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Conclusion 223
come into play. Would the cost of vetting these tiny companies
and maintaining a fund swamp its likely profi ts? Or, like the venture
capital model, would one or two homerun companies carry
the day? These questions have yet to be answered.
In the meantime, there are some interesting twists on the
fund theme. Leslie Christian’s Upstream 21 is one. It is an investment
vehicle for accredited investors that acquires small, successful,
sustainably run companies in the Pacifi c Northwest—so far,
its portfolio of three companies refl ects the region’s forestry tradition.
Upstream acts as a holding company, operating the companies
as wholly owned subsidiaries and helping them improve their
businesses. It’s sort of a Berkshire Hathaway for local investing.
Christian, a Wall Street veteran and Upstream’s Warren Buffett,
started the fund in 2004 after watching so many socially responsible
pioneers get swallowed up by multinationals (hello, Ben &
Jerry). Often, when a business owner needs to sell, that is the only
option. But a multinational may move jobs out of the region and
discontinue the values- based practices of the founders. Upstream
provides an alternative, one that keeps jobs in the region and principles
intact. In fact, Upstream 21’s charter specifi cally mandates
that it consider the best interests of employees, the environment,
and suppliers along with those of shareholders—an idea that was
expanded upon by B Labs with B Corporations, a new business
structure being adopted by states that embeds triple bottom line
accountability in its charter.
There are other conceptually similar funds, like Farmland LP,
which acquires conventional farmland and converts it to more profitable
and sustainable organic operations in Oregon’s Willamette
Valley. Like Upstream, it is open to accredited and institutional
investors only.
As with all locavesting models, the real impact comes when all
types of individuals can participate, not just high- net- worth investors.
(If Upstream 21 were to go public, for example, ordinary investors
could buy shares).
Christian believes there is strong momentum behind the local
investing movement. Small businesses have always struggled to
raise capital. The difference today, she says, is the demand from