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Ten years ago, we started Mission Driven Finance to close the "missing middle": a challenging chasm in the market for good businesses who needed credit to grow. Needs of missing middle businesses surpassed what they could put on a credit card or get from most Community Development Financial Institutions (CDFIs), but were too early or nuanced to qualify for commercial bank financing. We stepped up with creativity to support worthy businesses and projects with capital designed to be a stepping stone over the chasm.
Ten years later, the gap hasn’t closed, but it moved—and so have we.
CDFIs have supercharged their lending capacity since 2020, following a wave of capital catalyzed by the pandemic and the racial reckoning following the murder of George Floyd. Many CDFIs lent only up to $100k a decade ago. That ceiling has climbed considerably, and they’re now serving a broad range of businesses because of it.
But at the other end of the market, the minimum thresholds for banks and private credit funds have scooted up too. We won’t name names, but many can’t or won’t consider loans less than $5M-$10M.
The businesses and community infrastructure projects without good credit options today are bigger, more established businesses that need bigger checks, thoughtful structuring, and a lender that can partner with them and other stakeholders to grow together. So that's where we're going: up the chain, toward the complex, larger deals that conventional bankers still walk past.
Our three lines of work have all moved upmarket where our skillset can best help close financial gaps to close opportunity gaps.
We tested this model with MDF Capital Partners (MDFCP), a demonstration credit fund that we fully deployed in 2025—and what we learned there is already shaping Advance III, our forthcoming national credit fund. Here’s what that looked like for one of our partners: |
"At Builders, we back systems-responsible companies for the long term—and that conviction only works when our strongest companies have the capital to keep building through every part of the cycle. Mission Driven Finance has been a values-aligned partner to that end: flexible, non-dilutive credit from MDFCP has given our portfolio companies runway to compound value on their own timeline rather than the market's, which for an impact manager converts directly into deeper impact today and a firmer foundation for the funds we raise next. MDF understands that purpose is a competitive advantage, and it shows in how they've partnered with Builders."— Tripp Baird, Founder & Managing Partner, The Builders Fund* |
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Our founding goals haven’t changed: to use finance as a tool for change, to make markets where markets have been broken, to close financial gaps that close opportunity gaps. What’s changed is our scale—bigger checks, same mission.
If you know a deal, send it our way
As we move upmarket, here’s the shape of what we look for:
For specifics on different funds' criteria, see our website for overviews.
If you're an investor, fund manager, or GP with a portfolio company that needs working capital—or you just know a business stuck in this kind of gap—don't wait for the perfect fit. Send my colleague Cornelia a note. We'd rather hear about 10 maybes than miss meeting a great company we could help.
Be well, and take care of one another, |
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Lauren Grattan Co-founder & Chief Community Officer Mission Driven Finance |
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P.S. Our team went outside together for our annual retreat, and many of us will be on the road for fall conference season. See highlights of where our team will be here. |