Views

Three Lessons from Investing in Community Broadband

Three Lessons from Investing in Community Broadband

At Connect Humanity, our mission is to close the digital divide by supporting communities in their broadband journey—from getting to a shovel-ready state and capitalizing their projects to ensuring that the projects actually provide the expected internet service. After three years as an impact investor in community-centric broadband in underserved communities, we’ve learned a ton about structuring deals in a way that serves the interests of residents and businesses over the long term.

Speaking recently on a panel about equitable digital infrastructure investments hosted by the Urban Institute, I was asked to offer three lessons that guide Connect Humanity’s investment approach. Here’s what I shared:

1. Translation for communities is essential.

Broadband and financing often involve complex jargon—terms that make it difficult for communities to fully understand their options and make informed decisions. Whether it’s explaining technology choices like GPON or XGS-PON, or demystifying financial terms, our role is about translating and code-switching between the technical and the practical. We help communities cut through the noise so that they can focus on what truly matters: getting connected.

2. Rethinking the word ‘risk.’

When evaluating investments, the word “risk” often gets used broadly. Is a project considered risky because it’s in a low-income or rural area? Why do historically marginalized communities too often bear the burden of increased perceived risk? We need to be really clear about what risk we’re talking about. Broadband demand continues to grow—by 35% annually—making it a stable, predictable asset. So when we hear “risky,” we unpack what that really means, often discovering that the potential for sustainable cash flows makes these projects far more financeable than they may appear on the surface.

3. Communities need a seat at the table.

Broadband deals are often made through bilateral conversations between investors and ISPs, leaving communities out of the equation. By intentionally creating a seat at the table for communities, we can ensure their voices are heard and their needs are met. This approach ensures that the value created by these networks is not just extracted by private interests, but shared with the communities they serve. We do this through what we call “digital equity covenants”. The good news for investors? This leads to more community participation (aka subscribers) and better long-term business outcomes.

These are some of the many lessons that we’ve baked into our investment practices and remain central to our mission, helping us build not just infrastructure, but lasting partnerships that serve communities’ digital needs.

Interested in learning about opportunities for investment partnerships? Reach me at brian@connecthumanity.fund or complete this form.

See Brian’s remarks or watch the full session from the Urban Institute.

Keep in touch

To learn more about our work follow us on social media, subscribe to our newsletter, and write to us anytime at info@connecthumanity.fund.

Discover more from Connect Humanity

Subscribe now to keep reading and get access to the full archive.

Continue reading