The next big thing in finance is a lot of little things.

What is a BFF?

BFFs are a new type of financial institution designed to serve the bioregional movement.

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BFFs can drive the decentralization of financial resource governance, aggregation of synergistic portfolios of projects, and the transition to a regenerative economy – becoming the connective tissue between financial resources and on-the-ground regenerators. They can do this by enabling capital raised from a variety of sources to flow to aggregated portfolios of systemically coordinated regenerative projects in rigorously designed, community-determined ways that support emerging bioregional economies applying fundamentally different economic logic and value systems. Rooted in the uniqueness of place and guided by Indigenous wisdom that invites us into kinship with nature, BFFs can enable the flow of capital to serve life.

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Bioregional Financing Facilities: connecting financial resources and regenerators

There is a lack of connective tissue (trunk and branches) between those that hold and manage the large (and increasingly concentrated) pool of financial resources (leaves of the tree) and the coalitions of actors on the ground (regenerators) carrying out these critical regenerative activities (roots and mycelial network). BFFs can serve this function.

Objectives:

Drive the decentralization of financial resource governance

Organize synergistic portfolios of projects

Catalyze the transition to a regenerative economy

Attributes of BFFs

  1. Aim to align with living systems principles and Indigenous wisdom
  2. Serve the realization of the Bioregional Regeneration Strategy 
  3. Implement an inclusive and participatory governance structure that represents the bioregion
  4. Work to shift power imbalances 
  5. Be transparent and enable empowered participation
  6. Leverage an integrated capital structure that embeds regenerative principles
  7. Treat growth and returns as a means, not an end
  8. Raise from mission aligned funders/investors
  9. Provide aggregation and matchmaking 
  10. Apply an integrated approach to sensing and MRV
  11. Invest in storytelling
  12. Engage in partnerships, place-based citizen-stewardship, and the community of practice

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Phase 1

1. Bioregional Trust

A trust that acts as a catalytic grant fund – providing grants to a range of priority organizations and initiatives in order to create a strong foundation for bioregional action. It can also set up and manage bioregional eco-credit programs, Common Asset Trusts, and Ecological Institutions.

Capital Raising

  • Philanthropic and public grant capital (could be sub-national, national, or multilateral), as well as individual donations (including through crowdfunding)
  • Bioregional Tithing program

Capital Allocation

  • Provides grants to fund key processes laid out in steps 2-5 of the Multi-stakeholder Bioregional Regeneration (Table 4)
  • Provides grants to priority projects or organizations aligned with the Bioregional Regeneration Strategy
  • Provides grants to Bioregional Hubs and Bioregional Organizing Teams
  • Funds the development of a bioregional MRV platform (to be developed together with a Bioregional Hub)
  • Sets up the Bioregional Venture Studio, Bioregional Investment Company and Bioregional Bank

2. Bioregional Venture Studio

A non-profit, public benefit corporation, co-operative, steward-owned entity, or DAO that supports the development of a cohort of synergistic regenerative organizations to drive systems change. These organizations provide dealflow for the Investment Company.

Capital Raising

  • Philanthropic grants
  • Public sector grants (could be sub-national, national, or multilateral)
  • Supply chain finance
  • Concessional capital

Capital Allocation

  • Invests in and incubates cohorts of early-stage organizations that work together to change a specific system and generate cascading benefits

Phase 2

3. Bioregional Investment Company

A public benefit corporation, co-operative, steward-owned entity, or DAO that develops a portfolio of Systemic Investment Funds and Bioregional Regeneration Bonds. It leverages an integrated capital approach, aggregates portfolios of high impact projects or businesses.

Capital Raising

  • Market-rate investment capital
  • Concessional capital
  • Philanthropic grants
  • Public sector grants (could be sub-national, national, or multilateral)
  • Supply chain finance

Capital Allocation

  • Systemic Investment Funds
  • Invests in diversified portfolios of projects & businesses designed to create systemic impact
  • Bioregional Regeneration Bonds
  • Same objectives as the funds, but through a fixed income security

4. Bioregional Bank

A bank that provides low-interest loans, microloans, lines of credit, and technical assistance to aligned organizations. It can also provide retail banking services to individuals and can develop and issue a complementary or nature-based currency.

Capital Raising

  • Concessional capital
  • Public sector grants (could be sub-national, national, or multilateral)
  • Philanthropic grants
  • Guarantees
  • Deposits

Capital Allocation

  • Develops and issues complementary or nature-based currency