3c hapter - Index of

216 Locavesting
are looking to create their own local exchanges. In Hawaii, for
example, where 85 percent of energy and food is imported, the
hope is that a local exchange could help fi nance new ventures in
these and other areas and help diversify the economy, says David
Fisher, a consultant and former director of the Hawaii Small
Business Development Center and one of the leaders of the initiative.
There is plenty of capital in Hawaii, he says, but most of it is
invested on the mainland. In March, the state senate approved a
resolution convening a working group to investigate the creation
of a Hawaii exchange.
In Toronto, the focus is on regional enterprises that make a
positive social or environmental impact, but are often held back by
a lack of capital. The Social Venture Exchange (SVX), as the market
is called, has attracted a broad coalition of government, corporate,
nonprofi t, and local business supporters, and is expected to
be up and running in June. Initially, the offerings will be available
to accredited investors only, but the goal is to broaden the system to
include retail investors within the next few years.
The groups have discussed collaborating, perhaps creating
a nonprofi t coalition of local exchanges that share a technology
platform. “The movement needs one working model to show the
way,” says Proffi tt. “We haven’t started a new local stock exchange
of this type in 80 years. We don’t know how to do it anymore, and
I’m talking about rediscovering that capability.” 19
DPO + Local Exchange = Game Changer
A lot of others are, too. In England, the local exchange concept
has been talked up by politicians from local leaders all the way up
to Deputy Prime Minister Nick Clegg. It is also being embraced in
Wales, where just 20 Welsh companies are listed on the London
Stock Exchange. 20 In the U.S., Slow Money is planning a series of
regional exchanges to help food-related businesses raise capital.
The idea behind all of the initiatives is to carve out a safe place
where people can put their investment dollars to work in real
companies engaged in productive businesses that benefi t their
com munities. In doing so, they aim to reestablish a connection