Mark Edelman is a retired economics professor at Iowa State University. His area of expertise includes economic development, growth and finance. Community development venture capital groups, he said, combine nonprofit community development corporations and venture capital.
Community development corporations are nonprofits intended to revitalize communities, according to the National Alliance of Community Economic Development Associations.
Venture capital is focused on finding fast-growing firms that appeal to equity investors, Edelman said.
“It kind of marries up two segments of the financial industry into one,” Edelman said. “The community development venture capital concept is a similar kind of institution that would develop an equity fund focused on underserved populations and businesses that have opportunities to grow fast and serve larger markets by scaling, like a number of business accelerators that perform in Iowa,” he said.