Nonprofit financial innovation firm RUNWAY commits to raising
$50 million in integrated capital for
Black communities across the country
CHICAGO, May 1, 2024
/PRNewswire/ -- RUNWAY announces the launch of its first in-house
integrated capital investment fund committed to investing
$50 million into businesses,
co-operatives, and grassroots organizations building wealth in
Black communities in select regions* across the United States.
The RUNWAY ROOTED Fund (The Fund) represents a departure from
conventional investing paradigms. It is a model for reparative
finance. It serves as a vessel of restitution, a mechanism of
revitalization, and a runway for transformative shifts in finance
to close the racial wealth gap.
The racial wealth gap is a systemic issue rooted in the history
of enslavement, discriminatory laws, and racist bank policies and
practices. To redress the ever-widening wealth disparity, we need a
truly radical and restorative approach to supporting businesses in
Black communities. If the racial wealth gap is not addressed, the
median wealth of Black Americans is projected to fall to
zero by 2053, while median white household wealth will climb
to $137,000. (Source: Prosperity
Now).
Enter RUNWAY ROOTED. The $50
million Fund launches with nearly $6
million already secured from dedicated financial
institutions, investors and philanthropic funders, including
BUILDERS, The No Regrets Initiative and The Kataly Foundation. This
work is possible through collaborative investments from
values-aligned investors, funders, and partners to provide
holistic, reparative financing and advising to a national portfolio
of businesses.
RUNWAY CEO & Founder Jessica
Norwood says, "For too long, the racial wealth gap has
persisted, fueled by systemic injustices that trace back to our
nation's dark history of enslavement and discriminatory policies.
The RUNWAY ROOTED Fund is not just an investment opportunity; it's
a beacon of hope and a clarion call for change. This is the path
forward."
The Kataly Foundation is an early investor of the organization's
integrated capital investment fund. Lynne
Hoey, Chief Investment Officer of The Kataly Foundation
states, "We are proud to be an early investor in the RUNWAY ROOTED
Fund, supporting businesses, co-operatives, and grassroots
organizations that are building wealth and fostering resilience in
Black communities. If we fail to act now, the median wealth of
Black Americans is projected to plummet to zero by 2053, while
median white household wealth continues to soar. This is not just
unacceptable; it's a moral imperative to act. By supporting this
transformative initiative, The Kataly Foundation is taking a stand
for justice and equity in finance."
RUNWAY is where restorative capital meets community. Its mission
is to close the racial wealth gap by supporting funding for
businesses in Black communities. Since its founding in 2017, RUNWAY
has supported the distribution of $3.3
million in holistic, repair-centered funding to more than 50
businesses in California and
Massachusetts that have since
generated $15 million in revenue.
Initiatives include The Friends & Family Fund in Oakland and Boston, and The Real People's Fund in the
Oakland/East Bay community–all of
which feature financial innovation such as non-extractive terms,
trust-and character based underwriting.
Nina Robinson, RUNWAY National
Fund Director, explains: "We are in the business of transforming
the culture, practices, and policies of financial institutions,
investors, and lenders to cultivate equitable outcomes for Black
communities across the United
States. Our holistic approach unifies business owners,
investors, community partners, and policy makers to build truly
transformational economic solutions that inspire
self-determination, and build community wealth and power in Black
communities.
The RUNWAY ROOTED Fund also made it to this year's The
Transformative 25 (T25) list, which recognizes funds, banks, and
initiatives that represent the next generation of impact investing.
The T25 funds and initiatives go beyond the limitations of
traditional approaches to advance emerging impact frameworks in the
fields of finance and investing. Learn more at
https://rootedfund.family.
*RUNWAY supports select geographic areas in which Black people
comprise at least 20 percent of the population. The Fund will
invest in businesses without regard to the race of the business
owners or leadership in these select regions.
About RUNWAY
RUNWAY is where restorative capital meets community. We are a
financial innovation firm committed to reimagining the financial
policies and practices that hold systemic barriers in place - all
in the name of Black liberation.
Since 2017, our portfolio has distributed $1.62 million in holistic, repair-centered
funding to more than 40 Black businesses in California and Massachusetts that have since generated
$15 million in revenue. Our
innovative work includes The Friends & Family Fund in
Oakland and Boston, The Real People's Fund in the
Oakland/East Bay community, and
most recently, The RUNWAY ROOTED Fund which is our first in-house,
integrated capital fund committed to investing $50 million dollars into businesses,
cooperatives, and social impact organizations that support the
creator economy in Black communities across the U.S.
Contact:
Jamica El
***@runway.family
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SOURCE RUNWAY