'Social investment platform' for Central Appalachia says it has rounded up $19 million and is already funding projects

Invest Appalachia Fund's logo

Central Appalachia has a shortage of many things, but one that doesn't get talked about much is the lack of capital for investment in businesses than can rebuild the local economy now that coal is such a smaller part of it. Now a venture-capital firm that calls itself "a regional social investment platform" says it "has secured $19 million of new investment" and is already investing in projects.

Invest Appalachia CEO Andrew Crosson told The Rural Blog that his fund has invested in real estate for downtown revitalization, "support for consumer and business lending for flood-impacted communities" in Eastern Kentucky, "solar and energy efficient equipment for a rural grocery store, and expansion of rural eye care clinics." He said in an email that he couldn't give specifics because "these deals aren't public yet" but said his priorities are "downtown revitalization/community-focused real estate, solar and energy efficiency for rural businesses and institutions, and community health facilities and social enterprises."

Crosson's press release said Invest Appalachia has involved "six years of in-depth stakeholder planning" and "is connecting local communities to national investors through a cutting-edge impact investment model . . . in an underinvested region with a history of economic exploitation." It defines its region as the Appalachian counties of Kentucky, West Virginia, Virginia, Tennessee, North Carolina and Ohio.

The release says 90% of the $19 million in the Invest Appalacha Fund is "new capital from outside the region, and the IA Fund has a target of $40M total by November 2023. The lead investors for the IA Fund are UnitedHealth Group, the Robert Wood Johnson Foundation, and the Appalachian Regional Commission," a federal agency. "Other first close investors include Sugarbush Valley Impact Investments, Laughing Gull Foundation, and Cassiopeia Foundation."

“We need an economy where everyone can see a place for themselves, and Invest Appalachia will help move the region in that direction,” Crosson said in the release. “IA is rooted in place and designed to meet the needs of Appalachia’s underserved communities. This deeply collaborative model puts impact and community interests first, while also providing a large-scale opportunity for national impact investors.”

The release added, “Central Appalachia is home to hardworking, creative, and resilient communities whose people and natural resources have fueled the economic growth of America for generations. Now, despite chronic underinvestment, persistent poverty, and other entrenched barriers to opportunity, the region has created its own momentum toward economic transformation and community revitalization. To achieve its full potential, the region requires innovative, scalable, and justice-centered investment approaches that create equitable economic opportunity for generations to come. IA is part of a movement to tell a new story about Appalachia that is led by communities and shows what is possible for the region’s future.”