Economic Innovation International, Inc. 








Small Firm Expansion Capital Funds

Economic Innovation pioneered the design and implementation of small firm expansion capital funds, commonly known as mezzanine capital funds that today have more than $1 billion under management.  Following is a comprehensive list of funds designed by the firm, through a capital markets analysis and business plan then capitalized by institutional investors to create self-sustaining funds that invest in small and medium sized businesses throughout the country.  The National Association of Seed and Venture Capital Funds represents the professionals essential to the success of these funds. 

The Alpha Paradigm Fund:  Massachusetts Capital Resource Corporation (1977)

The $100 million MCRC was initiated by the Commonwealth of Massachusetts, designed by Economic Innovation, and capitalized, owned and managed by the Massachusetts Life Insurance Industry in 1977.


In its 25 years, MCRC has reinvested its capital more than five times, produced a substantial low teens-high 20s IRR for its insurance company investors, financed more than $500 million of small business expansion capital in more than 275 firms and generated  over 15,000 new jobs in the Commonwealth of Massachusetts.


In addition, MCRC has invested more than $300 million in disadvantaged communities of Massachusetts, triggered the turnaround of hundreds of mature firms in shoes, leather, textiles, paper, jewelry and fish processing that would have otherwise left Massachusetts, first, for lower cost manufacturing sites in North America, and eventually, overseas.  Instead, these are now thriving, high growth, technology-based firms producing high value jobs in Massachusetts.


Finally, the success of MCRC led to the creation of the $100 million, triple bottom line Massachusetts Life Initiative, which has the same insurance company investors, and invests only in low income neighborhoods in partnership with community stakeholders.  Like the 25 year old parent MCRC, the five year old Life Initiative has already successfully invested its first $100 million, and is now beginning to reinvest its corpus a second time. 

Similar Beta Funds

bullet Alaska Commercial Fishing and Agriculture Bank (1980)
bullet Arkansas Capital Corporation (1984)
bullet Arkansas Venture Capital Inc (1986)
bulletFulcrum Growth Capital Fund (2003)
bullet Genesis LA Economic Growth Corporation (1999)
bullet Indiana Community Business Credit Corporation (1985)
bullet Kansas Venture Capital Inc. (1986)
bullet Louisiana Seed Capital Corporation (1984)
bulletNevada Development Capital Corporation (1996)
bullet Virginia Economic Development Corporation (1990)