Investing

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Halcyon takes no equity from ventures during their fellowship. The addition of funding vehicles for Halcyon’s fellows and other impact-driven business founders comes as a result of Halcyon fellows sharing that funding is a major need.

So when founders are ready to scale, have a strategy for doing so, and know what kind of funding they’re looking for, Halcyon’s funding vehicles provide a range of structures for infusing capital into their ventures.

Our approach to funding

When

We de-risk investments by providing hundreds of hours of support for ventures before we consider investing. We get to know founders well during the course of their Halcyon fellowship. Founders are able to connect with the Halcyon investments team to explore which funding vehicle might be a right fit for them given their venture’s stage and unique needs.

Why

All our funding vehicles are based on the hypothesis that impact-driven ventures have a competitive advantage compared to traditional businesses. Being grounded in impact makes these ventures stronger, more competitive investments.

How

Not every venture or founder needs the same capital – some founders are in a position to raise a friends and family round, while others are not. For some founders, venture capital is the right tool – for others it isn’t. Halcyon’s combination of funding vehicles support founders with a range of needs.

Funding gaps

There is so much more research to be done around funding gaps that impact women founders, founders of color, and other underrepresented groups. In 2020, Black founders received just 0.6% of all venture capital. In 2021, women founders secured just 2% of venture capital in the U.S.

Halcyon’s fellowship programs already provide nondilutive stipends to help narrow those gaps – 58% of our ventures have a woman founder and 79% have a founder of color – and funding vehicles allow us to extend that work.

Halcyon Fund

In February 2022 Halcyon closed a $5 million impact fund investing in Halcyon Fellows’ ventures. The Halcyon Fund launched with a portfolio of 13 investments and an average initial investment of $100,000.

Halcyon Angels

The Halcyon Angels are a sector-agnostic network of active angel investors who gather every other month to hear pitches from a curated group that includes both Halcyon Fellows and other impact-driven business founders.

Halcyon Microloan Fund

Launched with the support of the Kimsey Foundation, the Halcyon Microloan Fund provides loans of up to $25,000, with below-market interest rates and requiring no collateral, to Halcyon ventures in the Washington region that want an alternative to traditional funding vehicles for early-stage businesses.