Better World Books, a Mishawaka, Ind.-based online bookseller that uses some of its profits to help fund global literacy initiatives, has raised $4.5 million in Series A funding. Good Capital LLC led the round with a $2.5 million investment, while angels provided the remainder.
Good Capital, LLC (www.goodcap.net), the San Francisco-based investment manager of the Social Enterprise Expansion Fund and Better World Books (www.betterworld.com), an independent online bookseller that capitalizes on the value of books to fund and support literacy initiatives worldwide, today announced an agreement that will provide Better World Books with up to $2.5 million in growth capital from the Social Enterprise Expansion Fund. Good Capital led the Series A Preferred round and became Better World Books' first institutional investor, while 18 private individuals will provide an additional $2 million in equity capital.
“Better World Books is a great fit for Good Capital's Social Enterprise Expansion Fund,” said Kevin Jones, Principal and Co-founder of Good Capital, who will take a board seat as part of the relationship. “It's a rapidly growing, expansion-stage social enterprise that is leveraging a market-based approach, by buying and selling new and used books to improve global literacy. They are passionate and smart, and we look forward to helping them achieve their financial goals and execute on their social mission.”
Good Capital accelerates the flow of capital to innovative social ventures to create sustainable solutions to global challenges. Its Social Enterprise Expansion Fund is a private equity fund that provides growth capital to businesses that deploy market-based solutions focused on poverty alleviation, healthcare, and education. The fund provides limited partners with the opportunity to leverage their investment capital to create scalable social impact while also receiving attractive financial returns.
“This investment from Good Capital and other private investors will have a huge impact on our ability to promote and support literacy on a much bigger scale around the world,” said Better World Books CEO David Murphy. “Better World Books was founded on a simple belief that businesses can do good and do well at the same time. We are thrilled that Good Capital and our other partners have embraced Better World Books' unique model with growth capital that protects our core values while providing the acceleration to help us expand our business.”
Better World Books is a fast-growing social enterprise that collects donated books and sells them online to fund literacy initiatives worldwide. In the process, the company creates social, economic and environmental value for its stakeholders. Better World Books generated more than $16 million in revenue in 2007, and has more than two million new and used titles in stock. It acquires its used inventory through partnerships with more than 1,600 college campuses and 900 libraries nationwide. A winner of the 2008 Fast Company Social Capitalist Award, Better World Books has raised $4.5 million for its non-profit literacy, library and college partners worldwide.
Both Better World Books and Good Capital are founding B Corporations (www.bcorporation.net), a growing international network of purpose-driven businesses dedicated to setting a new standard for social and environmental performance, creating benefit for all stakeholders, not just shareholders.
About Good Capital
Good Capital is an investment firm that accelerates the flow of capital to innovative ventures and initiatives that harness the power of the market to create sustainable solutions to some of society's most challenging problems. The company's initiatives address a wide range of social issues including social enterprise financing, community and economic development, and healthcare financing. The company actively engages social entrepreneurs and the investment community to build the social capital market and create a better society in the process. Launched by a team with a mix of social investment, entrepreneurial, and philanthropic experience, Good Capital enjoys the strategic support of Calvert Social Investment Foundation (www.calvertfoundation.org) and Criterion Ventures (www.criterionventures.com). For additional information visit the firm's website: www.goodcap.net.
About Better World Books
Better World Books (www.BetterWorld.com) is a for-profit social enterprise that collects and sells books online to fund literacy initiatives worldwide. With more than two million new and used titles in stock, Better World Books is a self-sustaining, triple-bottom-line company that balances the social, economic and environmental values of its stakeholders. Since its founding in 2003, the Mishawaka, Ind.-based company has raised $4.5 million for its non-profit literacy, library and college partners; diverted more than 6,500 tons of books from landfills; achieved 2,400 tons of carbon offsets through carbon-neutral shipping, and created more than 160 full-time jobs with meaningful benefits.