Creating a Marketplace
The Growth Capital Challenge
Organizing Growth Capital
Scaling top-performing NPOs on a reproducible basis (versus one-off initiatives) requires a large, reliable source of expansion capital. An expansion marketplace addresses this challenge by:
- 1. Aggregating enough capital providers to reliably match up funders to NPOs
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2. Enabling execution of a significant number of high-value expansions with consistent success and sustainable funding
Forming a Growth Capital Market
To aggregate a broad number of capital providers nationally and locally to form a marketplace, GPN is establishing and cultivating a national network of funders interested in supporting expansion of top-performing NPOs – a “Growth Funders Network”. Each year, national and local funders in the network review well-vetted and well-planned expansion plans that match their funding interests and are needed in their communities.
For each expansion initiative GPN will organize a collaborative group of funders, i.e. a syndicate, to finance the organization’s growth plan. Funders will have the opportunity to join expansion financing syndicates for specific programs – either locally or nationally. The amount raised for expansion is based on each NPO's detailed growth plan and common term sheet that is circulated among network participants. Learn more
The network is similar to an “angel” network or a network of private equity investors in the for-profit sector that invest in corporate expansion.
| Learn how to join the Growth Funders Network click here |
Network Participants:
- High-net-worth Individuals/Family Foundations
- Philanthropy Advisory Firms
- Philanthropy Associations
- Major Private Foundations
- Corporate Foundations
- Local Foundations
- Government Leaders
