Investing in Neighborhood Entrepreneurs: Private Foundations as Community Development Venture Capitalists
Entrepreneurs in low-income and minority neighborhoods encounter numerous problems in securing capital. To address this capital gap this paper considers a new role for private foundations as community development venture capitalists (CDVCs). It is suggested that through grant making and program-related investments, foundations may assume an equity stake in neighborhood-based entrepreneurs and acting as CDVCs apply lessons from the value-added component of private equity financing, including drawing on their expertise, professional contacts and financial resources to contribute to entrepreneurial efforts in the inner city.
Year of publication: |
1996
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Authors: | Gittell, Ross ; Sohl, Jeffrey ; Thompson, Phillip |
Published in: |
Journal of Entrepreneurial Finance. - Graziado School of Business and Management. - Vol. 5.1996, 2, p. 175-91
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Publisher: |
Graziado School of Business and Management |
Subject: | Entrepreneur | Foundations | Neighborhoods | Community Development |
Saved in:
freely available