BizSugar.com › Raising Capital › Venture Financing With a Mission Beyond Profit

CITIES have long offered tax incentives to encourage companies to stay and newcomers to relocate. But another option is gaining currency in old manufacturing cities looking to prop up their struggling economies — homegrown nonprofit groups that nurture new businesses from the ground up.

Skip to next paragraph One of the more innovative of these groups is the five-year-old Jumpstart Inc., which provides seed money to entrepreneurs with promising businesses in the Cleveland area. Like a venture capital firm, Jumpstart identifies companies to invest in and advises them on their next steps.

But unlike a venture firm, Jumpstart relies on charitable donations, many of them from the private sector, for its financing and does not return a share of profits to those who provide the investment dollars. The return comes as satisfaction for elevating a region's economic standing.