Louisville-based private operating foundation Access Ventures has given the green light to award $175,000 to a Brooklyn, New York-based startup, according to a news release.
Leap Fund — which has creating a coaching program centered around educating the public about the “benefits cliff” — has moved on to Phase II of the Reconstruct Challenge, after being one of five recipients of the first phase of the distinction in 2022, which awarded each honoree $100,000.
Workers are susceptible to reaching the “cliff” when they earn a slightly larger wage than they had been getting, but then face losing public benefits that are worth more than the increase in their income, the release says. Founded in 2018, Leap Fund develops tools, education and data for public use by serving direct service, employment and policy sectors across the country.
In Louisville, several organizations have been able to take advantage of the startup’s services since it first was named as a recipient of the Reconstruct Challenge, including the Louisville Urban League, ChooseWell Communities and South Louisville Community Ministries.
“Leap Fund is thrilled to continue our partnership with the Louisville Urban League, building on our past success together while expanding in this next phase to 16 further local partners. ... We will be able to engage more members of the Louisville service community in benefits cliff discussions together and with their clients, for a more coordinated effect,” said Leap Fund Founder/CEO Karen Schoellkopf, in the release.
Leap Fund has educated more than 600 people in the Louisville metro area, according to the release.
“We are blown away by the success of Leap Fund, through the Reconstruct Challenge, in impacting the lives of families in our community,” said Bryce Butler, managing director of Access Ventures, in the release. “The structure of the Reconstruct Challenge has been immeasurable for us in identifying innovative interventions to address ancillary costs associated with housing and supporting their early adoption and growth in our market. The second phase is a key component in fully realizing this process as we work to support them toward broader market adoption.”
Phase I is a test to see if the selected organization can apply their solutions and both achieve their goals within 12-18 months, in addition to demonstrating “the promise of growth, stability and an enduring impact within our community,” according to the release. Phase II represents a follow-on investment to aid them on their path to even greater impact and the growth of previously established community partnerships.
This marks the second time that a Phase I recipient of the Reconstruct Challenge has entered Phase II of the program, Butler confirmed via email. The first was Chicago-based mRelief, which has a platform to unlock millions of dollars in food stamps. mRelef was first named an honoree in 2019 as part of an initiative related to housing affordability.
Butler added that Leap Fund is the only grantee from the equitable employment cohort to date to receive the distinction.
Run in conjunction with Render Capital and the UofL Health Equity Innovation Hub, the most recent cohort of 15 startups — five each in three categories (food justice; maternal and child health; and health access — were named as Phase I recipients of the challenge in September during Startup Week Louisville.
Butler said the Phase II review for that cohort will take place at the end of 2024.
