Five Years of Community Innovation with the Citi Impact Fund

If necessity is the mother of invention, then our communities are due for some innovative solutions. In the U.S., that need is clear when we look across the country: only 30% of Americans today are financially healthy and pressing issues like access to quality housing and healthcare, un- or under-employment and financial insecurity persist for too many.

At Citi, we have a track record of investing in communities and unlocking economic opportunity. From financing over 34,000 units of affordable housing across the U.S. in 2024, to colleagues volunteering nearly 320,000 hours to local causes last year alone, to the Citi Foundation’s grant investments in visionary nonprofits, we leverage the full capabilities of our firm to accelerate solutions that change lives.

But as the challenges facing our communities evolve, so does Citi’s approach. Five years ago, we recognized the need for a different kind of tool to tackle these community challenges and the Citi Impact Fund was born. Complementing our philanthropy and other community investing efforts, we put Citi’s own balance sheet to work by investing in “double-bottom line” companies. At the time, the Citi Impact Fund was the largest fund of its kind by a bank investing its own capital. Since then, we have built a team of impact investing experts, established ourselves as an industry leader and grown into a $500 million fund. Equity investments, which generate revenue and positive impact, are now another key way that we apply our business capabilities to support communities. 

We have learned a lot over the past five years, including:

• Community innovation can scale. We are focused on finding and funding high-potential ideas that can yield long-lasting impact. To date, we have invested in 53 companies and funds and allocated over $190 million in capital. Across the portfolio we are motivated by examples of scalable innovation such as home energy management company Renew Home that, through a successful merger, empowers millions of households to save and support a cleaner grid by shifting their energy use with smart devices. 

   

• Start-ups need support beyond the dollars. Just writing a check is not enough. Our portfolio companies mirror the attributes of many Citi clients – entrepreneurial, with a drive to succeed – and we look to support them with the full breadth of our firm’s capabilities and expertise. Whether featuring Wonderschool’s offering to connect childcare providers and families in a national advertising campaign with over 110 million views or becoming a customer of Rheaply’s inventory management software to divert nearly 62 metric tons of material from landfills, Citi’s value beyond our capital can be a differentiator for their long-term success.

   

• Data tells the impact story. As we showcased in our recent Impact Report, our portfolio companies’ products and services delivered workforce training and benefits solutions to over two million people and helped over 400,000 others gain access to financial services in 2023. We aim to better understand the impact of our portfolio on underserved communities, like how in 2023 PadSplit’s marketplace for room rentals connected over 9,600 people to affordable co-living solutions. By engaging with our portfolio companies on their priorities and available data, incredible stories of community impact unfold.

At this five-year milestone, we’re not only reflecting on our progress, but also looking ahead to understand how today’s trends can help close opportunity gaps. Artificial intelligence can increase access to better and more customized services that improve users’ financial lives and reach a wider range of communities. Developments in the care economy can ensure all families, regardless of income or zip code, live their fullest lives and age with dignity and comfort. Underserved communities stand to benefit from the strides made in each of these areas and more. With innovation and impact as our guide, the Citi Impact Fund is committed to continuing to propel new solutions forward. Onwards.