IT TAKES AN ECOSYSTEM TO BRIDGE THE WEALTH GAP
INTRODUCING RUNWAY’S FIRST IN-HOUSE INTEGRATED CAPITAL INVESTMENT FUND COMMITTED TO INVESTING $50 MILLION INTO BUSINESSES, COOPERATIVES, AND SOCIAL IMPACT ORGANIZATIONS IN BLACK COMMUNITIES ACROSS THE U.S.
Since RUNWAY’s founding in 2017, we have partnered with values-aligned investors to provide holistic and repair-centered financing to advance our mission of closing the racial wealth gap for good.
Simultaneously, our work is about transforming the culture, policies, and practices of how financial institutions, investors, and philanthropic funders move capital. We’re in this to promote more equitable economic outcomes for Black communities across the U.S.
$3.26 Million
in integrated capital provided through our funding partners as of May 1, 2024 (including loans, equity and grants)
$15
Million
in revenue generated by our portfolio of entrepreneurs
Over 300
community members employed through RUNWAY Entrepreneurs
43
Entrepreneurs
supported with integrated capital + holistic business advising
750+
Advising Hours
provided for entrepreneurs by our partner organizations Uptima and Real People’s Fund
Over 50%
Women-Owned & 99% Black-Owned businesses supported
THE RACIAL WEALTH GAP
The median white household has a net worth that is
10x
the net worth of the median Black household.
For every dollar the average white American has, the average Black American has only about
17 cents
If the racial wealth gap is not addressed, the median wealth of Black Americans is projected to fall to zero by
2053
It will take the average Black family
228
years to amass the same amount of wealth that white families have today.
The RUNWAY ROOTED Fund is seeking long-term mission-aligned funding partners who care about building wealth and economic power in Black communities.
KEY TENETS OF THE RUNWAY ROOTED FUND
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We partner with values-aligned investors and funders to provide “Believe-In-You Money” to businesses in Black communities using transparent terms, character and trust-based underwriting principles, and holistic business support.
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3 million Black-owned businesses contribute over $200 billion to the U.S. economy annually and employ about 1.2 million Americans.* Even in times of economic decline, the work of Black artists, creatives, and innovators is an investment-worthy economic opportunity.
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RUNWAY takes an ecosystem approach, entrusting the leadership of local businesses, community organizers, activists, and community leaders to direct the flow of capital and build power and wealth for Black communities.
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Being in right relationship requires the acknowledgment of historical harms that the financial industry has caused Black communities, and necessitates the use of integrated capital (coordinated use of investment, grants, social, and cultural capital) to build trust and repair the harm.
*Source: Joint Economic Committee
We invite you to review our Funder Manifesto to learn how we seek to engage with investors in “right relationship.”
IMPACT GOALS & METRICS
Building Community Wealth & Power
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Entrepreneur & Community Wealth is measured by revenue growth, an increase in the value of owner’s equity, and additional investments leveraged, as well as improvements in savings, credit, retirement planning, well-being, and mental and physical health.
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The Building of Worker Power is measured by the creation of good jobs offering health benefits, flexibility, opportunities for shared leadership, and employee ownership/profit sharing.
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Cultural Production is demonstrated by the contributions of artists and makers to society. These could include showcasing art, storytelling, and collaborations across the portfolio of businesses.
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Community-Led & Powerbuilding: RUNWAY identifies community partners in each location to provide financial and political education and training, inform and guide the local power-building agenda, sit on the local credit committee, and determine which businesses receive funding. The impact is measured by local entrepreneur community engagement, policy changes, and campaign wins.
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Culture Shift: RUNWAY seeks to shift culture in the ways it works with funders and investors through its embodiment of the Funder Manifesto. RUNWAY also works with entrepreneurs, community partners, and funders to work through money trauma and develop a growth mindset. Lastly, RUNWAY promotes values-driven business growth, supporting businesses with growth that balances the needs of its people, community, and planet alongside profits.
INVESTMENT
OPPORTUNITIES
For generations, Black communities have faced deliberate barriers to wealth-building opportunities. Reparative capital acknowledges that the racial wealth gap is not a result of individual failings but rather the direct consequence of centuries of oppressive and exploitative policies, practices, and systems.
There is an urgent need to dismantle these systems of oppression and redistribute capital in a manner that promotes economic justice and empowerment for Black communities. It involves initiatives such as targeted investments in Black-owned businesses, equitable access to wealth-building and power-building opportunities, and using capital as a tool to heal, repair, and connect Black communities.
The Generational Offering
Equity offering with an annual 2% dividend
The Generational Note
10-year note with 0-1% return
The Rooted Note
7-year note with 0% interest
Alongside investment, we ask that investors consider a grant investment equal to a minimum of 15% of invested capital to support Fund Operations, Business Support, and the Fund’s Power-Building work. If grant contributions are not possible, we welcome warm introductions to other grant providers to sustain the Fund’s social impact.
