Fibers Fund Welcomes New Investment from SK2 Fund
Catalytic financing accelerates Fund’s focus on overlooked fiber sector entrepreneurs
The Fibers Fund, a catalytic fund to support U.S. natural fiber farmers and entrepreneurs, is delighted to announce a new investment from Idaho-based SK2 Fund. SK2 Fund’s support will accelerate the Fibers Fund’s growing momentum, enabling it to deploy additional low-interest debt and other flexible capital to underserved fiber entrepreneurs working in crops like hemp, wool, flax and cotton. The investment reflects SK2 Fund’s effort to align its endowment with the values and economic systems it seeks to advance through its broader mission.
Fibers Fund has recently backed enterprises including Renaissance Fiber, a fiber hemp processor supporting a farmer co-op and rural job creation in North Carolina, and Cindy Castro New York, a Latina immigrant-led business providing quality jobs in NYC's garment district. The Fund is currently finalizing loans to several additional businesses, including additional agricultural cooperatives, to expand its portfolio.
Shared approaches to Integrated Capital
Both SK2 Fund and Fibers Fund share a commitment to integrated capital, the coordinated use of varied forms of funding in service of mission. SK2 Fund’s note will let the Fibers Fund meet fiber businesses who have experienced the greatest disinvestment with tailored financing in the form of low-interest term loans paired with business TA grants, building their capacity to obtain fair contracts, unlock additional investment, and create sustainable livelihoods. SK2 Fund joins Fibers Fund investors Cienega Capital and Nathan Cummings Foundation and philanthropic funders including 11th Hour Project and Globetrotter Foundation, all of which also utilize a whole-of-assets approach.
Flax plants, the source of linen fabric. Photo by Paige Green Photography.
Unlocking Regenerative Economic Models
According to Jessica McAleese, Sustainable Agriculture Officer at SK2 Fund, “This investment is an opportunity to directly resource fiber entrepreneurs with the capital and support they need to grow their businesses while strengthening the foundation of a more regenerative U.S. fiber industry. Let’s face it… most of us already know what becomes possible when people, businesses, and ideas have access to the resources they need to thrive. At SK2 Fund, it is important to us to know where our endowment rests and to ensure that our investments actually support the economic systems we want to see flourish. Investing in Fibers Fund was an easy opportunity to align our endowment with our values and our mission and at the same time, help build a more equitable domestic fiber economy.”
McAleese continued, “Why invest in this? Capital has flowed in the same direction for far too long. As funders, we have the chance to change that current—to share risks AND returns, build mutual benefit, shift power, and redirect this flow towards the people and organizations building the durable, diversified and vibrant systems we want to see. Partners like Fibers Fund don't just make that possible; they make it remarkably easy. The better question is: why wouldn't we invest in this?"
“The Fibers Fund is delighted to work in partnership with SK2 Fund,” added Sarah Kelley, Managing Director of Fibers Fund. “From our daily work with fiber entrepreneurs across the country, we know that access to patient and flexible capital unlocks so many opportunities for these businesses to build community wealth, advance regenerative agriculture, and create a more resilient U.S. fiber and textile supply network. The dedicated, creative SK2 Fund team has already been a wonderful partner to work with and we look forward to putting their investment right to work for more inspiring entrepreneurs in this overlooked sector.”
About SK2 Fund
SK2 Fund is a private foundation coordinating its endowment investments, grants, programs, and advocacy in pursuit of a more sustainable and equitable world. SK2 Fund advances its mission by using creative, integrated capital to help socially and environmentally committed small businesses and related initiatives succeed. Learn more at sk2fund.org.
About The Fibers Fund
The Fibers Fund is a catalytic fund to support U.S. natural fiber and textile producers and processors, with a specific focus on economic justice. Fiber crops are an integral but overlooked part of regenerative agricultural systems, and the textile industry offers key opportunities to back entrepreneurs rebuilding U.S. manufacturing with a focus on community ownership and wealth-building. Yet this sector has received little attention from investors. Launched in 2023 to fill these capital gaps, the Fibers Fund offers flexible debt and TA grants to U.S. natural fiber producers and processors, combined with wraparound support. With its innovative governance structure and approach, the Fund was selected as a 2023 Transformative 25 fund and is listed on the ImpactAlpha Edge platform. Learn more about the Fund’s work, team, and portfolio at fibersfund.com.
Opportunities for Leverage
The Fibers Fund welcomes inquiries from philanthropies, donor-advised funds, family offices, and accredited investors interested in leveraging SK2 Fund’s support and catalyzing further impact for fiber entrepreneurs across urban and rural areas. Learn more about opportunities to invest or donate at fibersfund.com and contact us at [email protected].
Contact Us
Fibers Fund: Sarah Kelley, Managing Director, [email protected]
SK2 Fund: Jessica McAleese, Sustainable Agriculture Officer, [email protected]