Moving Capital First, Where it Matters Most
The First Mover Fund builds on more than a decade of BII's experience deploying integrated capital to drive community ownership, shared wealth, and lasting economic power.
First Mover Fund
BII’s First Mover Fund is a $5M pilot catalytic capital vehicle that will invest in 15-20 impact funds developed by the ARC (Advancing Regenerative Capital) Fellows and other impact-first funds across the U.S. Built directly from the insights of the ARC Fellows, this fund provides catalytic capital that scales proven models and unlocks additional investment for communities that have been systematically excluded from wealth-building opportunities.
The First Mover Fund 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.
First Mover Fund and ARC Fellowship News
BII Launches First Mover Fund to Move Millions of Catalytic Capital to Local Communities Building Regenerative Economies
$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
Meet the 5th ARC Fellowship Cohort
10 Fund Managers Advancing Regenerative Capital We’re excited to announce the launch of our 5th ARC Fellowship cohort, welcoming 10 exceptional fund
BII Releases Report, “Fearlessly Funding Racial and Economic Justice”
On December 18, 2024, BII released its highly anticipated State of the Cohort Report, Fearlessly Funding Racial and Economic Justice.
The Case for Community-Based Impact Funds
Diverse fund managers are uniquely positioned to address economic disparities by deploying capital to historically overlooked entrepreneurs and communities. Their deep cultural understanding, lived experiences, and established networks enable them to identify and nurture high-potential businesses often overlooked by traditional finance.
Research from the U.S. Small Business Administration (SBA), the Knight Foundation, and the Stanford Latino Entrepreneurship Initiative consistently shows that firms led by diverse managers are significantly more likely to invest in diverse-owned businesses. This critical role expands access to capital, fostering a more inclusive and equitable economy.
of U.S. AUM is managed by diverse-owned firms (Knight Foundation, 2022).
Impact managers of color are 2–3× more likely to invest in their communities (SBA, 2023).
Less than 20% of RIAs report having access to vetted impact products or networks for diverse fund managers (Confluence Philanthropy Survey, 2022).
These building blocks offer the wraparound support systems for fund managers to ensure their success as drivers of community-led economic justice.
Investment Strategy
The First Mover Fund will take a holistic approach to supporting impact funds through these three strategic pillars:
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 managers with legal support, back-office services, and investor networks
By making “first-in” investments, we aim to create powerful leverage that can unlock millions in community-directed capital.
Investment Criteria
We will prioritize investments for ARC Fellowship alumni who demonstrate:
- Active deployment to (i) businesses owned by people of color, women, and other entrepreneurs overlooked by traditional finance; and / or (ii) community-owned or controlled real estate that builds wealth and power while preventing displacement
- Participatory governance models that center community voice
- Commitment to community ownership, wealth-building, and systems change
- Clear path to sustainable operations
Investment Mix
Capital will be allocated across a blended strategy of equity, debt, and grants to provide flexible, catalytic support:
- Community Notes: Up to 50% ($2.5M) will be offered as highly flexible debt, structured with grace periods, interest rates of between 1% and 3%, and 5-10 year terms
- Solidarity Notes: Up to 40% ($2M) will be distributed as operational grants
- Philanthropic Notes: Up to 10% ($500K) will be deployed as equity
Impact
Outcomes
- Catalyze $100M+ in community-directed investments by 2030
- Support 300+ diverse-owned small businesses
- Create or preserve 2,000+ jobs in underinvested communities
- Add 5+ new CDFIs to the national infrastructure
The First Mover Fund represents a fundamental shift towards community-led solutions. It’s capital that doesn’t extract from communities but instead builds the infrastructure for sustained, community-controlled wealth creation.
Participatory Decision Making
The First Mover Fund centers the lived experience and expertise of fund managers in every aspect of its decision-making. Governance is shared among BII’s investment team, an Investment Committee, and an Alumni Advisory Board—both composed of graduates of the ARC Fellowship. This structure embeds peer leadership, community insight, and shared accountability at the core of the Fund’s governance.
Ready to move first?
Join us in showing that the future of finance is community-led, justice-centered, and people-powered. Contact us to get involved.