Momentus Capital Closes $171 Million Equitable Prosperity Fund

Momentus Capital has recently announced the closure of one of the largest BIPOC-led impact investing funds, the Equitable Prosperity Fund I, which has secured $171 million in commitments.

This fund aims to accelerate growth and increase social impact in underserved communities, offering a non-traditional approach to investment that prioritizes both the entrepreneur and the community.

The Equitable Prosperity Fund I

Located in Arlington, Virginia, and San Diego, California, Momentus Capital has spearheaded this initiative through its diverse family of organizations.

The fund will focus on growth-stage companies that are driving positive changes in their communities, such as improving access to healthcare, providing healthy foods, and supporting diverse entrepreneurs and employee ownership.

Ellis Carr, president and CEO of Capital Impact Partners and CDC Small Business Finance, emphasizes that the Equitable Prosperity Fund is set to "fill a market gap by offering non-dilutive growth capital to support entrepreneurs ready to scale positive impact in communities."

Strategic Investments for Social Impact

The Fund's strategy includes investing in companies that traditionally lack access to capital. By the end of March 2024, the fund has already made investments in ten companies. Noteworthy among them are:

• 4P Foods: This Virginia-based company is enhancing the availability of healthy food by connecting local and regional farmers with markets in their broader region.
• SameSky Health: Located in the Los Angeles area, it focuses on improving health equity and expanding access to healthcare in underserved communities.
• QualityWorks: Also based in Los Angeles, this company specializes in software quality services and is pushing the boundaries in AI, making technological solutions more accessible to smaller businesses.

These companies are exemplary of the type of impact the fund intends to have, creating measurable social change while also ensuring sustainable business growth.

The Investors Behind the Fund

The Equitable Prosperity Fund is supported by a broad spectrum of over 20 financial institutions, corporations, health systems, high net worth individuals, and charitable organizations.

Notable investors include Charles Schwab Bank, The Kresge Foundation, the Marguerite Casey Foundation, Northwestern Mutual, Truist, and U.S. Bancorp Impact Finance.

These backers share a common vision of creating more equitable access to capital and fostering inclusive economic growth.

Momentus Capital's Unique Approach

Unlike traditional venture capital, which often focuses on high-growth, high-return investments, Momentus Capital provides what they call "regenerative" investments.

These investments are designed to help businesses grow without diluting their ownership. The fund typically enters into revenue or profit-sharing arrangements with investees, planning an exit within 3-5 years as the business reaches sustainability.

This approach is part of Momentus Capital's broader strategy to transform financial systems to be more inclusive, addressing issues like inequality and the racial wealth gap.

Their suite of services includes loans, business advising, and technology solutions aimed at building community resilience and promoting generational wealth.