Capital Investors

Capital is necessary to fuel district growth and expansion. Financing in many forms and from a variety of sources is needed to support basic science and applied research; the commercialization of innovation; entrepreneurial start-ups and expansion (including business incubators and accelerators); urban residential, industrial, and commercial real estate (including new collaborative spaces); place-based infrastructure (e.g., energy, utilities, broadband, and transportation); education and training facilities; and intermediaries to steward the innovation ecosystem. Resources are also needed to support programmatic activity within districts which activate the physical spaces.

The funding of these types of assets and uses can occur over several decades and is generally financed by a range of investors. Some of the most common investors found in districts include:

• Local institutional capital, such as universities and medical institutions
• Capital players focused on land acquisition and vertical construction, such as REITs and pension funds
• Governments, which include critical funding for basic infrastructure, research, and development activities
• Venture Capital
• Companies
• Philanthropy
• Community development organizations

Innovation districts must make a compelling case for investment and even create special investment vehicles tailored to disparate kinds of activities.