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Working with investors to develop proactive talent strategies

Posted By Rebecca Harrison, African Management Initiative, Thursday, March 21, 2019

Working with investors to develop proactive talent strategies 

Human capital is a key challenge for many SGBs. Getting and keeping the right team in place is critical to propel ventures to scale – yet founding teams often struggle to find the right fit. Many investors in African companies have tolAMI they want to focus more post-investment support on developing talent within their investee companies. But they often aren’t sure how to develop a talent strategy that cuts across their investment portfolio.

AMI hosted a roundtable discussion in Nairobi last month for around 30 early and growth stage investors into East Africa interested in adopting more proactive talent strategies for their portfolio companies. We shared 3 models we’ve seen used to provide post-investment human capital support, and hosted a candid discussion around what is and isn’t working.

AMI identified the following three broad buckets for ways to engage around talent at a portfolio company level. We heard from various investors, who shared how they are using different approaches to help their investee companies build out the teams they need to scale.

Three models:

Facilitative model   This could also be described as the ‘matchmaking’ model. The facilitative model is used when investors help companies understand their talent needs, identify and introduce them to quality providers, and then show them how to engage. The investor’s role here is primarily diagnostic and facilitative, and aims to support needs that are specific to each founding teams/organisation. Some investors are using TA funds to finance these interventions.

Examples: For AHL Ventures, talent is one of the main post-investment challenges that companies across their portfolio face. They often work with their companies on creating a talent plan or helping them directly acquire talent. They also refer investee companies to talent providers, where appropriate, using experience on what has worked with other portfolio companies to inform recommendations. For example, AMI has worked with AHL to train employees in several of their investee companies, including MKOPAPowerGenEthioChicken and Equity for Tanzania.

A different approach within the facilitative model was shared by CDC Groupwhich is developing an online directory for investee companies providing information on different human capital services available, including services specific to talent development – training, recruiting etc. CDC aims to make this directory available more broadly with the goal of also building the broader ecosystem (see supply-side model below).

Direct model The direct model differs from the facilitative model, as it works to identify a very clear need across the investor’s portfolio, instead of working on a case-by-case basis. This model is focused on solving a specific challenge, for example developing middle managers, hiring CFOs or working on enterprise sales. The goal is to offer a structured programme or intervention that cuts across the entire portfolio. This approach is becoming increasingly popular as investors deepen their understanding around critical talent challenges, and is often funded by a blend of investor/TA subsidy and direct payment by the company.

Examples: Acumen identified a need across its portfolio to strengthen middle management skills and build leadership bench strength below the executive team. They first partnered with AMI 3 years ago to develop cross-portfolio programmes for both middle and senior managers and now run at least one programme annually. Interestingly, Acumen started by subsidising the programmes significantly, but has gradually phased this out. Companies now pay directly, and many have worked this into their annual planning and budgeting processes.

Shell Foundation took a similarly direct approach, offering AMI management programmes to companies across its portfolio on a cost share basis, after identifying management skills as a cross-cutting need. In this case, Shell Foundation allowed companies to engage AMI on their own terms, but provided the cost-share to make this possible. More than 100 have continued to work with AMI on a fully commercial basis, demonstrating that investors can often play a catalytic role in demonstrating the value of human capital services to companies.

Finally, Investisseurs & Partenaires (I&P) hosts a pan-African entrepreneurship club for its portfolio companies, where portfolio companies are invited to exchange ideas and debate on various issues including recruitment and retention. I&P also hosts seminars on specific topics of interest to entrepreneurs.

Supply-side support A small and growing group of investors are working to strengthen the ecosystem of human capital providers itself, either through grants and investments into supply-side players, or through experimentation with innovative sector-building models.

Examples: Shell Foundation is working with Argidius Foundation and Bluehaven to develop a Talent Facility to encourage and enable early-stage enterprises to invest in talent even when cash is constrained. Bluehaven, AHL and I&P have all invested directly into human capital providers such as AMI and Shortlist. And both Bluehaven and Argidius Foundation have provided grants to build the talent ecosystem more broadly.

Top learnings from investors:

Each of the 30 investors in attendance have several years of experience working in the impact investment sector in East Africa and globally, and shared openly about what they’ve learned around human capital. Here are a few high-level learnings

    • Investors can and should influence, and even incentivise, founding teams to focus on talent. Investors noted that founders themselves needed to be bought into human capital as a strategic priority. Investors can make their expectations clear in this regard, both before investment during diue diligence and after investment, at a board level.
    • Human capital is a core strategic priority not a ‘nice to have’ – is it on the agenda at board meetings? Many companies and investors agree that talent is important, but then spend their board meetings talking about fund-raising and sales targets. Investors who sit on boards can push talent issues up the agenda by asking the right questions around talent strategy.
    • Proactive talent strategy is more effective than reactive crisis management: Investors have seen talent challenges emerge when companies grow very quickly. Investors can encourage companies to get the right human capital systems and structures in place ahead of (or at least at the beginning) of a period of aggressive growth, and can share lessons learned from other portfolio companies.
    • Investors have seen key needs cut across portfolio companies. Some key themes emerged from the discussion – for the example the need to develop middle management, the shortage of strong CFO candidates and challenges with enterprise sales. However investors working at different stages of the investment cycle noted that different approaches are required for early-stage businesses versus more mature companies. Investors can benefit from sharing notes with others investing at a similar stage.
    • Due diligence should include a structured focus on management capacity & learning mindset. Many investors are being more intentional and structured about probing the management capacity of founding teams and their broader leadership. Some noted the importance of ensuring that entrepreneurs themselves have a learning mindset, and so are likely to build a learning culture across the organisation.
    • Start with simple interventions that work – A quick and easy way to start leveraging your experience as an investor to drive talent development is to introduce functional heads from within your own portfolio to each other. For example, introducing the head of marketing from two of your investee companies to each other is extremely beneficial for growth, learning and innovation.

We’d love to hear from any investors who have tried approaches not listed here. What’s worked for you? What are you still trying to figure out? Can we help?

AMI delivers a practical and scalable approach to workplace learning using a blended methodology that combines online courses with in-person workshops and practical hands-on application. AMI has rolled out 70 programmes across 13 African countries and directly trained over 26,000 people, including hundreds working at investor-backed growth companies. In 2019, AMI was named one of the Companies to Inspire Africa by the London Stock Exchange Group.

Tags:  Africa  capacity development  east africa  emerging markets  Human Capital  impact investing  impact investment  investors  smes  social enterprise  social impact  talent  Training & Events 

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Join the BiD Network Impact Investment Trip Rwanda & Uganda

Posted By Gert van Veldhuisen, BiD Network, Tuesday, January 22, 2019

Are you interested in investing in increasingly attractive destinations for foreign investments? For the fourth time, BiD Network organises an Impact Investment Trip to Rwanda & Uganda. From 10 - 16 March, BiD Network offers potential angel investors the opportunity to visit a number of well-prepared businesses from their portfolio.

The trip offers angel investors:

  • Unique opportunity to personally meet Rwandan & Ugandan entrepreneurs
  • Get insights in impact investing in Rwanda & Uganda
  • Potentially co-invest with a group of like-minded investors
  • Opportunity to create a positive impact together with financial return

Interested in joining this year’s trip? The cost of the trip is 2,500 EUR, including accommodation, flight Kigali - Entebbe, all other logistics and all meals, but excluding VAT and intercontinental flights. Space is limited, so secure your spot now by contacting BiD Network’s CEO Gert van Veldhuisen (gert.vanveldhuisen@bidnetwork.org). More information: https://www.bidnetwork.org/impact-investment-trip-rwanda-uganda/

Tags:  East Africa  event  impact investment  investors 

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Survey: Gender-lens Investing in LAC

Posted By Daniela Moctezuma, Value for Women, Tuesday, October 16, 2018

Are you an investor or organization supporting SGBs actively in Latin America and the Caribbean (LAC)? Please take 15 minutes to fill out the Value for Women survey on Gender-lens Investing in LAC, financed by the ANDE Catalyst Fund that seeks to provide investors, SGBs, and other ANDE members with a clear landscape of how impact investors use and see gender in their work. The survey will also serve as a way to identify best practices so please fill out and share your work with us!


Please fill out the Spanish language survey here before 11:59pm (Mexico City, Central Standard Time) on November 5th.


In case the link above does not work please click here: https://www.surveymonkey.com/r/V4WANDE

 
 If you have any questions, please write to Luis Márquez (lmarquez@v4w.org) with a copy to Daniela Moctezuma (dmoctezuma@v4w.org).

Thank you!

Tags:  ANDE Members  entrepreneurship ecosystems  impact investing  impact investment  Latin America  social entrepreneurship  social impact 

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SEAF Launches Gender Equality Scorecard ©

Posted By Robert Webster, Small Enterprise Assistance Funds (SEAF), Monday, August 27, 2018

SEAF Launches Gender Equality Scorecard ©

 

Washington, D.C. (August 27, 2018)

 

SEAF, the emerging market impact investing firm, has announced the launch of its proprietary Gender Equality Scorecard (“GES”), which will be a vital tool to support the promotion and achievement of women’s economic empowerment and gender equality in SEAF’s global investments.  The GES is initially being piloted in SEAF’s investments in Southeast Asia and it is expected to be used eventually across SEAF’s world-wide, impact investing platform.

                               

Jennifer Buckley, SEAF Senior Managing Director, stated, “SEAF’s Gender Equality Scorecard is launched with the conviction that those firms that realize internal gender equality in terms of compensation, leadership and other factors are superior financial performers and powerful drivers of women’s economic empowerment.  In this way, SEAF sees enormous potential in using the GES to create shared value for women, investors and entrepreneurs.”

 

SEAF’s Gender Equality Scorecard will assess potential and existing SEAF investees on gender equality, scoring across six key gender equality vectors:  pay equity, leadership and governance, workforce participation, benefits and professional development, workplace environment, and women-powered value chains.  These assessments will identify opportunities to improve gender equality and hence guide SEAF’s critical post-investment value creation work.

 

The Scorecard was born out of SEAF’s current gender lens investing initiative, the SEAF Women’s Opportunity Fund.  This Fund was launched in partnership with the Investing in Women (“IW”) initiative of the Australian government and focuses on women-led/owned businesses in Vietnam, the Philippines and Indonesia.  The Criterion Institute, the gender lens investing think tank and an IW partner, has played a critical role in GES’ development.

 

“SEAF’s Gender Equality Scorecard represents an exciting and innovative development to advance gender equality and women’s economic empowerment in the impact investing space,” explained Joy Anderson, President and Founder, Criterion Institute. “We are delighted to partner with SEAF and look forward to the GES’ continued development and influence.”

 

Bob Webster, SEAF Managing Director, said, “The Gender Equality Scorecard is the next key step in our gender lens investing journey and we look forward to working with our partners, including future stakeholders such as asset managers and academic institutions, in assessing its validity and improving it over time.  After its pilot use in the SEAF Women’s Opportunity Fund, its use will be expanded to SEAF’s next generation of gender lens investing initiatives, which are currently under development.”

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Tags:  creating shared value  emerging market  financial inclusion  gender equality  impact investing  impact investment  inclusive business  innovation  womenCreating Shared Value  women's economic empowerment 

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Need help on an impact investing question? Work with Duke MBA students this year

Posted By Carrie Gonnella, The Center for the Advancement of Social Entrepreneurship (CASE) at Duke, Thursday, July 19, 2018
Updated: Thursday, July 19, 2018

The CASE i3 Consulting Practicum (CASE i3CP) offers your organization the opportunity to engage with a team of carefully selected MBA students from Duke University on an impact investing question you are currently addressing.  You benefit from the passion, fresh perspective, independence, and technical expertise our students bring to the CASE i3CP.  Our students benefit from the opportunity to apply their academic learning to an of-the-moment issue in the impact investing space.

How it works:  We select 5 to 7 impact investing-related projects annually and match each client with a select team of Duke University Fuqua School of Business MBA students.  Teams spend on average 400 person-hours researching, analyzing, and making actionable recommendations that they incorporate into client deliverables.  Teams work remotely with you and are directly supervised by Cathy Clark, Duke faculty member and Director of CASE i3.

Previous clients and projects:  We're proud to have a 100% client satisfaction rate over the last 3 years.  Some of our 30+ previous clients include Calvert Impact Capital, World Economic Forum, Investors' Circle, SJF Ventures, Mercy Corps, Big Path Capital, and more.  You can read a Q&A with one of last year's clients, Quantified Ventures, here.  Some of our past projects have related to investment landscaping, impact assessment, product formation, and deal and industry diligence.

Final student deliverables remain confidential to the client, but a few of our clients have already gone public with the work our students did for them.  You can find a blog post by SJF Ventures here and from Investors' Circle's PCC fund here.

We're thrilled with the responses we've received from clients:  

  • “The CASE i3 Team was a dream to work with.  They were curious, diligent, and rigorous in their research and analysis – always ensuring that the work would be helpful and relevant to our organization in the long run.” – Calvert Impact Capital
  •  “We benefited greatly from the CASE i3 team’s diverse skill set and self-directed approach in analyzing opportunities for expansion.”  – Mercy Corps Social Venture Fund

How to apply:  Applications are open until August 31, 2018 to work with our MBA students over the 2018-2019 academic year.  To find more information on the work timeline and the online application, click here.  Email Carrie Gonnella at carrie.gonnella@duke.edu with any questions.

Tags:  Access to Finance  capacity development  education  finance  impact investing  impact investment  MBA  mentoring 

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GroFin - Transforming SGBs in Africa & the Middle East

Posted By Shailen Neewoor, GroFin, Wednesday, June 13, 2018
Updated: Friday, June 15, 2018

Gain a deeper understanding of how GroFin, through its unique investment model in SGBs, is positively transforming small and growing businesses and the local communities they support. The inspiring success stories of its entrepreneurs exemplify the collaborative efforts of GroFin staff, investors, partners and clients. The 2017 GroFin Impact Report, Nomou Impact Report and Aspire Impact Report translates its faith in the power of the collective by asking the question “If not us, who? If not today, when? If not with our finance and support, how will these small businesses grow and succeed?”

2017 GroFin Impact Report

As at end 2017, GroFin has financed 675 small and growing businesses, supported 8,840 entrepreneurs, sustained a total of 86,190 jobs and touched the lives of 430,955 family members in the local communities across our 15 locations of operation in Africa and the Middle East. The report indicates that GroFin has made more investments in its priority sectors of education, healthcare, agribusiness, manufacturing and key services. Furthermore, GroFin invested US$ 60M in nearly 88 new small and growing businesses, with over 50% of the SMEs operating directly in our sectors of focus, sustaining 14,000 total jobs and supporting an additional 72,000 livelihoods. And to reinforce its value proposition of providing 'support beyond finance' the company introduced the GroFin STEP (Success through Effective Partnerships) Programme to support its SMEs and Entrepreneurs.

2017 Nomou Impact Report

The Nomou Programme is a regional initiative in MENA which was co-created by GroFin and Shell Foundation. As a result of the collaborative efforts of its investors, partners and clients, the Nomou programme is contributing to the alleviation of poverty and improvement of livelihoods in the communities where the programme operates, as well as striving to reduce the adverse impact of the humanitarian crisis in the region.

In 2017, the Nomou Programme supported 1,005 entrepreneurs, made investments into 103 SGBs, sustained a total of 10,287 jobs, touched the lives of 51,435 beneficiaries and added economic value of US$ 149 million per annum through its investee SMEs across Egypt, Jordan, Iraq and Oman.

2017 Aspire Impact Report

Since their inception in 2014, the Aspire Small Business Fund (ASBF) and the Aspire Growth Fund (AGF) have sought to promote local entrepreneurship, employment and economic value-add in the Niger Delta. With the Shell Petroleum Development Company of Nigeria Limited (SPDC) as anchor investor, the Aspire Enterprise Development Funds epitomise GroFin, a private development finance institution, and SPDC’s efforts to serve the local community with a combination of investment funds, business skills and market linkages.

In 2017 GroFin increased its commitment to supporting SMEs in the Niger Delta Region by investing in an additional 17 small and growing businesses and extending further funding of US$ 2.5M (140% increase from total amount invested as at end 2016). As at end of 2017, GroFin has supported 365 businesses, invested in 53 SMEs and sustained a total of 1,975 jobs under the Aspire Funds.

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Tags:  2017  A Access to Finance  Access to Finance  Africa  Agriculture  ANDE Africa  ANDE Members  Base of the Pyramid  Business  business training  capacity development  DGGF  East Africa  education  finance  impact  impact investing  impact investing; gender lens investing; gender; w  impact investment  impact measurement  innovation  Investors  Kenya  MENA  missing middle  Philanthropy; impact investing  Private sector development  Rwanda  SDGs  SGB  SGBs  SGBs; accelerators; East Africa  SGBs; Environment; accelerators; energy  SGBs; West Africa; Senegal; Africa; MENA; Entrepre  small and growing agrobusiness  smes  social impact  South Africa  sustainability  sustainable development  Tanzania  Training  Uganda  West Africa 

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MDIF closes $6-million media impact fund

Posted By Peter Whitehead, Media Development Investment Fund, Tuesday, March 20, 2018
New York, March 19, 2018: Media Development Investment Fund (MDIF) today announced final close of MDIF Media Finance I, a $6-million impact fund investing in independent news media in select emerging and frontier markets.

“We are delighted to have closed MMF I and ramp up financing for companies that provide the news, information and debate that people need to build open societies,” said Harlan Mandel, MDIF Chief Executive Officer. “MMF I loans will help build companies that expose corruption, hold governments to account and provide balanced coverage of elections.”

MMF I provides affordable debt to independent news companies in a range of countries where access to free and independent media is under threat. The fund will invest in companies in countries such as India, Ukraine, Bolivia and Lesotho.

MMF I notes pay 4% annual interest and, under a pioneering agreement with the Swedish International Development Cooperation Agency (Sida), MDIF and Sida provide investors with 55% first-loss protection. Sida also provides technical assistance grants to fund investees to build their management capacity.

MMF I investors include the Open Society Foundations (Soros Economic Development Fund), Dreilinden, a Dutch family office and Antonis Schwarz.

“MMF I will finance investments in software, equipment, content production, workspace, as well as working capital and short-term cash-flow needs – all vital for company growth,” said Mr. Mandel. “With the successful close of MMF I, we are now looking forward to launching MMF II later this year.”

About MDIF

MDIF is a New York-based not-for-profit investment fund for independent media in countries where independent media are under threat. It has 22 years’ experience of helping build quality news and information companies – print, digital and broadcast – in emerging markets. It has:

  • invested more than $166 million in 114 media companies
  • worked in 39 countries on 5 continents
  • a current portfolio of more than $60 million invested in over 50 media organizations

For more information, contact Peter Whitehead, MDIF Director of Communications, peterawhitehead@mdif.org, +44 7793050670.

Tags:  emerging markets  impact investing  impact investment  social business  social impact 

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Three Powerful Tools for Fintech Practitioners

Posted By Jane Del Ser, Bankable Frontier Associates, Tuesday, January 16, 2018
Updated: Wednesday, January 17, 2018

By David del Ser

(Watch our video)

Since we launched the Catalyst Fund in 2015, we have helped 15 fintech entrepreneurs deploy novel approaches to bring products and services to their customers. We have distilled the successful patterns and behaviors we have observed into toolkits and posts for those considering fintech methods for their businesses, whether they be startups or established players.


At a high level, successful fintech startups adopt principles of Design, Risk Management and Product Management, and also put modern technologies like smartphones, artificial intelligence and cloud computing at the core of their value propositions. At successful fintech startups Designers, Product Managers, CEOs and Engineers reinforce each other in multidisciplinary teams to explore the overlap between what customers find desirable, what engineers can build, and what the business requires to grow.

Design

The function of Design is to represent the voice of the customer at all times to make sure a company stays centered on what matters most. Design is not a one-off process. In the spirit of customer validation, designers keep tight feedback loops with customers throughout the product development process, from early prototypes to usability testing of new features.


Through user research (UX) techniques like online surveys and one-one-one interviews, designers invest heavily during initial stages in order to know their customers like the back of their hand; what are their problems and pain points, and how can their company help? In fact, designers segment customers into personas to allow the team to constantly keep in mind different user profiles and needs.


Aesthetics matter. Designers work hard to perfect a product’s UI and its look and feel, so it can live up to the high expectations created by WhatsApp or Google. But great design goes beyond just user research and visuals during early product design stages. Successful inclusive fintech startups map out the Customer Journey and Service Blueprint in detail to fully understand the perspective of the user each time they  interact with the company.


Ultimately, great design creates trust, that elusive quality that all startups are chasing and that distinguishes them from their competitors. We’ve captured our lessons for startups to build trust with their customers through their products or services in our Design for Trust Toolkit.


Product Management

But designers can’t work in isolation; they need someone to lead the orchestra - and that’s where a product manager comes in. The PM takes a big picture view and works to ensure that designers, engineers and marketers all work towards the same goal. Crucially, she makes sure the product or service goal is backed by data and evidence. She keeps the whole process nimble through quick agile iterations focused on the activities of users, from initial onboarding to the retention phase. For example, using A/B Testing and usage analytics she captures details of how each users is interacting with every screen to inform engagement.


The effective product manager is very focused on the key metrics for the business, such as customer lifetime value or acquisition costs. She also works hard to explore the best channels to find new customers, including viral referrals and social media. As an example, our portfolio company Destacame has seen lead acquisition costs dropping to less than $3 through these types of digital channels. We explore some of the different tools and frameworks to help startups focus as they chart their journey from idea, to minimum viable product (MVP) and growth in our upcoming product/market fit toolkit.

Modern Technologies

And finally, you can’t have good fintech without the “tech” that is enabling these new approaches.


Most important are the smartphones, which run fintech apps and also act as channels to find and interact with users. For instance, several of our startups use WhatsApp to offer customer support and drive virality, communicating with users in the way they prefer. Smartphones can also be used to generate and capture user data, which is particularly valuable when targeting low-income consumers who traditionally have been anonymous. In that vein, our portfolio company Smile Identity validates and authenticates customer identities using selfies taken on their phones.


In addition machine learning and other artificial intelligence systems can improve customer value propositions and to automate internal processes like credit scoring using data from smartphones and other new sources like satellites. As an example, our portfolio company ToGarantido is exploring chatbots for sales of their insurance policies and customer support. Harvesting is using satellite data to understand credit and insurance risk with just a GPS read. Worldcover doesn’t even need customers to file a claim as their satellite systems award them automatically.


And software engineering helped Escala and Paygo Energy to automate most of their back-office processes to be responsive to their customers. It is easier and more affordable than ever for startups to leverage affordable SaaS solutions to architect their systems. Likewise, cloud computing is also a powerful technology that offers simplicity, lower costs and flexibility. There is no need to commit capital to purchase hardware and the team requires less engineering talent to keep the servers going.

Conclusion

In our experience, companies that harness the powerful combination of design, product management and modern technologies create better and more tailored value propositions. That makes for happier customers, which is what makes businesses thrive. By driving more usage, the fintech triad can create more impact in low-income populations. And digital channels and automated processes can significantly lower costs of serving customers, allowing for expansion to new markets and reducing exclusion.


Learn more by joining us for our webinar on the Catalyst Fund toolkits during the ANDE Sector Update call in January. Register here.


Tags:  Acceleration  accelerator  accelerators  Africa  ANDE Africa  Base of the Pyramid  brazil  Business Models  capacity development  early stage ecosystem  emerging markets  entrepreneurship  finance  financial inclusion  fintech  Grants Rockefeller  impact investing  impact investment  inclusive innovation  India  India; ANDE members  innovation  Kenya  Latin America  mentoring  Mexico  SGBs; accelerators; East Africa  smaholder farmers  smes  social enterprise  social entrepreneurship  social innovation  webinar  West Africa 

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​Agora Partnerships Launches Application for 2017 Accelerator Cycle 2 Class

Posted By Elysa Neumann, Agora Partnerships, Thursday, March 9, 2017
https://www.youtube.com/watch?v=BKRdMGQbY_Q&feature=youtu.be

 
Agora Partnerships has launched applications for its 2017 Accelerator program.
 
Through its flagship Accelerator program, Agora Partnerships strives to accelerate the shift to a sustainable economy by providing entrepreneurs who are intentionally building businesses that solve social and environmental challenges in Latin America and the Caribbean with the resources they need to grow. Since 2011, 125 companies working in 19 countries in Latin America and the Caribbean have participated in the Agora Accelerator, raising USD $52MM in capital and creating over 5,000 jobs. This year, in solidarity with the United Nations’ Sustainable Development Goals (SDGs), Agora Partnerships is aligning our Accelerator tracks to advance the SDGs.
 
The Accelerator is a 4-month program designed to provide high-potential entrepreneurs with the knowledge, network and access to capital necessary to create system change, through in-depth, personalized, 1:1 consulting; access to the Agora Partnerships’network of mentors, investors, and capital opportunities; and a global community of peers.
 
Agora’s Accelerator program is designed for companies who are solving social and environmental challenges in Latin America and the Caribbean, matching the following criteria: 
 
  • early or growth stage, past proof-of-concept; 
  • currently looking for investment to scale; 
  • legally incorporated as a for-profit structure with basic accounting systems in place; 
  • average annual income of USD $50K to $2MM; and, 
  • with a clear, measurable and sustainable impact.
 
Agora Partnerships looks to work with entrepreneurs who embody the leadership qualities of agency, empathy, curiosity and perseverance.
 
To apply to Agora Partnerships’ 2017 Accelerator click here.
 
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Agora Partnerships is a network committed to leveling the playing field for entrepreneurs by finding innovative ways to drive more human, social, and financial capital to the leaders and ideas that will make our world a better place. To learn morevisit: AgoraPartnerships.org

Tags:  Acceleration  accelerators  Agriculture  Business  Caribbean  central america  energy  Entrepreneurship  Environment  impact  impact investing  impact investment  innovation  Latin America  nicaragua  SGBs; Environment; accelerators; energy  small and growing agrobusiness  social ent  social enterprise  social entrepreneurship  social impact  sustainability  talent  Women 

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Presenting the report Moving the Needle: Critical Success Factors for Scaling Asset Finance

Posted By Paula Rodriguez, InspiraFarms, Monday, October 17, 2016

A new report by Epven, with support from the Shell Foundation and the Small Foundation, explores the challenges and emerging solutions to scaling asset finance options for small and growing agribusinesses (SGBs) in developing countries.

 The investment opportunity in agribusiness assets in emerging economies runs into the billions of dollars. The social and environmental benefits that can be gained by reducing food losses, increasing employment and enterprise sustainability, as well as empowering women and rural communities, are equally significant.

 Despite this opportunity, most small-scale agribusinesses in developing countries lack access to reasonable financing options for acquiring such assets, falling into the “missing middle” and facing a combination of unrealistically high collateral requirements and unaffordable interest rates. It s estimated that formal financial institutions meet less than a sixth of the $200 billion in demand for financing from smallholder agribusiness globally.

 Asset financing is one form of finance that is quickly emerging as a promising new model with a growing number of providers diversifying into the sector. The report Moving the Needle: Critical Success Factors for Scaling Asset Finance examines the potential of asset finance to reverse this financing gap. Reflecting the first-hand experiences, innovations and perspectives of over 70 asset finance experts in Kenya, Guatemala, and India—the “coal-face” of the industry—the report highlights four critical success factors that drive scale in asset finance:  

1.     The asset must be liquid to act as its own collateral. There must be a market for the asset, and resale value must be measureable.

2.     SGBs must demonstrate their capability to effectively utilize the asset. The use of cash flows is recommended for the calculation of financial viability and creditworthiness.

3.     SGBs must have a stable and secure market for the expected outputs of the asset. Having secure contracts from buyers in the agricultural sector is a positive incentive for financial institutions and for securing a stable stream of revenues for SGB’s.

4.     Network organizations like ANDE, the GIIN and the Sustainable Food Lab support more and better ecosystem collaboration between technology companies, financial service providers and producers and buyers along the agricultural value chain.

The report summarizes key roles for the main actors of the asset finance ecosystem, followed by detailed recommendations for capacity developers, 2nd tier investors, donors, DFIs and foundations, technology companies, and the financial service providers at the coal face.

 

To read and download this report by Epven, with support from the Shell Foundation and the Small Foundation, please visit http://www.inspirafarms.com/articles-publications/

TITLE: Moving the Needle: Critical Success Factors for Scaling Asset Finance

Authors: Tim Chambers and Jack Luft

Contact Person: Tim Chambers (tchambers@epven.com)

 

 

 

Tags:  Access to Finance  Agriculture  ANDE Members  asset finance  farming  impact investing  impact investment  inclusive business  innovation  Investors  microfinance  post-harvest  small and growing agrobusiness  value addition 

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