- Citi recently announced that it launched a $150 million Citi Impact Fund. These are the details.
Citi recently announced that it launched a $150 million Citi Impact Fund to make equity investments in “double bottom line” private sector companies that are having a positive impact on society. The investments will be primarily made in companies that have demonstrated proof of concept, built an existing customer base, secured previous funding, and exhibited the potential for scale in multiple markets. And a portion of the funds is designated for earlier stage seed investments.
For the fund, Citi will be investing its own capital in U.S. based companies applying innovative solutions for addressing four societal challenges including Workforce Development (solutions that train and connect people to careers), Financial Capability (solutions increasing access to the financial system), Physical & Social Infrastructure (solutions improving an individual’s way of life through housing, healthcare, and transportation), and Sustainability (addresses issues related to energy, water, and sustainable production).
“It takes companies of all sizes to address the challenges our society faces today,” said Citi CEO Michael Corbat. “While Citi’s global footprint and scale allow us to use our balance sheet to play an important role, smaller, newer, ‘double bottom line’ companies play an equally important role in driving change.”
Citi is also planning to actively seek opportunities to invest in businesses that are led or owned by women and minority entrepreneurs. And as part of the commitment, the seed funding will be allocated exclusively to investments in businesses led or owned by women and minorities.
“The gender and ethnic gap in the startup world is very real, with reports showing a small fraction of venture capital funding being allocated to women and minority-owned startups,” added Ed Skyler, Executive Vice President of Global Public Affairs at Citi. “Our intention is to not only help these businesses scale and thrive but to also shine a light on the investment opportunities among this pool of often overlooked, high potential entrepreneurs.”