Show Me the Money

When it comes to lending, investing, granting, and donating money people want to know:
• Why should they give you the money?
• How realistic are the financials?
• When will they get their money back?

I would not necessarily say that I am in the market for “investors” per say, but I do welcome grants, donations, and sponsors. One of the main reasons I would not pitch to investors is because my company is non-profit organization. We are seeking funds with hopes of being able to foster and nurture the gifts and musical talents of underprivileged youth. Most investors or venture capitalists are looking for how will a company they give money to make that money back and sustain the growth of their company.

While searching through for potential financial sources provided by my course director, CDVC and CDFI funds struck a nerve. Both companies are geared toward community development and offer tons of helpful information in obtaining the proper financials. CDVC Funds, which stands for Community Development Venture Capital Alliance makes investment equity in businesses in economically distressed areas. They look for companies with strong management, good ideas, impressive growth potential, and promise of high financial terms. Each fund listed has its own investment criteria and process for submitting business plans. They also offer training programs, consulting services, and research development. The other company is CDFI, Coalition of Community Development Finance Institutions. I think I am starting to see a pattern here! What can I say? I love companies that find ways to assist communities in need.

Similar to CDVC, CDFI is comprised of private-sector organizations that attract capital form private and public sectors. There organizations range from religious institutions to banks. There are six types of CDFI’s with different purposes. For instance, the fund that would probably benefit my non-profit would be Community Development Loan Fund. This particular fund is given to non-profit, housing, and business developers in urban and rural lower-income communities. Both companies can greatly benefit both start-ups and larger capital investments. It is up to me to research to find out which one and what type of funding would benefit my company. One of the biggest advantages that I found helpful was that both sites provided a plethora of information on different types of funding and other resources. One piece of advice to the rising entrepreneur would be to make sure that your financials are realistic and that your numbers match what you mention in your business plan. For more information on these two companies, you can visit:
http://cdfi.org/index.php and http://www.cdvca.org/.