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Community Development Venture Capital Alliance
Founded in 1993 by a coalition of foundations and public-policy advocates, CDVCA bridges the gap between institutional venture capital and community economic...
Community Development Venture Capital Alliance
Founded in 1993 by a coalition of foundations and public-policy advocates, CDVCA bridges the gap between institutional venture capital and community economic development. Kerwin Tesdell has helmed the organization throughout its history, positioning it as an intermediary that channels foundation grants, government awards, and private capital into venture-backed companies located in low-income areas. CDVCA operates a fund-of-funds strategy, committing capital to regional community development venture capital (CDVC) funds that make direct equity and near-equity investments in early-stage and growing companies. The portfolio spans multiple sectors — including light manufacturing, business services, and technology — across rural and urban markets from Appalachia to the Mississippi Delta. The underlying funds target seed through late-stage rounds, often using mezzanine and venture-debt instruments to meet the capital needs of founder-operators without traditional venture backing. In 2012, the alliance launched its Central Fund, consolidating investor commitments to back a generation of CDVC managers. The alliance has placed capital through a network of specialized regional funds. Funds in its orbit include the CEI Ventures-managed Coastal Ventures funds in Maine, which invest in growth-stage companies with a social-impact lens. CDVCA does not disclose a full portfolio list, but its model mirrors that of impact-first fund-of-funds like Ceniarth, applied to domestic poverty alleviation. In 2023, CDVCA maintained its small New York-based team and continued selecting fund managers for multi-year commitments. CDVCA's structural differentiator is its role as a market-builder rather than a pure allocator. It provides technical assistance and standardized operating metrics to the CDVC fund managers it backs — a scaffolding function that creates an investable asset class in markets the venture industry has historically bypassed. The alliance's nonprofit parent entity holds the investment vehicle as a programmatic arm, making capital deployment inseparable from policy advocacy.
General information
Firm type
Venture Capital
Year founded
1993
AUM
$350M
Location
Region
North America
Country
United States
City
New York
Corporate office
New York, NY, United States
Principals
Kerwin Tesdell
President
Sector focus
Frequently asked questions
Who runs investment decisions at the Community Development Venture Capital Alliance?
CDVCA does not manage a pooled fund or make direct investment decisions. Jean-Claude Bonneau serves as Executive Director, overseeing the alliance's operations, technical assistance, and advocacy. Investment decisions within individual CDVC funds are made independently by each fund's general partners.
How does CDVCA source proprietary deal flow?
The alliance does not source deals directly; its members — roughly 70 community development venture capital funds — each run their own origination pipelines. Members typically source investments through relationships with local banks, economic development agencies, community lenders, and government programs such as the CDFI Fund's Bond Guarantee Program. CDVCA provides the industry convenings and best-practice sharing that help members improve their sourcing.
Is CDVCA structured as a single family office or does it operate more like a venture firm?
Neither. CDVCA is a non-profit membership organization and trade association for the community development venture capital sector. It was founded in 1995 to standardize practices, provide training, and advocate for policy supporting venture capital investments in low-income communities. It does not raise capital from LPs or deploy its own balance sheet into companies.
What investment stages does CDVCA's network typically target?
The member funds in CDVCA's network primarily target early- to growth-stage companies, with typical individual investments ranging from $500,000 to $5 million. Some funds also participate in later-stage rounds alongside other impact investors or CDFIs. The focus is on companies that can generate meaningful employment in low-income rural or urban areas.
Which sectors does the CDVCA network explicitly avoid?
The alliance does not publish a sector exclusion list at the network level. However, member funds must adhere to community development requirements that preclude financing businesses with principal negative local effects, such as major layoffs or environmental degradation. Most funds avoid speculative real estate, gaming, and industries that do not produce living-wage jobs.
How is CDVCA related to the CDFI Fund and federal policy?
CDVCA's members are largely certified Community Development Financial Institutions (CDFIs), a designation from the U.S. Treasury's CDFI Fund. The alliance serves as the primary voice for the community development venture capital segment before Congress and federal agencies, advocating for appropriations to the CDFI Fund, Opportunity Zone reforms, and New Markets Tax Credit allocations. It does not administer government funds directly.
Does CDVCA maintain philanthropic structures or separate foundations?
CDVCA itself does not operate a separate philanthropic foundation. Some of its member funds may be structured as nonprofit entities with grant-making arms, but the alliance is a single 501(c)(3) non-profit organization. It receives support from private foundations, including the Rockefeller Foundation and the Ford Foundation, for specific programmatic work.
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