Collaborative Funding: Collaborative Investment Strategies
Collaborative investment is the key to maintaining a consistent, long-term CED strategy. The vast majority of economic development strategies are grant-dependent, which requires that the community’s economic strategy change when the grant source or cycle changes.
Years ago, ViTAL Economy (VE) realized that unless rural communities had a more diversified funding base for CED initiatives, they would never have enough time to successfully implement them. In response, we developed a Collaborative Investment Service that allows regional leaders to create a broad-based, collaborative funding strategy. We believe that such collaborative funding strategies should be co-led by the private sector, which will be the primary beneficiary of successful asset-based CED strategies. Such involvement provides the “skin in the game” that encourages private sector leaders to “own” the region’s CED strategy.
VE Alliance members have implemented our Collaborative Investment Service in many economic regions, facilitating the move from grant-focused to investor-focused funding to increase accountability and diversify and stabilize their CED funding base. These regions have experienced a dramatic shift from majority public to majority private funding of their CED initiative costs. Even more impressive, their regional funding has leveraged an average of $8 of external investment for each $1 of regional investment.
This VE service includes leadership training plus assistance with developing an investor recruitment plan and conducting investor calls. Please contact us to learn more about how other regions have diversified and dramatically expanded their CED funding base.
Related VE Journey Point: Finance