NextSeed is a company that has been a pioneer in crowdfunding since the company’s inception and this has not gone unnoticed. Youngro Lee, NextSeed CEO and long time member of Collaboration Capital’s rich network of collaborators, has been appointed to serve as a member of the SEC Small Business Capital Formation Advisory Committee (https://www.sec.gov/news/press-release/2019-61). This committee was established by Congress via the SEC Small Business Advocate Act of 2016 to assist the SEC on small business capital formation issues. This position is a 4-year term and will afford Mr. Lee opportunity to engage directly with the SEC Commissioners and others on how to improve US securities laws to support private capital-raising for small businesses.
Youngro Lee is the only professional from the online investment platform/investment crowdfunding industry named to this committee and we at Collaboration Capital agree that this is a strong indication that NextSeed is doing things the right way. This appointment is a tremendous honor for both Youngro Lee and NextSeed and the appointment will provide much credibility as NextSeed pursues increasingly more sophisticated opportunities in service of their investors and the users of their platform.
Many of you know by now that Collaboration Capital’s differentiated practice model is part of what makes us unique. By investing in intellectual property and the specific skills and areas of expertise brought together by the individuals and companies in our network of collaborators, we believe that we can make an ever-greater impact in our world and our portfolios.
One of these collaborators who works diligently in pursuit of both profit and purpose is Community Capital Management. The team at CCM just released their Spring 2019 ESG and Impact Investing Newsletter. Take a look at the full publication at the link below:
Collaboration Capital Portfolio Contributor SixUp receives worthy mention in Harvard Business Review article “The State of Socially Responsible Investing.”
Sixup is taking tremendous strides in giving securitization new life as a tool for social impact. By providing an education finance platform, founder Sunwoo Hwang and the team at SixUp are giving high-achieving students who are from low-means environments and who are quite often first-generation students the ability to attend four-year colleges and universities. The families of these students frequently don’t have credit scores or would, because of their income, otherwise find themselves unable to secure funding for the ever rising price of higher education.
It’s not just about providing access to capital though- SIXUP takes a vested interest in these student’s success. As the Harvard Business review points out:
“Along with loans, Sixup provides students with tutoring, job-matching, and other counseling. Sixup currently counts Goldman Sachs as its largest lender. Once it has reached $100 million in total lending assets, it will test the market with a securitization—a critical milestone towards scale. Over time, as their lending assets grow, Sixup plans to tap into the broader fixed income markets, as well as more traditional securitizations. If successful, it has the potential to mobilize more than $1 billion towards the Future-Prime market providing thousands with a stronger pathway to economic mobility.”
Please take a moment to read the full article at the link below. To discover more about the network of collaborators and portfolio contributors who make Collaboration Capital a success, simply fill out the contact form HERE.
You may shop and eat local but do you invest local? Houston-based NextSeed started in 2015 and has made investing locally possible in a way that wasn’t available before. NextSeed is a community-driven investment and financing platform, which means it’s the newest, and one of the only forms of true local investment available to the average Houstonian. It’s changing the way people in Houston—and across the US—invest their money.
To Jacob Haar, a market that under-lends to businesses owned by women, minorities and veterans is inefficient. To seize that opportunity, Community Investment Management, a San Francisco impact investment firm, is financing a new crop of lenders using data and technology to better understand small-business borrowers.
Techies are used to making the impossible possible. Bankers, not so much. But I’ve been struck by a common theme in many of the recent deals ImpactAlpha has rounded up in our Dealflow column, as well as in a bunch of conversations with financiers. Things that were impossible even a few years ago are now possible, and profitable.
One of the most pressing challenges we are facing in the startup ecosystem today is the staggeringly low number of diverse founders receiving VC funding. In the last year, investors awarded women a quarter of the investment they were seeking– male founders, in turn, received half. The numbers are even shockingly lower for founders of color. To challenge this, several VC firms have been working through these issues and coming up with innovative ways to reach and invest in diverse teams.
Electric vehicles are a disruptive force that we believe will create massive change (and opportunity) in the auto industry over the next decade. The success of Tesla (at least from a product perspective, if not yet a financial one) is the key catalyst that has triggered the electric vehicle revolution.
The Millennial generation is set to receive the reins as the US undertakes the greatest generation-to-generation wealth transfer to date. The Millennial generation- those born between the early 1980s and the early 2000s- has a different take on the primary role of business compared to previous generations.
Impact investing continues to gain traction, with a great deal of focus on the inspiring stories of impact across a range of important issues such as climate change, women’s empowerment and inequality. But the field has struggled to prove its worth beyond the rarefied enclaves of private investments.