 90 diverse fund managers to launch community-based impact funds, with 22 already raising and investing nationwide. These funds have deployed $15 million into their communities, with that figure nearly doubling this year. Fellows identify as 63% women and 91% people of color, truly representing the communities they serve. See here for a full list of ARC funds.
Three Pillars of Support
The First Mover Fund, seeded by grants, will catalyze and support community-based integrated capital funds through:
- Investment Capital: Direct investments into funds actively deploying capital to local, small businesses, providing the early social proof needed to unlock additional funding
- Operating Support: Milestone-based grants that bridge the gap between fund launch and sustainable operations, including support for hiring first full-time staff
- Capacity Building: Wraparound technical assistance through BII’s proven advisory services, connecting fund managers with legal support, back-office services, and investor networks
Research from the U.S. Small Business Administration (SBA), Knight Foundation, and Stanford Latino Entrepreneurship Initiative consistently shows that firms led by diverse managers are significantly more likely to invest in diverse-owned businesses. However, only 1.4% of assets under management (AUM) in the U.S. is managed by diverse-owned firms (Knight Foundation, 2022), representing a massive market failure and missed opportunity.
The First Mover Fund directly addresses this gap by providing the catalytic capital that proves diverse fund managers’ models work, creating a pathway for institutional investors to follow.
Become a First Mover
The First Mover Fund seeks values-aligned philanthropic partners willing to seed first-in grant capital. For more information on the First Mover Fund, please review the Executive Summary and contact our CEO Betty Francisco at [email protected].