Since its pilot launch in 2021, Revolve Fund has raised $1.9 million to help Black, Latinx, Indigenous and other people of color increase their access to capital. Founded and managed by James Wahls, Revolve Fund is a philanthropic initiative that assists persons of color seeking to open, grow or scale their business or nonprofit. Wahls brings over 15 years of experience in the philanthropic, impact investing and legal sectors.
“For entrepreneurs and nonprofit leaders of color, systemic barriers disproportionately prevent their businesses and nonprofits from equitable capital access,” said James Wahls, founder and managing director for Revolve Fund, and senior vice president of programs and initiatives at Mission Investors Exchange. “Revolve intentionally deploys ‘friends and family-like’ funding to increase capital access, a critical factor for success.”
Founded in 2020, Revolve offers interest-free, recoverable capital to support Black/African American, Latinx, Indigenous and other people of color-led businesses, nonprofits, and financial intermediaries. To date, the fund has deployed more than $560,000 nationally.
Research indicates families of color often have less disposable income for funding businesses and nonprofits. In 2019, the median net worth of white families was 7.8 times that of Black families. Latino-owned businesses are more likely to experience funding shortfalls than white-owned businesses. Revolve Fund’s catalytic funding increases grantees’ ability to secure additional capital. Early data shows that Revolve Fund grants and related advisory support have resulted in an 8 to 1 increase in capital access for businesses and nonprofits led by people of color.
“Our recoverable grant product provides one of the most flexible forms of capital,” Wahls said. “However, we are more than a capital provider. Through our partnerships and industry reputation, Revolve helps its grantee partners secure additional resources and capital.”
Revolve provides its recoverable grants directly to organizations or co-invests with certified community development financial institutions, nonprofits, or venture funds. The approach maximizes Revolve Fund’s industry expertise and grantees’ sourcing, underwriting and portfolio-monitoring capabilities. Maryland Philanthropy Network, the statewide philanthropy serving organization, fiscally hosts Revolve Fund, which allows the fund to receive institutional philanthropic and other charitable contributions.
With stints at the Annie E. Casey Foundation in Baltimore and the W.K. Kellogg Foundation in Battle Creek, Michigan, Wahls has managed or co-managed $250 million-plus in impact investing allocations comprised of grant, equity, debt and direct investments. In addition to Revolve, notable strategies he has designed or led include the Baltimore Small Business Support Fund and the Detroit Entrepreneurs of Color Fund. Wahls also executed investments in affordable housing, financial inclusion, quality job creation and community development.
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