Change Catalyst Fund
A new social impact investment platform
Founders First Capital Partners (Founders First) and Reynders McVeigh Capital are partnering to launch the Change Catalyst Fund (CCF). Founders First is a social impact investment platform designed to fund and grow businesses led by BIPOC founders. Founders First is funded by major national foundations including The Rockefeller Foundation, Surdna Foundation, Kaufmann Foundation and several others.
The CCF is an impact fund that provides flexible growth capital loans to support expansion and job creation in small businesses led by diverse founders. Founders First defines diverse founders as women, persons of color, LGBTQ+, military veterans and those in underserved communities. The CCF’s typical borrowers are businesses generating $500,000 to $5,000,000 in annual revenues with the potential to grow to $10,000,00 in annual revenues.
100% of the funds from investors in the CCF are used to fund small businesses; there are no management or servicing fees to Founders First. Investors will invest in 7-year promissory notes (the “Notes”) paying a 7% annual interest rate. The minimum investment is $100,000. Noteholders will receive interest-only payments for the first 3 years and even payments of principal plus accrued interest for the remaining 4 years. Payments are made quarterly and investors will receive a portfolio performance report annually.
The Note issuer and entity that will comprise CCF is Founders First Change Catalyst Fund, LLC (the “Issuer”). The Issuer is owned by Founders First Capital Partners, Inc., and the Notes will be secured by a security interest in the equity securities of the Issuer. The initial offering period for the Notes is 3 years after the first issuance of Notes.
How Founders First Change Catalyst Fund Works