The LACI Impact Fund (LIF) was launched in 2019 as a tool to further the impact of startups participating in LACI’s Incubation Program. Because LACI is a non-profit incubator, the Fund is a separate legal entity with an independent Investment Advisory Board. The Fund is a follow-on investment vehicle that participates on the terms set by a lead arms-length investor who has conducted significant financial due diligence.
- Current and alumni portfolio companies are eligible to apply for investment when they have an open and active round with designated arm’s-length lead investor who has set the terms and conducted rigorous financial due diligence. The lead investor has to have invested a minimum of $200,000 in aggregate.
- To be considered eligible, companies must also have a demonstrated commitment to impact, including strong impact metrics in job creation, environmental impact, commitment to company social values and inclusion, and diversity in senior management and board composition.
- Finally, companies must be in good standing with LACI’s program requirements, including outstanding fees, surveys, and other reporting requirements.
Investment Terms & Amount:
The Fund invests between $100,000 and $500,000, and does not make an investment that is more than what the lead has invested. The fund follows on to the terms set by the lead investor.
The internal fund advisory team, comprised of LACI staff, packages the application data for the Investment Advisory Board to review and make their decision to invest. This includes an Impact score and supporting documentation, deal terms, current burn and run rate, narrative around use of funds, interview notes from their conversation with the lead investor, key competitors, and other relevant information.
The Fund’s Investment Advisory Board meets on an ongoing basis to review investment opportunities. The IAB will meet as needed to review an investment opportunity since the timing is led by startup and their lead investor.
How to Apply
First, any portfolio company should keep the LACI team informed when they have an open and active round so that we can support you in your fundraising efforts. When a lead investor is secured, a company can fill out the application form here.