Founders First Capital Partners Secures Unprecedented $100-Million Credit Facility from Community Investment Management (CIM) for Expansion of Revenue-Based Investing Aimed at Supporting Service-Based Businesses and Job Creation in Under-Served Communities
With an infusion of funding support from prominent firm family offices and Consumer Technology Association (CTA), Founders First is advancing its efforts to support next-stage expansion of companies led primarily by minority, military veterans or women.
San Diego, CA, Dec 3, 2019 – Founders First Capital Partners has secured a $100-million credit facility from Community Investment Management to significantly expand its revenue-based financing model supporting service-based businesses and job creation in under-served communities. The latest investment positions Founders First to be the largest platform of its kind in the country to offer venture capital for businesses led by or that serve under-represented groups, and it reflects a growing awareness of the benefits of investing in ventures committed to having a societal impact.
“Founders First is very pleased to have secured such significant funding, which allows us to expand our efforts to businesses that are led by underrepresented founders or those that serve underrepresented communities,” said Kim Folsom, CEO and a co-founder of Founders First Capital Partners. “I would like to thank all the investors and investor groups that have contributed over recent years to our effort as we move into this new phase of supporting next-stage growth of ventures aimed at having a societal impact.”
The $100-million credit facility from Community Investment Management will allow Founders First to advance its efforts supporting next-stage expansion of companies that are led primarily by minorities, military veterans, or women, and that have a base revenue level of $1 million to $5 million annually.
Jacob Haar, Managing Director of Community Investment Management (CIM), said: “CIM is excited to partner with Founders First to expand revenue-based financing to support underserved and underrepresented small business founders, including people of color, women, LGBTQ, and military veterans as well as small businesses located in low to moderate income areas. We have found revenue-based financing to be a compelling alternative to venture capital and fixed payment loans as a forward-looking and structurally flexible investment to support business growth. We believe that Founders First’s unique advisory and revenue-based investment platform enables underrepresented small businesses to overcome systematic bias and achieve their potential.”
Community Investment Management is the latest in a growing list of investors committed to Founders First. It joins an expansive group that includes Will Allen, NFL Veteran of Pittsburg Steelers; Giles Bateman, PriceClub co-founder, Barbara Clarke of Tethered; JoAnn Price, a co-founder and managing partner of Fairview Capital; Jim Sinegal, Costco co-founder; and the Consumer Technology Associations Foundation.
“CTA is excited to support and invest in Founders First. Evidence shows diverse leaders and teams make better decisions and reach greater results, and CTA is committed to changing the face of tech entrepreneurship and providing greater access to venture funding. Our investment in venture funds dedicated to providing funding for women and diverse entrepreneurs is central to our mission,” said Tiffany Moore, Senior Vice President of Industry and Political Affairs at Consumer Technology Association.
“As a pioneer investor in women-led companies, I am excited to support the Founders First mission of providing growth capital and advisory services to underserved, service-based businesses led by diverse founders,” said Tethereds Barbara Clarke.
“I believe their unique investment model and support platform will unlock access to mid-size markets that has not been previously available to companies led by underrepresented founders.”
Since its founding in 2015, Founders First has built a successful accelerator program that has recruited a network of more than 200 companies, more than 75 percent of which have been transformed into a leading, niche-market, recurring revenue-generating, job-creating businesses.
Said Allen, Investor, 12 Year NFL veteran: “I am are thrilled to be an investor and partner in Founders First, as they provide much more than funding; they provide expertise and resources to underserved small businesses that help build and retain premium jobs in many urban communities. I look forward to supporting Founders First as they expand their programs across the country.”
Founders First Capital Partners employs a 5-step process that includes pre-funding educational training accelerator programs offered online, in person, or in a hybrid format. Companies receive up to $1 million in funding and growth support, and they repay their loans with growth revenue generated over a five-year term, capped at twice the amount financed.
The procurement of this credit facility support signifies to us that there is a clear opportunity and interest in offering revenue-based investment to support positive outcomes for service-based, social-impact companies, said Folsom. With this additional funding, we look forward to advancing our mission of helping small businesses grow to the next level and extend their economic impacts to communities that can most benefit from job creation.
About Community Investment Parters
Community Investment Management (CIM) is an institutional impact investment firm that provides strategic debt funding to demonstrate and scale responsible innovation in lending to underserved communities and advance financial inclusion, promote economic development and drive widespread adoption of such innovation by the financial mainstream. CIM combines experience, leadership, and values to align the long-term interests of investors and historically underserved communities. CIM combines experience, values and credit expertise to align the long-term interests of underserved borrowers with those of investors. More information is available at http://www.cim-llc.com.
About Founders First Capital Partners
Founders First Capital Partners, LLC is building a comprehensive ecosystem through its proprietary platform to empower underrepresented founders to become leading premium wage job creators within their communities. We provide revenue-based funding and business acceleration support to service-based small businesses located outside of major capital markets such as Silicon Valley and New York City. We focus on supporting businesses led by women, ethnic minorities, and military veterans, inclusive teams and businesses located in low to moderate income areas. Our proprietary business accelerator programs, learning platform, and growth methodologies transition these underserved service-based businesses into $5M to $50M recurring revenue, tech-enabled companies while providing, high-yield investments for fund limited partners (LPs) that perform like bonds but generate returns on par with equity investments. Each year, Founders First Capital Partners works with hundreds of entrepreneurs and offers 3 cohort programs through our through our Founders Business Growth Bootcamp and 12 cohorts through our FastPath Funding Growth Experience program.
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