Erik Stein│ImpactAlpha
The Boston Impact Initiative closed its second fund at $22 million, surpassing its $20 million target, to invest in New England based small businesses and non-profits.
The community development financial institution, or CDFI, is allocating 30% of the fund for community-controlled real estate projects, including affordable housing purchases and housing cooperatives.
The fund has already invested more than $10 million into 29 companies, supporting over 1,000 jobs and 700 units of affordable housing in the New England area.
Its portfolio companies include 88 Acres, a protein bar and nut butter manufacturer, Nuevo Dia Adult Day Health, an adult daycare center, and the East Boston Neighborhood Trust, which acquires properties in East Boston to maintain affordability.
It raised capital from over 240 impact-oriented and local investors in 24 states.
“There are absolutely investors that continue to care and prioritize those areas of impact,” Francisco said. “They want to invest more into community solutions, as opposed to the stock market, or into extractives like hedge funds.” Boston Impact Initiative’s Betty Francisco told ImpactAlpha.