2015 annual report · 2017-05-03 · bii portfolio member. cero successfully raised $340,000 to...
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2015 ANNUAL REPORT
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Victoria Amador of Tremendous Maid is seeking to reverse her industry’s exploitative labor practices by paying her cleaning workers—mostly low-income and immigrant women—a fair wage and full benefits. Diane Ivey is changing the face of textiles by manufacturing hip, urban-inspired yarns through Lady Dye Yarns. And the Dorchester Food Co-op is inviting neighbors to come together as owners and investors to launch a healthy, locally sourced grocery store.
What we’re learning from our entrepreneurs is that it is possible to be economic trailblazers. The companies we invest in are willing to challenge the status quo, to question assumptions and to courageously experiment with new ideas and models in order to build businesses that have meaningful and lasting impacts on the people and communities they serve.
But it isn’t easy. If we want to create real prosperity for communities that have been excluded from economic opportunity, then we have to strengthen the networks of support around these entrepreneurs.
That’s why we’re committed to investing in incubators and accelerators like Commonwealth Kitchen and Smarter in the City. It’s why we believe in rebuilding social networks and grassroots organizing through the Solidarity Economy Initiative. And it’s why we think it’s critical to have a dream of what our economy could be—and a practice for finding our way there—through the Ujima Project.
The Boston Impact Initiative is not just an investment fund. We are organizers, field-builders, entrepreneurs, capital partners and friends alongside all of you who work so hard to address the growing wealth gap and ecological challenges of our community.
As we celebrate our 2015 achievements, we look forward to growing a more vibrant and powerful local economy movement in Boston and beyond.
Warmly,
Deborah Frieze, Founding Partner
DEAR FRIENDS,
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ARTS & CULTURE
IMPACT CAPACITY BUILDING
INVESTMENT OVERVIEW: BY TYPE AND SECTOR
EQUITY
DIRECT LOANS
DIRECT GRANTS
MICROFINANCE & COOPERATIVE FUNDS
MICROFINANCE & COOPERATIVE FUNDS
FOOD & AGRICULTURE
ENVIRONMENT & ENERGY
PROFESSIONAL SERVICES
HISTORIC INVESTMENTS
BY TYPE ($2.0M)
MANUFACTURING
34%
22%
32%
2015 MICROFINANCE OUTCOMES
MICROFINANCE PARTNER LOAN SIZES LOANS DISBURSED $ DEPLOYED % MINORITY % WOMEN
ACCION EAST $1,000 - $50,000 24 $181,183 92% 67%
GRAMEEN USA $500 - $2500 103 $165,500 100% 100%
HISTORIC INVESTMENTS
BY SECTOR ($2.0M)
3%
38%
10%
30%
13%11%
4%
3%
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PORTFOLIO STORIES: TREMENDOUS MAIDS
Tremendous Maid is a family-owned and operated residential and commercial cleaning business based in Dorchester. Through the leadership of Dominican co-founders Rosa Tejeda, Victoria Amador and Nisaury Amador, Tremendous Maid provides quality wages, employee benefits, and green cleaning
services in an industry where customer demand for low prices incentivizes low wages, poor employee benefits, and other price-cutting practices. Tremendous Maid has received numerous accolades for their quality cleaning services, entrepreneurship, and employment opportunities for immigrants. The Boston Impact Initiative provided a growth capital loan to stabilize financing and expand services.
“BII helped me when I needed it the most. It was a very
difficult time —I spent days without sleep because I was
constantly worried that I didn't have enough to cover payroll
while going through a building purchase and renovation in
Dorchester. Due to unexpected circumstances, the building
ended up costing us much more than anticipated. The loan
came in right on time. We have since used the funds to
continue marketing to obtain new accounts. Since receiving
the loan we have added 16 commercial accounts to our client
list and commercial sales continue to grow. We are extremely
grateful to the BII team for their attention to us and support.”
Victoria Amador Co-founder and CEO 3
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Lady Dye Yarns is Boston's premier urban yarn
producer. Diane Ivey, the entrepreneur behind Lady
Dye, hand paints her eco-friendly yarns in vibrant
colors inspired by urban art and culture. The
Boston Impact Initiative provided an early loan to
help scale national marketing and sales. This is BII’s
first loan from our Social Impact Fund, a
partnership with Third Sector New England to
provide loans to early stage, mission-driven
entrepreneurs seeking to change Boston
communities for the better. Owner Diane Ivey has
grown the number of stores that stock her Lady
Dye yarns from two to over 40 stores.
PORTFOLIO STORIES: LADY DYE YARNS
“When I first connected with BII, my business was in a standstill because I did not have the cash flow to attend trade shows. In addition, my business model was in need of an update to reflect the changes and knowledge I’d learned the previous two years being in my industry. I was able to sit down with Glynn and map out a realistic business plan. Since
working with BII, I’ve put together an advisory board, and I’m appreciative of that. Furthermore, my biggest issue was getting funds to buy raw material to put together samples for yarn stores. The BII loan helped me do that and attend another national show.”
Diane Ivey Founder and CEO 4
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In 2013, Boston Impact Initiative made an early matching grant for a feasibility study to plan the new Dorchester Food Co-op, a
community- and worker-owned grocery store and food hub. In 2015, the Dorchester Food Co-op began selling up to $500,000 in preferred stock through a direct public offering (DPO) to local investors to capitalize a store opening in 2017. With a minimum investment of $2,000, community members help finance the build-out of the new store, equipment purchases, early-stage staffing, and working capital to provide a solid foundation for the opening of the Co-op. The Co-op aims to return a targeted dividend of 3 percent after the first full year of store operation.
Direct Public Offerings
The Dorchester Food Co-op's use of a Direct
Public Offering (DPO) follows the success of
CERO, another Dorchester based co-op and
BII portfolio member. CERO successfully raised
$340,000 to launch its organic composting
operations. BII has been an early investor in
both of these local DPOs—as well as a strong
advocate of this inclusive capital tool. BII will
continue to promote DPOs as an investment
vehicle that increases access to capital,
community ownership and local engagement.
PORTFOLIO STORIES: DORCHESTER COOP
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FRESH FOOD GENERATION brings healthy, affordable and culturally relevant cuisine to Boston's low-income communities of color through a catering business and food truck. Based in Dorchester, Fresh Food Generation is made up of 90 percent people of color and is inclusive of employees with criminal records. Over 50 percent of their products and services are procured locally.
88 ACRES manufactures healthy, allergen-free snacks crafted with simple, wholesome ingredients. With its manufacturing operations based in Dorchester, 88 Acres aims to scale their business while producing the highest quality foods and creating employment and career opportunities for the local population.
SPOTLIGHT: LOCAL FOOD
The demand for local food is growing exponentially.
So is the response from urban food entrepreneurs. By investing in local food businesses, the Boston Impact Initiative is supporting the development of a healthier and more equitable local food ecosystem: growers, manufacturers, distributors, wholesalers and retailers. Our portfolio includes six food-related businesses.
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JUBALI produces wholesome organic juices, herbal teas, and dairy-free smoothies. They believe food is a crucial element of the more beautiful world we want to create. Jubali is committed to running a business that is carbon neutral, measuring the environmental impact of their economic activity and working with farms and other organizations to restore carbon.
CITY FRESH FOODS is a 20-year-old, nationally recognized enterprise that believes that everyone, regardless of economic status, should have access to healthy food. City Fresh Foods delivers fresh, wholesome meals to charter schools, eldercare facilities and other organizations throughout the Boston area. One of Roxbury’s largest employers, City Fresh sources local producers and advocates for increased local food production.
COMMONWEALTH KITCHEN is a community-based culinary incubator in Dorchester that provides shared space to more than 40 local wholesalers, food trucks and caterers, including many of BII’s food-based portfolio companies. More than 70 percent of businesses located at Commonwealth Kitchen are owned by women and/or people of color. Together, businesses have created hundreds of new local jobs with low barriers to entry and meaningful career opportunities.
City Feed and Supply is a neighborhood market, cafe, and deli that provides healthy, local, specialty and organic food options. City Feed and Supply aims to be a positive influence in its neighborhood by creating strong relationships with local suppliers and functioning as a space for urban residents to come together.
“The Boston Impact Initiative has been a vital partner in our effort to build and scale our work. Not only did they invest early patient financing into our own operation at a critical moment, they also provide investment to a number of our incubator companies as well as coaching and business counseling to our members. The BII team remains a consistent and important thought partner to our entire Board and Staff. We are incredibly appreciative of their commitment and support.”
Jen Faigel Executive Director, Commonwealth Kitchen
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SPOTLIGHT: THE UJIMA PROJECT
Ujima envisions an ecosystem designed to strengthen local economic control and re-center economic power in low income communities and communities of color. Ujima is a Swahili word, the Kwanzaa principle for “collective work and responsibility.” It inspires us to take responsibility for our own communities, to see our neighbors’ problems as our own, and to build collective power to solve our challenges. Through the Ujima Project, community members explore good business standards, consumer organizing, anchor institution procurement, and a community controlled capital fund. Ujima aims to foster a new economy based on democracy, sustainability and justice.
We are proud to co-convene the Boston Ujima Project with the Center for Economic Democracy and City Life/Vida Urbana.
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TEAM Deborah Frieze, Co-Founder and Managing Partner Michael Frieze, Co-Founder and Partner Matthew Kahn, Chair, Investment Committee Glynn Lloyd, Managing Director Xau Ying Ly, Portfolio Manager Aaron Tanaka, Senior Advisor Macken Toussaint, Attorney (Riemer & Braunstein) Richard Loewy, Attorney (Ropes & Gray)
PARTNERS Accion East BALLE Riemer & Braunstein, LLP Ropes & Gray RSF Social Finance Third Sector New England
PORTFOLIO, PARTNERS & TEAM
PRO-BONO BUSINESS ADVISORS Mark Bouckley Lee Goldberg Mark Lohr Nii Amaah K. Ofosu-Amaah Roger Patkin
PORTFOLIO BII’s current portfolio of businesses and organizations receiving investments and grants in 2015:
88 Acres 99 Degrees Custom Accion All Towns Insurance* Boston Center for Community Ownership (BCCO) Chocolate Therapy* Cooperative Energy Recycling and Organics (CERO) City Feed & Supply* City Fresh Coop Fund of New England Commonwealth Kitchen* Dorchester Co-op* Fields Corner Business Lab* Food Project* Fresh Food Generation* Grameen Boston Initiative for a Competitive Inner City* Jubali* Lady Dye Yarns* Renew Energy Partners Salamander Cafe* Smarter in the City* Solidarity Economy Initiative* Tony Williams Dance Center Tremendous Maid*
*New and follow-on investments in 2015
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| PHOTO CREDITS: TREMENDOUS MAID (0,3) | DORCHESTER COOP (0,5) | JUBALI (0,7) | SMARTER IN THE CITY (0), LADY DYE YARNS (4) | 88 ACRES (6) | FRESH FOOD GENERATION (6) | CITY FEED AND SUPPLY (7) | CITY FRESH FOODS (7) | THE UJIMA PROJECT (8) | BOSTON IMPACT INITIATIVE (9) | ALL IMAGES COPYRIGHTED AND USED WITH PERMISSION |
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