RuralWorks impact fund brings new capital to rural communities
Since 2014, CoBank has committed more than $335 million to 20 independently managed RBICs, encouraging opportunities in our country’s often underresourced rural communities. One of these is Vermont-based RuralWorks, the only RBIC explicitly designated as an “impact fund,” meaning that it not only selects investments based on a social and environmental mission but works with the companies it invests in to help them achieve their own social and environmental impact priorities. RuralWorks seeks out successful rural businesses that focus on sustainable practices while generating community wealth and economic resilience in rural America.
“Many rural communities have impressive community development strategies,” said Skip Wyer, RuralWorks’ chief investment officer. “Groups of individuals and institutions come together to create an innovative ecosystem and an entrepreneurial support system. Companies are often able to achieve success as startups, finding mentorship and small amounts of capital to get started. They gain traction and prove out their product, service or technology, but when they get to the point of having ten to 15 employees and a great opportunity for growth, they often find that financial opportunities in their local ecosystems are tapped out. We wanted to invest in local businesses and the communities that surround them, bringing fresh sources of experience, access to resources and, of course, much-needed equity capital. We believe this kind of investment creates a blueprint for a rural renaissance — a blueprint designed to grow businesses, build economic mobility and generate community wealth and resilience.”
The Farm Credit banks have been absolutely critical to our existence, particularly during the period in which we were raising dollars for our fund.
With its focus on rural investments, the mission of RuralWorks aligns strongly with that of the Farm Credit System, making it a natural partner for CoBank and other Farm Credit institutions. In fact, CoBank’s Dave Dornbirer, vice president of mission investments, played an important role in the evolution of RuralWorks as an RBIC. Along with founder Bob Zulkoski and chief engagement officer Louisa Schibli, Wyer first met Dornbirer when he visited the company six years ago.
“Ask anyone involved with RuralWorks and they will say that Dave has been a key individual supporting us from the start,” said Wyer. “He gave us confidence that the RBIC program truly aligned with our vision for RuralWorks. He stood by us through the long process of getting our RBIC approval and introduced us to others in the Farm Credit System. The Farm Credit banks have been absolutely critical to our existence, particularly during the period in which we were raising dollars for our fund. Universally it is challenging for a first-time fund manager to raise capital for their first fund. It can be hard for even established funds to do so. I can say without any doubt that had it not been for the RBIC program and the support of CoBank and other Farm Credit banks, we wouldn’t be here.”
“Investing in rural communities is an integral part of CoBank’s mission,” said Dornbirer. “The success of our farmers, ranchers, agribusinesses and utility service providers is integrally tied to the well-being and prosperity of the communities they call home. By ensuring that rural America has the financial capacity to meet the changing demands of business and community, we are doing our part to help these communities grow and thrive.”