 |
January 2007 Newsletter Dear Friends: I hope you had a happy and healthy 2006. It has been a truly dynamic and exciting year for Pacific Community Ventures. I'd like to thank you for your continued support and give you an update on what's been happening here. PCV, a true hybrid organization, provides access to resources and capital through four lines of business. Here are a few of our key 2006 accomplishments:
We recognize now more than ever that businesses and low-income workers in underserved communities continue to face barriers that limit access to resources and capital, which leads to hindered economic growth. Pacific Community Ventures works to eliminate barriers to economic growth through our comprehensive approach. As we enter our ninth year, we will continue to focus on delivering innovative solutions that provide economic vitality and social impact where they are needed most -- in small businesses in underserved communities and with the working poor. All my best,Penelope Douglas President and Co-Founder
PCV invests in Mercados SUVIANDA
In December of 2006, PCV made a growth capital investment in Mercados SUVIANDA, a Northern California operator of Hispanic grocery stores. The company's first new store will open in San Jose in early 2007, with a second San Jose store to open in mid-2007. SUVIANDA will pursue aggressive market expansion within San Jose and beyond following the successful launch of these initial two stores. Mercados SUVIANDA brings a differentiated, innovative, and best-in-class Latino grocery concept to the Northern California grocery market. SUVIANDA stores will provide a unique combination of a themed shopping environment, carefully targeted merchandise mix and unique service offerings catering to California 's large and growing Hispanic population. Key attributes of the SUVIANDA stores will include Spanish speaking staff; a full-service meat counter offering broad selections of chilies, thin-cut meats, offal and other uniquely Hispanic meat selections; an in-store bakery and tortilleria producing fresh breads and tortillas; and an in-store cremeria offering fresh dairy products. SUVIANDA expects to bring significant new jobs to the San Jose area, with more than 200 hires planned in support of the first two stores. The company's jobs are of higher quality than those generally found in the Hispanic grocery industry, with key job quality elements including a comprehensive health insurance plan for full-time workers and their spouses, as well as services to help employees gain health insurance for their children through California's Healthy Families program. PCV to manage City of San Jose's $3 million Economic Development Catalyst Fund
The City of San Jose recently selected Pacific Community Ventures as the investment manager for its newly formed Economic Development Catalyst Program (EDCP). The relationship between PCV and the City of San Jose will support small, fast-growth companies through strategic equity investments and access to PCV's Business Advisory and Workforce Development Programs. The Catalyst Fund will help growing companies in San Jose gain traction and sustain prolonged momentum. In turn, these companies will produce returns on EDCP's investment (which will be reinvested), create more quality jobs and increase the tax base as they grow. According to Paul Krutko, director of San Jose's Office of Economic Development, the initiative heralds a new day for how the public sector supports and sustains fast-growth private sector business stimulation. "San Jose is breaking new ground with this type of investment arrangement with Pacific Community Ventures. Typical economic development incentives can provide property tax relief and other revenue sharing agreements when the companies are already established. This arrangement goes beyond that." We are thrilled to bring our double-bottom line investment approach to the City of San Jose's Economic Development Catalyst Program. New Individual Development Accounts launched in San Jose
 Graduates of PCV & LCD's IDA "Master Your Money" course in San Jose In December, PCV, in partnership with Lenders for Community Development and with the assistance of a new Citibank sponsorship, launched its unique workforce-based Individual Development Account (IDA) program in San Jose. PCV's IDA program provides financial literacy training and a matched savings program to help lower-income workers build assets. Eleven employees from three San Jose-based PCV portfolio companies participated in the six-week "Master Your Money" financial literacy training program, where they learned the basics of personal finance -- from understanding and improving credit scores to new money management techniques. Eight participants opened up special savings accounts, where their money will be matched two-to-one when used toward a qualifying asset such as a home, education, or retirement. The IDA program is a powerful resource for low-income workers and their families trying to get ahead. As one participant put it, "The IDA program encourages me. [I know now] that finances are not that difficult to understand and I have so many choices for saving and using my money wisely." Another participant felt that the IDA program not only allows him to help himself, but taught him how to help his "son, niece, nephew, and cousin" in their efforts to save for the future. Many thanks to the management teams at Sunman Engineering, Moving Solutions, and Silver Shield Security, who all played the critical role in marketing the IDA program to their employees and encouraging individuals to participate. Year-end fundraising update
As we reflect on 2006, we recognize what a critical role our institutional donors and partners played in our success this past year. We want first to thank the California State Treasurer's Office and its California Capital Access Program (CalCap) for being such important partners to PCV yet again this past year. 2006 was the second year of our three-year, $1.5 million contract with CalCap to deliver our Business Advisory Service in four markets: the San Francisco Bay Area, Los Angeles, San Diego, and Fresno. This contract is a true public/private partnership, with PCV matching all CalCap dollars one-to-one with dollars we raise. We also want to take the time to thank and acknowledge all of the foundations, corporations and institutions that supported us with grants and donations in 2006. The following institutional commitments were made during 2006:
The following grants were committed in previous years, but extended through 2006:
The following institutions were sponsors of our fall 2006 PCV Forum, Investing for Change. Creating Value and Opportunity in California:
We would also like to thank our numerous individual donors and Forum sponsors, all of whom have played a critical role in PCV's success. Thanks again to all of our institutional and individual donors who helped make 2006 yet another great year for Pacific Community Ventures! Portfolio companies making news
 PCV portfolio company Evergreen Lodge is featured in the December 2006/January 2007 Fortune Small Business article, "For-profit business, nonprofit values." The article introduces Evergreen's entrepreneurs and praises the resounding success of Evergreen's socially responsible business model. Evergreen Lodge's internship program for 18-24 year old underprivileged youths provides valuable job skills training, career counseling and opportunities to enjoy the nearby Yosemite wilderness. Click here to view the article.  PCV portfolio company Blik is featured in the January 2007 Entrepreneur article "Personalized Service Online." The article is about Meez.com's innovative online avatar service, and features the partnership formed between Blik owner Scott Flora and Meez.com founder Sean Ryan to create customized online environments for avatars. Blik created virtual wallpaper that mimics the designs of its adhesive wall decals for Meez. This partnership offers another demonstration of the PCV network at work; the two entrepreneurs were introduced by Nate Redmond, PCV volunteer business advisor and Partner at Rustic Canyon. Click here for the article. PCV hosts Net Impact Day on the Job event
On December first, PCV hosted a group of ten Net Impact members – currently in MBA programs at Berkeley's Haas School of Business, UC Davis, and the University of San Francisco – for a Day on the Job event. Net Impact is a network of MBAs, graduate students and professionals committed to using the power of business to improve the world. The Net Impact students were interested in PCV because of our unique approach to double-bottom line investing. Trevor Smith, Heidi Krauel, Beth Sirull and John Thornton from PCV each spent time with the group discussing PCV's lines of business, including our business advisory service, asset building services, evaluation consulting and knowledge sharing, and PCV's investment funds. The students also got to learn about our team members' backgrounds and leave their own resumes for consideration for PCV's 2007 Summer Associate position. PCV speaks
In December, PCV Senior Fellow Beth Sirull spoke on "The Impact of Targeted Pension Fund Investment" at the Public Pension Funds and Targeted Investing conference sponsored by the Federal Reserve Bank of Boston and the Massachusetts State Treasurer's Office in Boston. Also, in November, Beth attended the Corporation 20/20 Roundtable in San Francisco as an invited participant. The Corporation 20/20 discussion focused on public policy, non-profit and corporate initiatives to increase corporations' social return to their communities.
PCV's Los Angeles advising portfolio demonstrates the value of partnerships
 PCV's LA portfolio growth in the final quarter of 2006 reveals the value and diversity of our community partners. The six companies who joined the PCV portfolio during the latter part of 2006 all came to us through partner referrals. Our newest portfolio companies include two manufacturers; CP-MFG, a drill tooling manufacturer, and Design Guild Moulding, a manufacturer of upscale picture frame moulding. Both companies were referred by California Manufacturing Technology Consulting (CMTC), a valued PCV partner in Southern California. PCV's partnership with the City of Inglewood's Economic Development Department also resulted in three companies being accepted into our business advising program. Foam Matrix, a leading supplier of wings for un-manned aircraft, is working with volunteer PCV advisor Neil McCarthy on strategic planning for future growth. RJ's Demolition and Disposal, a family owned business that provides demolition and wood processing services, is working with Stephen Mullennix of U.S. Renewables Group on business and management operations. LAX Tacos, a favorite Inglewood eatery, will be starting an advising relationship with a volunteer advisor early in January. Lastly, Wonderland Treatment Center, a residential alcohol treatment facility, was introduced to PCV through 12 Angels Investment Group. Wonderland's advising project will be in the area of human resources and employee benefits. PCV LA counts on an extended network of over 30 talented and dedicated volunteer business advisors. Many of these advisors had a chance to meet in person and share the highlights of their advising projects during an advisor appreciation and networking event held November 15th at Shutters on the Beach in Santa Monica. If you are interested in joining PCV's growing network of Los Angeles volunteer advisors or advised companies, please contact Mari Riddle at mriddle@pcvmail.org. PCV's Advising Program closes out successful year in San Diego
 PCV San Diego's momentum continued in the final quarter of 2006 with new additions to both our advised portfolio and our growing pool of local volunteer business advisors. Two new companies came to PCV through our valued partnership with California Manufacturing Technology Consulting (CMTC). Paws for Thought, Inc. -- the first East County company to be accepted into the business advising program -- began working with Silicon Valley Bank's Tim Bubnack on strategic planning for future growth. Baja Designs, a leading producer of lighting systems and other adventure products for the off-road industry, also joined PCV San Diego's advised portfolio. PCV San Diego added to our diverse pool of business advisors in the fourth quarter, with newest volunteers bringing functional expertise in the areas of human resources and operations management. With a solid foundation of both portfolio companies and volunteer business advisors along with our deepening roots in the local community, PCV San Diego is poised for continued success in the New Year. If you are interested in joining PCV's San Diego network of volunteer advisors or advised companies, please contact Darren Solomon at dsolomon@pcvmail.org. Portfolio companies present at Los Angeles and San Diego Business Roundtables
In December, PCV Los Angeles and PCV San Diego each held Business Roundtables. PCV's Business Roundtable is made up of a diverse group of business executives, lawyers and financiers who provide portfolio company entrepreneurs with practical input and problem-solving strategies. Each quarter, one PCV portfolio company presents to the group about a specific business problem or challenge and receives actionable feedback on the issue.  On December 13th, Rodney Peña, Executive VP of Artcraft Bedding and Draperies, presented to PCV LA's Business Roundtable. Artcraft is a family owned business specializing in providing quality bedding and draperies to the hospitality industry. Rodney presented Artcraft's strategy for more aggressively building on their product and service quality to deepen existing client relationships to the panel. Roundtable panelists -- including Bob Bellack, Maria Wilhelm, Brian McAllister, Rob Swartz, Kate Sofis and guest Brad Edgar -- provided valuable feedback, including ways for the company to better prepare itself for increased competition from overseas. Rodney and his volunteer advisor, Julian Ortiz (who also attended the Roundtable) plan to incorporate the panelists' advice into their ongoing advising project. Rodney captured the sentiments of previous Business Roundtable participants when, after acknowledging the time and contributions of the panelists at the close of the event, he said, "Believe me when I say that opportunities like this are rare for small businesses."  PCV San Diego held its first Business Roundtable on December 7th at UCSD's RADY School of Management. Karen Cebreros, founder and president of Elan Organic Coffees, presented strategic initiatives relating to the company's innovation and leadership in the coffee industry and its social responsibility both domestically and abroad. Expert panelists Tim Bubnack, David Duval, Jeffrey Donahue, Peter Fisher, Eduardo Rallo and Jennifer Tankersley provided Karen with their advice on the initiatives. Not only did Karen gain valuable insight from the Roundtable, the panelists also gained a new understanding of one of the coffee industry's pioneers. |
|
|
|
