Three Roots Capital Explores Regional Solutions for Affordable, Accessible, and Quality Childcare

May 19, 2025

Anderson Olds, Portfolio and Reporting Analyst for Three Roots Capital and Emma Wyatt, COO of The Innovate Fund

Finding affordable, accessible, and high-quality early childcare is an increasing challenge for communities across East Tennessee. Recognizing the impact of this issue on families and the workforce, Three Roots Capital has taken a leadership role in convening stakeholders and exploring practical, capital-focused solutions.

In Q1, Three Roots Capital partnered with the Knoxville Area Urban League (KAUL) to co-host a roundtable discussion with regional leaders to examine the current childcare landscape. The event focused on strategies to reduce costs, expand support services, and scale childcare infrastructure to meet rising demand. Organizations in attendance included the YMCA of East Tennessee, Knoxville Chamber of Commerce, United Way of Greater Knoxville, Knox Education Foundation, Tennesseans for Quality Early Education, and others.

The discussion centered on three key pillars: affordability, accessibility, and quality. Participants highlighted that while quality care is essential, it often comes at a cost that makes it inaccessible for many families. “It’s a workforce problem today and will be tomorrow,” noted one of the attendees. Grady Vanderhoofven, President and CEO of Three Roots Capital, emphasized the importance of sustained collaboration, adding, “We might be able to participate in addressing these issues by identifying capital we can deploy as part of the solution.”

To build on these insights, Anderson Olds, Portfolio and Reporting Analyst at Three Roots Capital, attended a regional trip on March 4 led by the Knoxville Chamber of Commerce to explore successful childcare models in Clarksville, Murfreesboro, and Nashville. The trip included representatives from ten community, corporate, and civic organizations, including Knox County Government, Covenant Health, and the YMCA. The group visited early childcare centers like the Youth Academy, which serves up to 800 children in an industrial park setting, and Concrete Christian Academy, established by SRM Concrete to support its workforce.

The trip concluded in Nashville with a policy-focused discussion featuring Tennessee Speaker of the House Cameron Sexton and Tennessee Department of Human Services Assistant Commissioner Collin Baggett. The state leaders discussed initiatives to streamline childcare center certification and expand access to high-quality early childcare statewide.

This momentum continued into Q2, as Three Roots Capital convened a second roundtable to deepen the conversation and introduce a national perspective. The event featured Emma Wyatt, COO of The Innovate Fund, who shared insights on how New Markets Tax Credits supported the EO Regional Workforce and Child Development Hub, a project bridging childcare and workforce development in Southwest Virginia.

Three Roots Capital’s approach aligns community needs with capital deployment. By leveraging impact investment and deep regional partnerships, Three Roots Capital aims to help close the childcare gap and support families and the local workforce.

“We know this is a complicated issue, but we’re committed to supporting solutions that make a meaningful difference,” said Vanderhoofven. “This is exactly the kind of challenge where capital, collaboration, and community can come together to generate long-term impact.”

As this initiative continues to grow, more meetings are planned. For more information about upcoming meetings or to get involved, please contact Anderson Olds at anderson@3rootscapital.org.

Employee Spotlight: Keith Hickey

May 19, 2025

Keith Hickey joined Three Roots Capital in 2024 as Senior Vice President and Chief Lending Officer, bringing over 30 years of banking experience and a clear philosophy: lending is not about transactions but about building lasting relationships. His career spans rural towns and metropolitan cities and has been built on helping first-time entrepreneurs and seasoned operators access the right capital at the right time. “This role allows me to do what I love: help small businesses across Tennessee and neighboring states secure the capital and guidance they need to grow,” he said.

Keith’s decision to join Three Roots Capital was rooted in deep respect for the organization’s mission and leadership. Knowing the team’s integrity and vision made the choice natural. Grady Vanderhoofven, President and CEO of Three Roots Capital, shared, “I had known of Keith in our region for many years, and I always had a cordial relationship with him. I was immediately enthusiastic when I became aware that Keith was interested in joining our team. In my eyes, he is the prototype of the Chief Lending Officer in community development finance. Most importantly, he truly has a heart for helping people and small businesses. He is incredibly capable and accomplished, yet simultaneously humble and genuine. His experience and network of relationships position him to add tremendous value to our enterprise, and he hit the ground running, closing his first multi-million-dollar loan within 60 days of joining our team and 10 loans within his first six months. He is a friend and a colleague, and he was somewhat of a missing piece within our organization.”

Born and raised in Jefferson County, Tennessee, Keith has a particular passion for rural economic development and the unique challenges that small businesses in these areas face. He understands that traditional banking models often leave gaps. These are gaps he is determined to close. “Rural communities are generous to a fault. They’ll give the shirt off their back to help someone else, but they often won’t ask for help themselves. That’s why it’s so important for us to show up consistently and offer support.”

Keith’s lending philosophy is based on empathy and experience, with a defining moment early in his career that shaped his approach. Early on, he encountered a farmer in overalls who didn’t initially fit the typical borrower profile. Later, Keith learned that the farmer had over $2 million in bank deposits. This experience reinforced the importance of never judging based on appearances and always leading with professionalism and compassion.

Whether it’s a $50,000 microloan or a $20 million investment, Keith works to meet business owners where they are. He breaks down barriers, builds confidence, and connects them to the right resources. “We’re not just lenders at Three Roots,” he said. “We’re also partners. Many times, traditional banks have already turned down our borrowers. As a Community Development Financial Institution, we’re here to fill those gaps and walk alongside those borrowers.”

Keith’s leadership doesn’t stop at lending. He is an active and enthusiastic mentor, deeply invested in guiding the next generation of business leaders. He lends his expertise to organizations, including Knoxville Urban League, 100 Knox, the Tennessee Small Business Development Center, and the Knoxville Entrepreneur Center – most recently leading the Inflection Point Capital Program. He also teaches at the University of Pennsylvania’s Stonier Graduate School of Banking and in The Wharton School’s leadership program each summer. “Mentorship is one of the most rewarding parts of my work,” he said. “Helping others understand how to navigate access to capital, scale their operations, and make smart, ethical decisions is something I truly believe in.”

Keith serves on the Appalachian Women’s Business Center and Security Bank and Trust boards. As an active member of the Tennessee Bankers Association, he contributes to the Governmental Relations, Annual Credit, and Senior Lenders Forum Committees. Additionally, he represents Three Roots in regional and statewide initiatives focused on entrepreneurship, rural development, and disaster recovery.

Outside the office, Keith brings that same energy and commitment to everything he does, whether golfing, salsa dancing, or leading fitness classes. His competitive mindset, work ethic, and genuine passion for people have made him a trusted advisor, a respected leader, and an enthusiastic community advocate. His advice to entrepreneurs remains consistent and heartfelt, whether they’re just starting out or scaling rapidly: “Stay focused, know your numbers, and always keep a long-term perspective. The hard work you put in today will pay off tomorrow.”

Three Roots Capital Invests in Blank Beauty to Support Scalable Growth and Economic Impact in East Tennessee

May 08, 2025

Innovative beauty-tech company raises $6 million Series A to expand operations in Knoxville.

KNOXVILLE, Tenn. – May 8, 2025 — Three Roots Capital (3Roots), an innovative finance company focused on providing impact capital and business coaching for job-creating small businesses, has invested in Blank Beauty, a rapidly growing beauty-tech company that is blending science, software, and robotics to revolutionize personalized cosmetics.

Blank Beauty recently closed a $6 million Series A funding round and is establishing its headquarters and production facility in downtown Knoxville. Although the company did not originate in Knoxville, its leadership has chosen to expand and grow in East Tennessee, drawn by the region’s entrepreneurial spirit, available talent, and supportive innovation ecosystem.

Blank Beauty’s technology platform enables customers to receive precision-matched formulations for beauty products like nail polish. The company plans to expand into additional categories. Its blend of hardware and software solutions is designed to transform how consumers experience and purchase cosmetics.

“Three Roots Capital is enthusiastic about supporting Blank Beauty’s growth and expansion. We have been impressed by Charles and his leadership team, by the technology and product pipeline, by the supporting cast, and by the company’s ability to attract capital from significant strategic investors. We see several ways 3Roots can support the company, including various kinds of direct capital investment, intending to deliver strong financial results and drive economic impact in Knoxville,” said Grady Vanderhoofven, Founder and CEO of Three Roots Capital. “We encouraged the company to explore space in a low-income area in East Tennessee, aligning with our goal to foster economic development. Blank Beauty is the type of high-growth-potential, tech-driven company we want to see thrive in the region.”

Blank Beauty’s Series A round included investment from three other strategic partners: EPSON, a leader in advanced digital printing and imaging technology, and Kirker Enterprises, Inc. (Kirker), a global leader in custom manufacturing and industrial solutions, and Evolution Venture Capital Partners (Evolution VCP), a nationally active investment fund. Each investor brings valuable expertise and resources to support Blank Beauty’s continued growth, including potential applications for their technologies and networks within the cosmetics industry.

The company’s new headquarters is located in a federally designated low-income census tract, which means the company is positioned to generate meaningful economic impact and create jobs as it expands production. Blank Beauty is working with regional partners, including Alcoa-based APTUS DesignWorks, which supports the company’s product development and manufacturing efforts.

“Having local investors in the Knoxville area brings much more than capital to the table. Three Roots Capital’s investment helps Blank Beauty plug into the ecosystem and gain access to an incredible network of local resources and opportunities,” said Charles Brandon, Co-Founder and CEO of Blank Beauty. “We are also thrilled that Three Roots can watch our business grow in their backyard– an investor update can be an impromptu, in-person workshop instead of another Zoom Call.”

Three Roots Capital’s investment is part of a broader strategy to provide flexible capital tailored to early-stage companies with strong leadership, scalable business models, and a commitment to growing in Tennessee and central Appalachia. Blank Beauty stood out for its traction with strategic investors, technical and consumer expertise, and its choice to anchor operations in Knoxville.

Since its founding in 2016, Three Roots Capital has deployed more than $190 million in direct financing and $95 million of New Markets Tax Credits to dozens of entrepreneurs, businesses, and real estate projects across the region. Three Roots is committed to supporting and collaborating with the communities it serves.

About Three Roots Capital

Three Roots Capital is an innovative finance company that provides loans and equity investments to small businesses and real estate projects in Tennessee and Appalachia. 3Roots was established to address the chronic need for investment capital in central and southern Appalachia. 3Roots supports small businesses, entrepreneurs, real estate projects, and communities in economically challenged areas throughout the region. 3Roots is certified by the U.S. Department of the Treasury as a Community Development Financial Institution (CDFI) and Community Development Entity (CDE). For more information, visit www.3rootscapital.org.

About Blank Beauty

Blank Beauty Inc. is a beauty tech startup that is centered around automated production of custom cosmetic products. Blank’s online platform empowers customers to create custom shades of nail polish in minutes that will be delivered to their doorstep. Founded in 2016, Blank Beauty is set out to harness AI-driven color science and automated robotics to deliver on-demand, personalized color cosmetics both in-store and online. Visit BlankBeauty.com to learn more.

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