Capria’s theory of impact goes beyond providing catalytic capital, aiming to impact populations or systems that lack access to resources, essential products and services, or higher quality employment opportunities. In the long term, we envision dozens of new markets where thriving entrepreneurial ecosystems will be fueled by local and global capital flow, healthy competition will be established among entrepreneurs and local investors, and a network of advisors and mentors will support the continued ecosystem development.
Our investment strategy generally envisages impact across three dimensions:
- Underserved markets – Fostering innovative fast-growing tech-enabled businesses that profitably deliver sustainable products and services in vast, largely under-served markets of the Global South including India, Southeast Asia, Latin America, and Africa.
- Underdeveloped – relatively new investment market, subject to systemic challenges, including governments coming out of crises and/or with unfriendly policies around entrepreneurship;
- Developing – investment market is emerging with policies friendly to entrepreneurship, and overcoming challenges to accessing human and financial capital; or
- Established – the investment market is relatively proven and well-functioning.
- Catalytic capital – Providing access to early-stage and early-growth capital to entrepreneurs that are largely undervalued, in forms best suited to their needs. Across different countries, the gaps in early stage capital vary, creating specific market opportunities to make investments. The need for early-stage and early-growth capital ranging from USD $500,000 to $1.5M from impact investors, institutional investors and venture capitalists who may or may not consider themselves “impact”, but have an inherent impact focus, can be:
- Critical – limited availability of capital;
- Less critical – the opportunity to invest has been identified and investors are headed in that direction; or
- Supplemental – capital is generally available.
- People and environment – Investing in a diverse range of companies primarily addressing local consumption of essential products and services resulting in resilience to economic downturns. Target demographics for these solutions include investments in the bottom of the pyramid, minorities, women, refugees, environment, etc.
Capria’s impact report is compiled with data collected from the underlying portfolio companies of the funds in which we have invested as well as from Capria’s warehoused investments. We have identified key impact metrics that align with Capria’s impact framework. As companies grow over time and the domain of impact increases across our portfolio, we expect to report on additional metrics in future reports.
Across all metrics, this report represents all underlying portfolio companies’ impact, whether they are investments made through Capria Network funds or Capria’s warehouse investments. This report does not account for Capria’s specific contribution based on percentage interest in these funds or companies, nor does it measure the significant individual support and Capria Network support provided. Below is a table of definitions for the metrics across the three dimensions included in this report.
|Dimensions of Impact||Key Performance Metric||Definition|
|Catalytic Capital||Capital invested in portfolio companies||Investments made by Capria Network fund managers (funds in which Capria Fund invested) in underlying companies and by Capria through warehoused investments|
|Catalytic Capital||Gross revenues generated||Gross revenues generated by underlying portfolio companies|
|Underserved Markets||Shortlisted pipeline companies||Number of companies that pass a qualifying financial and impact screen, typically known as a Go-No-Go decision|
|Underserved Markets||Portfolio companies||Number of direct investments made by portfolio funds and Capria’s warehouse and direct investments|
|Underserved Markets||Number of engaged local advisors||Local advisors who could be part of the board or advisors working with both portfolio funds and underlying companies|
|People and Environment||Lives impacted||Lives impacted includes all low and middle income individuals directly impacted by the underlying funds' portfolio companies; it does not include household members indirectly impacted. Low and middle income lives impacted populations include (a) any person or population who is not high income in an emerging market (low and middle income), (b) any person or population who is low income in a high income country, or (c) persons and communities with limited access to natural resources and economic opportunities. Lives impacted include any individual impacted along the value chain - end users, customers, suppliers, producers. In this report, lives include microcredit borrowers, patients, students, laborers, teachers, store owners, etc.|
|People and Environment||Jobs created||Quality new long term full-time / part-time / contracting jobs; quality entails safe and healthy working conditions with fair wages. As an example, jobs metrics may include employees of underlying companies, smallholder farmers, and customer-facing agents of underlying companies, etc.|
|People and Environment||Number of CO2 emissions reduced||Amount of reductions in greenhouse gas emissions|