Impact Report 2018 - ICA Fund Good Jobs

For more than 22 years, we have worked hands-on with high potential businesses to create good jobs that lead to economic freedom for those who need it most. We are proud of our successes over the last two years, headlined by the growth of the Good Jobs Accelerator, the more than $20 million raised by our companies, and their year over year growth.

We work with small businesses to create good jobs, but also to improve the health, wealth, and happiness of their employees and their families. Our companies not only grew their bottom lines but doubled down on their commitment to good jobs—63% of the workers in our network have access to benefits (90% in the investment portfolio), wages have increased by 16%, and the majority of our companies are owned by People of Color and Women.

No other Community Development Financial Institution possesses our proven track record or our unique combination of services. At the same time, the urgency of today compels us to think bigger. We know that the problems the Bay Area faces are regional. And so our solutions must be regional too.

Starting this year and with Oakland as our lab, weʼve begun our work to go deeper throughout the nine-county Bay Area. We're building new partnerships, listening to our entrepreneurs, and looking to quickly respond to the needs of small businesses across the region. We look forward to sharing our impact report, to sharing our vision, and most importantly, working together in the year to come.

—Sean Daniel Murphy, CEO

OUR 2017 IMPACT

Our service-led model begins with our entrepreneurs. By convening the right types of capital, partnerships, and technical support, we empower them to grow their companies, and fund good jobs.

Solomon Forest, The Red Door Catering

TOTAL REVENUES UNDER MANAGEMENT

$99,598,805

Total revenues under management:

$99,598,805

Total jobs under management:

1,254

Job growth, year over year:

53%

New jobs created:

436

Seed fund capital deployed:

$2,200,000

Companies served:

115

Companies owned by POC and women:

62%

THE POWER OF ADVISING

Our experienced pro bono advisors are central to our model, and serve as powerful allies to our companies. They leverage their expertise to provide targeted support and results-based advising for our entrepreneurs.

Reign Free, founder of The Red Door Catering, with ICA Fund Good Jobs CEO, Sean Daniel Murphy

PRO BONO ADVISING HOURS DONATED

1,205 HOURS

Pro bono advising hours donated:

1,205

Value of pro bono advising:

$602,500

Our advising hours donated increased year over year by:

24%

1 hour of advising yields 21 dollars of employee income:

1 to 21

Every dollar of donated advising yields $165 of company revenue:

1 to 165

THE MISSING MIDDLE:
MEETING THE GROWTH CAPITAL NEED

Securing growth capital is difficult. By partnering with capital providers who share our mission, weʼre not only able to fund our companies directly, but leverage our investments many times over, magnifying the impact of our capital.

Diego Gomez assembling a screen at AGW Screen Works

Ratio of investment to dollars raised:

1 to 12

Ratio of investment to dollars raised:

1 to 12

Capital deployed by Fund Good Jobs:

$2,200,000

ICA Fund Good Jobs companies seeking capital:

80%

Capital raised by Good Jobs Accelerator companies in 2017:

$6,510,000

Capital raised to date by ICA Fund Good Jobs Investment Portfolio and Accelerator Companies:

$27,370,000

POISED FOR GROWTH:
THE INVESTMENT PORTFOLIO AND THE GOOD JOBS ACCELERATOR

The companies in our investment portfolio and the Good Jobs Accelerator are a testament to the power of small businesses to create catalytic community change.

Workers at Firebrand Artisan Breads

WAGE GROWTH, YEAR OVER YEAR

16%

Average company revenue:

$2,767,751

Average hourly wage:

$22.57

Average entry level wage:

$14.03

Wage growth, year over year:

16%

Companies with benefits:

67%

Job growth year over year:

10%

Revenue growth, year over year:

16%

Companies that made an effort to hire people with barriers to employment:

79%

GOOD JOBS, GOOD BUSINESSES

In the Bay Area, the economic divide is bigger than ever. Our small business services yield real impact, driven by the singular mission of creating economic freedom for the employees who most need it.

TOTAL WAGES PAID IN 2017

$12,924,477

The kitchen at Red Door Catering

ICA Fund Good Jobs company workers with access to health benefits:

63%

Total wages paid in 2017:

$12,924,477

Education companies owned by people of color and women:

People of Color

67%

Women

61%

Education companies owned by people of color and women:

People of Color

66%

Women

33%

Companies with majority people of color and women management teams:

People of Color

60%

Women

50%

Average wages:

Education

$14.96

Accelerator

$20.82

Portfolio

$26.08

Access to benefits:

Education

52%

Accelerator

79%

Portfolio

90%

Average revenue:

Education

$683,324

Accelerator

$2,071,007

Portfolio

$4,161,238

THE ACCELERATOR: Scaling Businesses, CREATING GOOD JOBS

With the combined power of targeted advising, hands-on support, and access to our network, companies in the Good Jobs Accelerator have met over 85% of their funding need, all while growing revenues, wages, and creating more jobs, year over year.

Greg Colvin at EBY Construction building a drawer

Capital Raised by Good Jobs Accelerator Companies to date

$6,790,000

Revenue growth year over year:

31%

Job growth year over year

24%

Average revenue:

$2,071,007

Companies that provide benefits:

60%

Employees with access to health benefits:

79%

Capital raised by Good Jobs Accelerator companies to date:

$6,790,000

Percent of capital need met by Accelerator companies to date:

85%

Responding to the needs of entrepreneurs throughout the 9-county Bay Area

For 22 years, we’ve worked with companies throughout the region, generated over a billion dollars in wages, and connected hundreds of entrepreneurs to business support and capital. Today we are doubling down on our work to serve high-potential businesses. With the support of The Sobrato Family Foundation, we have begun work in San Jose and are strengthening partnerships throughout the Bay Area.