Vermont Sustainable Jobs FundThe VSJF Flexible Capital Fundhas invested $285,000 in new and existing portfolio companies between 2013 through 1st quarter 2015.It remains the only Vermont licensed lender to offer royalty loans at a Vermont scale and as an alternative to equity financing. Since its launch in 2011, it has invested over $1.7 million in seven companies, and have already seen one early payout. Revenues in 2014 for its portfolio companies totaled $23.8 million in aggregate - a weighted increase of 62 percent over 2013 revenues. Five of our six companies (in 2014) increased sales growth with each year following the Flex Fund investment.
Janice St. Onge (second on right) with Flex Fund Board Members Tim Storrow, Jed Kalkstein, and Dorothy Saput (Christine Donovan not pictured)Flex Fund
Its portfolio companies added over 35 new jobs in 2014, and total wages from these companies were just under $4.5 million in 2014. The ratio of highest to lowest pay ranges from 2 to 5 times the lowest pay, which suggests fairly equitable workplaces.
In 2014, it reached its $4.0 million capitalization goal through additional investment from accredited investors, and a $600,000 Community Development Financial Institution (CDFI) award from the US Treasury. Its 37 investors come from Vermont and around the country, and include individuals, for profit LLCs, foundations, and non-profits.
With the CDFI award, the Flex Fund was able to fully capitalize the fund, provide for loan loss reserves, and set aside technical assistance funds to help our borrowers with advisory services as they grow. Now that its capital campaign is complete, it is moving ahead byputting that capital to work to help grow Vermont's agriculture, forestry and clean technology businesses.
Interested parties looking to grow anagriculture, forestry or clean technology company may contact theFlex Fundto see if your company or another may want information regardingroyalty financing.
The Flex Fund organization continues to educate other funders, investors and bankers on the role that royalty financing and flexible risk capital can play for growing natural resource businesses in Vermont. Since its initial launch, two other regional funds have come into play serving the regional food systems market, including Fresh Source Capital and Fair Food Fund.
More diverse capital is available from individual investors, crowd funders, and philanthropic entities - all of whom are interested in helping fund innovative Vermont and regional working lands businesses. Collaboration amongst funders and investors, and ensuring the right match of capital for the scale of a business and seller market is the key to ensuring Vermont's working lands entrepreneurs have the capital they need to be successful.
The Flex Fund will continue to seek out partners for and bring resources to its portfolio companies - it's a good time to be a working lands entrepreneur seeking mission-aligned capital.
These portfolio companies are working to produce food, provide clean energy, and make Vermont a great place to live, work, and raise a family.
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Slow Money Vermont |
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The Flex Fund is a founding member of Slow Money Vermont. Slow Money Vermont is being organized through a task force connected to Vermont Farm to Plate-the statewide initiative to strengthen the food system. Slow Money Vermont aims to inform, inspire and connect individuals, businesses, philanthropists, and investors interested in building a sustainable local and regional food system and to catalyze new investment opportunities in the people, businesses and communities that contribute to a sustainable food economy. After launching in the fall of 2014, Slow Money Vermont held its first Entrepreneurs Showcase event this May in White River Junction. Innovative Vermont food system entrepreneurs presented to a sold out crowd. To learn more, or to get involved, visit the Slow Money Vermont Facebook page |
Source: Vermont Sustainable Jobs Fund. June 2015