One of the largest funds designed to help generate businesses in the Appalachian region of the U.S. recently reached a milestone.
That’s because Invest Appalachia — an Asheville, North Carolina-based organization with significant Eastern Kentucky ties — announced the close of its Invest Appalachia Fund (IA Fund) at $35.5 million, per a news release.
After an initial raise of nearly $19 million, the fund added six new investors to collect an additional $16.6 million. Those new investors include Truist Bank (NYSE: TFC), the John D. and Catherine T. MacArthur Foundations and Chordata Capital.
In total, 80% of the fund’s commitments have come from investors not living in the Appalachian region, which includes portions of Kentucky, West Virginia, Ohio, North Carolina, Tennessee and Virginia.
According to the release, the fund “invests in projects and businesses that advance climate resilience, equity and community wealth-building” — while paying attention to other key sectors such as clean energy, community health/housing, placemaking and food/agriculture.
After launching operations in late 2022 following a six-year formation as a 501(c)3 nonprofit organization, Invest Appalachia has deployed more than $6 million in blended capital investment. It hopes to triple that amount in 2024.
“Thanks to commitments from investors who understand the region’s potential, Central Appalachian communities are not just dreaming of a just and resilient future — we're actively building it,” said Invest Appalachia CEO Andrew Crosson in the release. “The $35 million in this fund is more than just a financial resource for the region, it’s another important step in the national movement to show that every community deserves the opportunity to thrive.”
Crosson is based out of Asheville, but two other members of his management team listed on the organization’s site are based out of Hazard, Kentucky. They are Baylen Campbell, director of community impact, and Mae Humiston, director of grants and operations.
This news comes three months after the announcement of the Southeast Kentucky (SEKY) Angel Investment Fund.
Spearheaded by Geoff Marietta, the chief impact investor of The Foundation of Appalachian Kentucky, the fund had been in the process of raising $1million to invest in Eastern Kentucky startups, at last check.
