Fourteen years ago, the Flexible Capital Fund (the “Flex Fund”) set out with a simple but bold belief: that patient, place-based, values-aligned capital could grow strong businesses, resilient communities, and deliver real returns—financial, social, and environmental.
Casey Johnson, Fund Manager, Flexible Capital Fund
Together, we proved it works – through deep collaborations, strong partnership, flexible investment instruments like revenue-based financing, and a mindset that we are all in this together.
On January 1, 2026, the Flexible Capital Fund, L3C reached its first close of ~$7 million on a $15 million offering, recapitalizing the Fund and launching our next chapter of lending and investing in Vermont and Northern New England. We continue to raise capital through the end of 2026.
We’re thrilled to welcome our new Class C Members into the Flex Fund community—and to have Casey Johnson, Fund Manager, as a new member of the team. Casey brings deep experience and perspective in impact investing and will work in tandem with me as we scale our work.
Why Keep Going With Revenue Based Financing?
We’ve seen firsthand that New England needs more revenue-based financing options because many of the region’s small and midsize businesses—particularly in rural, coastal, and working-lands communities—are strong operators but not a fit for traditional equity or venture capital. These businesses often prioritize steady growth, local ownership, and community impact over rapid scale or exit, leaving them under served by existing capital markets. Revenue-based financing fills this gap.
As an impact investment fund and Community Development Financial Institution, the Flex Fund focuses revenue-based financing as our primary investment tool. Revenue-Based Financing offers entrepreneurs in rural communities a flexible alternative to equity investment that supports growth without giving up ownership or control. Because repayments are tied to a company’s revenue, this approach aligns with the natural ups and downs of rural and seasonal businesses, easing cash-flow pressure during slower periods. It also allows founders to build long-term, locally rooted enterprises—keeping decision-making, wealth, and jobs in the community—while accessing the patient capital they need to scale sustainably.
What Did We Accomplish in the Last Decade?
As we close out Fund 1.0, the results speak clearly.
Since 2011, the Flexible Capital Fund has invested $9.2 million across 47 investments in 25 Northern New England companies—catalyzing $261 million in follow-on financing, or $35 leveraged for every $1 invested. That’s capital moving with intention, discipline, and trust in local entrepreneurs.
Our portfolio companies are the heartbeat of Vermont’s regenerative economy—from food and forest products to clean technology and climate solutions. Today, they support nearly 700 jobs, triple the number just five years ago, and generated $87 million in annual revenue in 2024.
These are quality jobs:
- 67% of companies pay at or above a living wage
- All provide paid vacation
- 10 of 11 offer health insurance
- 7 offer employee ownership or stock options
Last year alone, portfolio companies spent $10.5 million locally, strengthening supply chains and keeping capital circulating in our communities.
What’s Next?
Now, we’re looking ahead.
We know the challenges that rural entrepreneurs face in growing their companies are real. They need partners willing to take risks with them. “Risk” as a noun is danger. “To risk,” as a verb, is to be brave. And meaningful impact requires bravery.
The next decade demands builders. We’re investing in entrepreneurs who are strengthening regional food systems, unlocking innovation in sustainable forest products, breathing new life into rural communities, and driving real reductions in carbon emissions to confront climate change head-on.
To our Class B Members, our earliest believers — thank you for proving that financial return and social impact can coexist. You planted the seed, and watched it grow.
To our new Class C Members, thank you for choosing to risk for bold impact. You are carrying forward the Flex Fund’s legacy of flexible, non-extractive capital—capital that meets businesses where they are and helps them grow with integrity. You now get to help us scale.
And to those considering investing: we hope you’ll be brave with us.
And, to all, let’s move money into places that heal—and build a better future for us all.
Janice St. Onge
Flexible Capital Fund President
