Place-Based Impact Investing and Crowdinvesting

Introduction

For far too many years we, as a distinct demographic, have been looking to government and philanthropy to help relieve the vast concentrated poverty and benign neglect that has been signature of inner-city communities of color for the last 60 years. Today crowdinvesting has ushered in a new day that will allow our communities to pool our extensive purchasing power to begin the investment process and lead our communities into decades of economic and political prosperity.

Place-Based Impact Investing

Place-based impact investing has a focus on specific local or regional communities and is seeing renewed interest with the growing community capital, local investing, and crowdinvesting movements. Place-based initiatives for poverty alleviation and economic development are not new, but decades of philanthropic and public policy initiatives have rarely yielded the scope and scale of impact required to reverse decades of neglect and economic policies that crippled inner-cities. An impact investment goes a step further, it must offer to reduce homelessness, or break a pattern of criminal behavior, for example.

Multi-Stakeholder Approach

A major component of place-based investing is that it involves diverse, coordinated sources of capital that require multi-stakeholder engagement and collaboration. Using a multi-stakeholder approach and the layering of capital from diverse entities reduces the risk and inserting Regulation Crowdfunding campaigns into the mix opens the investment to the community that will be impacted to participate and build wealth along side of the impact investors.

Community Development

This will also provide an opportunity for the development of human by allowing to community member to be developers, contractors, and the bulk of the workforce. This empowers the community in multiple ways that teaches a person to fish! Crowdinvesting supported by impact investing and community capital provides an infrastructure for a worthwhile approach for job growth, innovation and business development.

Takeaway

There is also the wealth building and market principles that will allow corporations, banks, and foundations to invest as partners that have an incentive to see these communities become successful and not to view them as charity cases that will never become sustainable. The impact investment in entrepreneurship and real estate development creates a new dynamic between stakeholders and communities of color in inner-cities. Community capital, localism, and crowdinvesting  working together to improve the quality and functioning of local economies will improve cities all across the nation.

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