Community Development Venture Capital Alliance (CDVCA)
Background
The Community Development Venture Capital Alliance (CDVCA) is a nonprofit organization established in 1993 and incorporated in 1995. It serves as the network for community development venture capital (CDVC) investing, aiming to provide equity capital to businesses in underinvested markets. CDVCA's mission is to promote the availability and use of flexible equity risk capital to fuel business growth, create quality jobs, build wealth, and enhance entrepreneurial capacity in economically distressed communities.
Key Strategic Focus
CDVCA focuses on:
- Advocacy and Education: Promoting the CDVC field through advocacy, education, communications, and dissemination of best practices via conferences, workshops, and peer meetings.
- Investment Management: Managing its own investment vehicles, such as the Central Fund, which specializes in identifying areas with untapped market potential and investing in rapidly growing businesses across diverse industries.
- Technical Assistance: Providing consulting services and technical assistance to CDVC funds to strengthen the field.
Financials and Funding
CDVCA has raised and managed over $350 million, including:
- Puerto Rico Fund for Growth: $45 million
- Innovate NY Fund: $46 million
- Other Funds: Smaller funds focused on regions such as Arkansas, Kentucky, Florida, Illinois, Nebraska, Nevada, and Mississippi, as well as national pools of capital.
In 2023, CDVCA reported:
- Revenue: $6,048,930
- Expenses: $2,147,834
- Net Assets: $16,585,656
Pipeline Development
CDVCA has invested in over 250 companies, creating more than 30,000 jobs across the continental United States and Puerto Rico. Recent investments include:
- Exum Instruments: A company specializing in advanced analytical instruments.
- ChargerHelp!: A leader in electric vehicle (EV) charging station maintenance.
- OpConnect: A company in the EV charging industry.
- Global Polymer Industries, Inc.: A manufacturer of high-performance industrial parts.
Technological Platform and Innovation
CDVCA distinguishes itself through:
- Proprietary Investment Vehicles: Managing funds like the Central Fund, Innovate NY Fund, and Puerto Rico Fund for Growth, focusing on investments in underinvested markets.
- Impact Measurement: Emphasizing quality job creation, including living wages, benefits, and wealth creation opportunities.
Leadership Team
- Kerwin Tesdell: President
- Salvatore Virgadaula: Chief Financial Officer
- Alan J. Bernstein: Senior Advisor
- Alexandria Harris: Vice President
- Drew Tulchin: Capital Markets Advisor
- Kerstin (Zijia) Du: Analyst
- Olivia Al: Venture Associate
Leadership Changes
In 2023, CDVCA welcomed Grady Vanderhoofven and Randy Kahn to its Board of Directors as part of its 30th-anniversary celebrations.
Competitor Profile
Market Insights and Dynamics
The community development venture capital sector focuses on providing equity capital to businesses in underserved markets, aiming for both financial returns and social impact. The market has seen growth due to increased interest in impact investing and the need for economic development in distressed communities.
Competitor Analysis
- Capital Impact Partners: A nonprofit community development financial institution (CDFI) providing loans, grants, and investments to underserved markets in the U.S.
- Venture Philanthropy Partners (VPP): A philanthropic organization investing in high-performing nonprofits in the Greater Washington, D.C. area, focusing on children and youth services.
- Accion International: A global nonprofit organization offering microfinance and financial services to underserved populations.
Strategic Collaborations and Partnerships
CDVCA collaborates with organizations such as:
- Angel Capital Association
- CDFI Coalition
- Investor’s Circle
- National Association of Seed & Venture Funds (NASVF)
- Small Business Investor Alliance
- Aspen Institute Economic Opportunities
- Chamber of Commerce Foundation Talent Pipeline Management
Operational Insights
CDVCA's strategic considerations include:
- Investment Focus: Targeting underinvested markets to create quality jobs and stimulate economic growth.
- Capacity Building: Providing education, networking, and technical assistance to strengthen the CDVC field.
- Policy Advocacy: Promoting public policies that support community development venture capital investing.
Strategic Opportunities and Future Directions
CDVCA aims to:
- Expand Investment Portfolio: Increase investments in diverse industries and regions to maximize impact.
- Enhance Impact Measurement: Develop and implement metrics to assess the social and economic impact of investments.
- Strengthen Partnerships: Collaborate with more organizations to leverage resources and expertise for community development.
Contact Information
For more information, visit CDVCA's official website.
