Rhiza Capital

otany nerds might get the meaning behind Rhiza Capital's name. Pronounced RISEAH, it's a play on “rhizome,” the part of a plant's root structure that spreads through the soil and creates new sprouts. That makes sense for an organization built on providing capital to B.c.-based ventures that have a substantive social or environmental impact.

Rhiza, established in Sechelt in 2015 by non-profit Community Futures Sunshine Coast, Powell River Community Investment Corp. and Sunshine Coast Credit Union, has allocated more than $3 million to 20 B.c.-based organizations. They include fellow Sechelt outfit Salish Soils, which specializes in organic waste disposal, as well as Terramera, the Vancouver-based agriculture cleantech company.

It's a big job for three fulltime employees (founders

Brian Smith and Sean Melrose, as well as director of investor relations Elyse Crowston) and two support staff, as the Rhiza team thoroughly vets prospective ventures before making an investment. “Sean will essentially become the

CFO of a company and dive into the financial projections,” Crowston says of Rhiza's chief investment officer.

“He'll do the deep dive into the mechanics, the governance, the leadership team and their financial and social alignments, and once he feels confident that it's something to bring to the wider team, the three of us will adjudicate the company before Sean presents it to our investment committee.”

Perhaps being small gives the firm a unique perspective on its industry. “At most, if not all, impact venture funds in Canada, you have to be an accredited investor to invest, and usually the minimum is around $100,000 to $500,000,” Crowston explains. “To be an investor in Rhiza's venture fund, you don't have to be accredited; the minimum is $5,000, and you can do it digitally.”

With plans to raise and invest $25 million in the next couple of years, Rhiza should have no problems staying grounded.