San Diego CA— Founders First Capital Partners (FFCP), an impact fund focused on minority-led and underserved small businesses, today announces their Racial and Social Economic Equality Initiative (RSEEI) to address disparities in revenue and job growth among businesses led by underrepresented founders.
With $100 million in debt funding from Community Investment Management, Founders First Capital Partners is expanding its support for businesses led by underserved and underrepresented entrepreneurs.
Founders First Capital Partners primarily focuses on businesses led by people of color, women, and military veterans, and businesses located in low to moderate income areas less connected to the traditional funding networks. Founders of such businesses are launching companies at a rate three to five times higher compared to that of businesses started by young, white males, yet are severely lagging behind at as it relates to revenue growth and livable wage job creation. Overall, these businesses have traditionally faced challenges when it comes to economic advancement, including lack of capital resources—they receive less than 2% of growth capital and less than 20% of debt capital (AMEX, 2018).
Through Founders First Capital Partners proprietary business accelerator programs, learning platform, and growth methodologies, these underserved service-based businesses grow into profitable, tech-enabled companies. Their mission is to empower underserved groups of business owners by providing them with access to growth capital, expertise, and resources to enable them to build sustainable, profitable, and accretive legacy businesses.
Along with its accelerator program, Founders First Capital Partners offers businesses revenue-based financing, an innovative funding mechanism that generally requires entrepreneurs to pay a fixed percentage of revenue up to a predetermined cap. This solution offers small businesses a highly attractive alternative that aligns with business performance, self-liquidates, and does not dilute ownership from business proprietors representing underserved backgrounds and communities.
“The recent protests have put a spotlight on chronic cancer of injustices and inequalities that have plagued this country for over 401 years,” said Kim Folsom, founder and CEO of Founders First Capital Partners, LLC. “As a black women, I am horrified and demoralized to see the continuous violence that is plagued upon black people, with minimal conscience. I am also encouraged to see the diverse level of participation in recent protests of the represented events. As a serial tech entrepreneur and capitalist, I know the power of creating wealth by seizing unique market opportunities. I have leveraged my expertise to advance the mission at Founders First. We are addressing the huge gap in economic social and racial gap in urban communities where the diverse business owners we support are becoming the leaders and largest employers. With the launch of this new initiative it allows us to fund, grow, and build wealth in communities that are underserved, under capitalized, under resources and most devastated by the global pandemic. Core to our platform is doing the hard work necessary to lead the change we want to see in celebrating the value of inclusivity and social economic equality.”