Community Development Venture Capital Alliance

Virgin Islands Capital Resources, Inc.
325 Chestnut Street, Ste 1110, Philadelphia, PA 19106
Telephone: (267) 671-0900
Fax: (267) 671-0909
Website: www.seslia.com
Email: sesmarcia@erols.com

Key Personnel:
Justin Moorehead, President
Thomas Cook, Comptroller

Established: 1997

Total Committed Capital: $1.7 million, with a goal of $5 million by 2005.

Amount Invested: $160,000

Geographic Focus: US Virgin Islands

Background
VI Capital Resources, Inc. (VI Cap), affiliated with Seslia & Company (an investment banking advisory firm), is a non-profit organization that provides financing to startup and expansion phase business ventures in the US Virgin Islands. Eligibility for funding is directly tied to the economic benefit the venture is assessed as providing to the local community. Financing can be structured as a loan (debt), as an ownership investment (equity), or as some combination of these two options. VI Cap operates similarly to most venture capital funds, with two important differences. First, the Fund pursues two separate but related bottom lines: a) financial return, and b) community economic development. Second, the Fund restricts its investing to businesses licensed in the US Virgin Islands. The Corporation is non-intrusive in the management of its portfolio companies and is supportive of its investments. It provides technical assistance to help secure and implement funding proposals as well as strong financial and/or management assistance to projects or businesses it funds.

Social Mission
VI Cap's mission is to provide financing to startup and expansion phase business ventures in the US Virgin Islands with the goal of economically benefiting the local community. In evaluating investments, VI Cap considers ownership, population served, and employment practices. For example, plans that employ and/or train individuals with incomes below the median for the Virgin Islands are recognized as providing a strong community benefit. Also, a business that significantly expands services or employment opportunities is also evaluated as having a strong community benefit.

Investment Information
VI Capital Resources has made two investments to date, totaling $160,000. VI Cap restricts its investing to businesses licensed in the US Virgin Islands, has no industry preferences, and typically makes investments of between $50,000 and $250,000. Startup ventures are generally restricted to a $25,000 maximum investment. Expansion financing will usually be limited to $300,000. The Fund invests in businesses at all stages of development. VI Cap attempts to participate as much as possible with other financial institutions in funding ventures and as a result will generally provide just enough funding to allow other financing institutions to join in the investment. VI Cap requires a minimum 10% investment from the project sponsor for all its investments. The Fund would like to increase its co-investments in the future.