What is Growth Capital?
In order for a social enterprise to thrive and reach a scale for impact, growth capital is required. However, unlike in the private sector, nonprofit social enterprises are limited in their ability to take on various types of financing (such as equity and often times, conventional loans). Therefore, there is a great need for the development of a portfolio of funding vehicles to support these high impact organizations. Traditionally, nonprofit social enterprises raise capital through earned revenue, federal and private grants, and various types of patient capital, such as low interest loans.
Of course, developing into a self-sustaining organization, where all projects and organizational operations are supported by earned revenue is the objective of almost all social enterprises. Yet, because social enterprises are often developed in fields with significant institutional barriers that have prevented most private sector investment, social enterprises are often required to do extensive outreach and “channel building” to develop their marketplace. The result is that social enterprises often require significant more investment than their private sector counterparts who are developing businesses in already established market channels.
Does FCA use growth capital?
FCA is currently implementing a growth capital campaign. To learn more about the campaign, visit FCA’s growth capital page.