Village Capital
 | This article reads like a press release or a news article or is largely based on routine coverage or sensationalism. (February 2016) |
| Type | 501(c)(3) Nonprofit |
|---|---|
| Founded | Atlanta, GA 2009 |
| Currently Located | Washington, DC |
| Tagline | Democratizing Entrepreneurship |
| CEO | Allie Burns [1] |
| Website | www.vilcap.com |
Village Capital is a venture capital firm that finds, trains, and invests in early-stage ventures solving major global problems in agriculture, education, energy, financial inclusion, and health. VilCap Investments, LLC is its affiliated, managed investment fund.[2] The programs use a model referred to as peer-selection,[3] in which the entrepreneurs themselves choose the companies in the program that receive pre-committed investments of around $50,000.[4] As of October 2018, Village Capital reported that they had made over 100 investments, and that over 900 entrepreneurs had gone through a total of more than 50 programs.[5]
History[edit]
CEO Ross Baird and early board member Bob Pattillo developed the concept in 2009 as an initiative of First Light Ventures.[6][7] According to Baird, the concept drew inspiration from the "village bank" concept in microfinance, where peer groups of women in developing countries would enable small loans through a peer-review structure.[8] Businessweek described their first programs in the US and India as "if Microfinance and Angel Investing had a baby."[9]
In 2011, Village Capital launched as an independent organization with founding support from foundations active in impact investing: the DOEN Foundation, the Rockefeller Foundation, and the Monterey Institute of International Studies.[7] In 2014 the U.S. Agency for International Development Global Development Lab awarded Village Capital a five-year grant to offset the fund’s operating costs.[10]
In 2016, Village Capital closed an $18 million fund from a group including AOL co-founder Steve Case.[4]
Program[edit]
The organization's investment readiness programs are what the founders call "problem-based", focusing on a specific social problem, and recruiting businesses targeted to solve this problem. For example, a 2018 health program supported early-stage companies solving critical issues for an aging population.[11]
Village Capital programs generally consist of three four-day workshops over a three-month period. In the sessions, ventures develop their business models, learn to create and manage a team, interact with potential customers, and connect with investors, all while participating in peer-mentoring with an eye toward the ultimate peer-rank and investment. One of the principles of the curriculum is the 'Lens of the Investor' whereby entrepreneurs are put in the role of investors in order to learn to see themselves from that perspective.[12] The programs are typically in operation with local partners with sector or geographic expertise.[13][12][14]
Results[edit]
A 2016 report by the Global Accelerator Learning Initiative found that participants in a Village Capital program earned follow-on investment at a rate eight times that of entrepreneurs who were not accepted for a program.[15] The peer-selection model has also been shown to result in increased access capital for female entrepreneurs; companies with female co-founders are 78% more likely to be selected than male-only companies, three times the likelihood that women entrepreneurs will receive funding through traditional venture capital.[16]
Village Capital CEO Ross Baird won the Harvard Business Review/Mckinsey M-Prize for Management Innovation in 2013 for the innovation of peer-selected investment.[17]
In 2018, Village Capital was ranked as one of the "most connected" organizations in impact investing according to the Aspen Institute. [18]
References[edit]
- ↑ "Results". 4 February 2019.
- ↑ Cannon, H. Brevy (9 May 2013). "U.Va. Philanthropy Class Awards $100,000 in Grants to 14 Nonprofits". UVa Today News. Retrieved 18 July 2013.
- ↑ Watkins, James (November 1, 2016). "The Young Venture Capitalist Betting Big on Middle America". ozy.com. Retrieved 30 January 2017.
- ↑ 4.0 4.1 Robison, Peter (January 19, 2017). "Get Rich. Save the World. Gut Fish". bloomberg.com. Retrieved 30 January 2017.
- ↑ "Results". 23 October 2018.
- ↑ "Unreasonable Mentor Profile: Ross Baird". The Unreasonable Institute. Retrieved 18 July 2013.
- ↑ 7.0 7.1 "M-Prize: Democratizing Entrepreneurship Village Capital's Peer-Selection Model". Harvard Business Review/McKinsey. Retrieved 18 July 2013.
- ↑ "Bridging the "Pioneer Gap"" (PDF). The Aspen Institute. Retrieved 8 March 2017.
- ↑ "If Microfinance and Angel Investing Had a Baby". Bloomberg Businessweek. 5 December 2013. Retrieved 18 July 2013.[dead link]
- ↑ Price, Dennis (August 11, 2015). "VilCap Investments: New $13.2M Fund Doubles Down on Peer-Selected Investments". impactalpha.com. Retrieved 18 January 2017.
- ↑ "Results".
- ↑ 12.0 12.1 Markiewicz, David (26 June 2012). "Village Capital seeks to help entrepreneurs with social purpose". Atlanta Journal-Constitution. Retrieved 18 July 2013.
- ↑ "Edupreneurs". Pearson Affordable Learning Fund. Retrieved 18 July 2013.
- ↑ "Programs". Retrieved 18 January 2017.
- ↑ "A new accelerator report suggests that independent work is most effective". TechCrunch. 29 March 2016. Retrieved 8 March 2017.
- ↑ "Should Founders, Not Investors, Decide Which Companies Get Cash?". Forbes. Retrieved 8 March 2017.
- ↑ "Democratizing Entrepreneurship: Village Capital's Peer Selection Model". Harvard Business Review/McKinsey. Retrieved 18 January 2017.
- ↑ "Results". 11 June 2018.
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