The Need for Localized Risk (Venture) Capital: Place-Based Impact Investing

The concentration of venture capital in major cities, the limited reach of both risk and venture capital in diverse communities, as well as technology's impact on blue-collar jobs has negatively affected many communities across the country causing philanthropists to grow concerned with broadening the economic opportunities on a localized or regional basis with Place-Based Impact Investing.

 

This article by Joe Milam of The Legacy Funds published in The Journal of Private Equity reviews the research and conclusions that have fueled the need for Place-Based Impact Investing, identifies the current thought leaders, and describes some of the early efforts at mobilizing “legacy capital” into communities to support the growing but underfunded innovative companies. It also explores some of the new methods, vehicles, and overlooked tax laws that can accelerate the mobilization of capital on a more geographic and meritocratic manner.