Invest With Ignite Capital
Ignite Capital Fund II continues the mission of supporting social enterprises in Baltimore's historically under-invested communities, while expanding its reach and impact. Building on the success of Fund I, Fund II seeks to further close the racial wealth gap by providing creative and flexible capital solutions to Black/POC-led enterprises, with a focus on increasing local economic resilience and sustainability.
Target Raise: $15M
OFFERINGS:
Capital Deployment Strategy
Fund II will employ a diversified approach to capital deployment, with a strong focus on neighborhood-based investments and strategic co-investments in key sectors. These sectors include manufacturing, maternal health, early childhood education, and early-stage technology.
Co-Investment:
• Fund II will continue to work with local CDFIs, venture funds, and philanthropic partners to aggregate capital and increase investment leverage.
Check Sizes:
• Investments will range from $25K to $150K for first-time investees, and up to $250K for existing portfolio companies in the growth phase.
• Minimum interest rates will range from 3% to 6%, adjusted annually based on market conditions.
Targeted Focus:
• Increased investments in community-led development efforts such as the West North Avenue Development Authority and Cherry Hill Strong
Portfolio Impact and Growth Projections
Fund II will continue to build on the strong impact of Fund I, with a focus on scaling enterprises that create meaningful social and economic benefits. By increasing the pipeline of social enterprises served, Fund II aims to further amplify job creation, wealth-building, and community impact.
Job Creation
• Continued focus on creating both full-time and part-time employment opportunities for local residents, particularly in sectors that contribute to long-term economic sustainability.
Co-Investment Impact
• Similar to Fund I, Fund II aims to attract additional capital through co-investment opportunities, increasing total funding available for portfolio companies.
Governance and Risk Management
Ignite Capital Fund II will build upon the robust governance framework established by Fund I. The fund will continue to implement a conservative risk management strategy, including maintaining an adequate loan loss reserve, and leveraging guarantees from partners like the Abell Foundation to ensure protection for investors.
Governance Expansion
• Continued development of board, finance, and investment committees to ensure effective decision-making and alignment with Fund II’s objectives.
Risk Management
• Fund II will continue to prioritize prudent investment practices with a focus on maintaining a strong balance between risk and impact.