The Cleveland Chain Reaction partners introduced a new investment structure for Season #3 that will improve the benefits for the winning small businesses as well as for the host neighborhood. JumpStart Inc. and Greater Cleveland Partnership will serve as lead investors, with each pledging $125,000 to invest in the winning small businesses. The partners also created a set a standard terms for all of the businesses receiving an investment.
Additionally, private investors from the community have been invited to the Business Pitch Showcase in August, where the Top 20 Chain Reaction applicant businesses will make their pitch for investment. These investors are welcome to join in with “side-car” investments to the partners’ selections. The private investors may invest a minimum of $10,000 in as many companies as they desire and are encouraged to adhere to the standard terms that are established.
In creating this new investment structure, the partners are providing equal opportunity for all businesses receiving investment. This new format ensures that a minimum of $250,000 of initial investment is made to growing small businesses and opens the opportunity for an unlimited amount of private investment to follow.
Over $1.2M has been directly invested in small businesses through the first two seasons of Chain Reaction, which took place in Slavic Village (2017) and Old Brooklyn (2018).
Cleveland Chain Reaction thanks these investors for their past involvement with this neighborhood economic development project. We look forward to continued participation from them and others moving forward!
CHAIN REACTION INVESTORS (past and present)
Greater Cleveland Partnership