Ask any startup founder and that person will tell you funding an early-stage business is a key obstacle on the pathway to success.
Typically, the initial capital for a new business comes from the founder. After that, it is common for the founder to seek capital from friends and family supportive of the new venture. After those lines to capital have been exhausted, the founder often seeks outside support.
According to the National Venture Capital Association, less than 1% of all startups receive venture capital funding. Most emerging businesses will need to seek funding elsewhere. CDFIs might be the right solution for some of those businesses.