Revolve Fund today announced its pilot strategy to increase capital access. The program will bridge the gap between aspiration and reality for persons of color seeking to open, grow or scale their business or nonprofit. A philanthropic initiative, Revolve Fund offers interest-free, recoverable capital to support Black/African-American, Latinx, Native American, and other people of color-led businesses, nonprofits, and financial intermediaries. To date, the fund has raised nearly $1 million and expects to raise more than $2 million. It will provide at least 20 recoverable grants nationally. Revolve Fund has received anchor funding from JPMorgan Chase, Open Society Institute – Baltimore, and The Rockefeller Foundation.
“For entrepreneurs and nonprofit leaders of color, systemic barriers disproportionately prevent their businesses and nonprofits from equitable capital access,” said James Wahls, Revolve Fund managing director and founder, and senior vice president of programs and initiatives at Mission Investors Exchange. “Revolve Fund intentionally deploys ‘friends and family-like’ funding to increase capital access, a critical factor for success.”
This program is about getting funding where it is needed most. Research indicates families of color often have less disposable income for funding business and nonprofits. In 2019, the median net worth of white families was 7.8 times that of Black families. Latino-owned businesses are more likely to experience funding shortfalls than white-owned businesses. Revolve Fund’s catalytic funding increases grantees’ ability to secure additional capital. Early data shows that Revolve Fund grants to debt and venture funds have resulted in a 275% increase in capital access for businesses and nonprofits led by people of color.
Revolve Fund’s recoverable grants are provided directly to organizations or co-invested with certified community development financial institutions, nonprofits, or venture funds. The approach maximizes Revolve Fund’s industry expertise and grantees’ sourcing, underwriting, and portfolio monitoring capabilities.
“Revolve Fund’s pilot approach offers a philanthropic model that intentionally eliminates financial barriers and catalyzes capital access for entrepreneurs and nonprofits led by people of color,” Dekonti Mends-Cole, vice president of global philanthropy at JPMorgan Chase. “It is imperative that models such Revolve Fund are supported if we are to achieve a more equitable and inclusive economy.”
Revolve Fund is managed by Wahls and fiscally hosted by Maryland Philanthropy Network. It is also partnering with Mission Investors Exchange, the leading impact investing network for foundations dedicated to deploying capital for social and environmental change. Wahls brings 15 years of experience in the philanthropic, impact investing, and legal sectors. With stints at the Annie E. Casey Foundation in Baltimore, Maryland and the W.K. Kellogg Foundation in Battle Creek, Michigan, Wahls has managed or co-managed $240+ million in impact investing allocations comprised of grant, equity, debt, and direct investments. Notable strategies designed or led by Wahls include the Baltimore Small Business Support Fund and the Detroit Entrepreneurs of Color Fund. Wahls also executed investments in affordable housing, financial inclusion, quality job creation, and community development.
