Impact investing has solidified itself into a global industry of exponential growth since the concept emerged in 2007. According to GIIN's recent "Sizing the Impact Investment Market" report, which collected data from over 1,340 impact investors, the market is now just over half a trillion dollars US worldwide. Impact continues to build an […]
Category: Resources
12 Things you need to understand about the Silicon Valley model before using it in other markets
Investors and entrepreneurs in emerging markets like Asia should take notes They have seen several startups grow and fail, so a win or loss isn’t new to them. Yet, none of Matt’s investments strategies seem to be working in emerging markets. Matt’s situation is a common one. Many, like him, use the “cut and paste” method of Silicon Valley, […]
Emerging market venture funds are underutilising recycling to boost returns: Dave Richards, Capria
As a global emerging market fund investor, we evaluate more than 200 VC/PE fund proposals per year across Africa, Latin America, and South/Southeast Asia, and work closely with a global network of 16 fund managers we have invested in. I have found that recycling provisions could be better understood and better utilized across the industry by both […]
Venture Capitalists Beware: Here’s What Not To Share With Potential LPs
Quality limited partners will respect your boundaries on what you don’t share prior to their commitment to enter full due diligence on your fund. Recently, in a first meeting with an institutional LP, I was asked “How are you exactly allocating the fund’s carry amongst the team?” I responded, “We would be happy to share important details on this […]
Saved by a ‘SAFE’: Three Lessons from a Broken Impact Investing Deal
We don’t like SAFEs, but this one saved us. Many in the tech investment sector are familiar with the acronym SAFE. It refers to the “Simple Agreement for Future Equity,” and was first coined by the seed-stage accelerator, YCombinator (YC). SAFE instruments have become popular with early-stage founders in Silicon Valley, and for good reason. They […]
Why management fees for emerging-market VC funds should be predictable
The traditional private equity-birthed model for management fees does not align interests for limited partners (LPs) and general partners (GPs) for emerging market venture capital and early-growth PE funds that are under $100 million. As a global emerging market fund investor, we evaluate more than 200 VC/PE fund proposals per year across […]
Is your One-Pager, LP Ready?
Whether you are an experienced fund manager or in the process of raising your first fund, you cannot afford to miss the opportunity to make a great first impression when building a relationship with a new investor - and the first tool you will use to engage with an investor is your one-pager. You are competing for the LP’s time, you need to be able […]
Demand Dividend and Revenue-based Financing in Latin America: Q&A with Rich Ambrose of Pomona Impact
Pomona Impact launched in Guatamala in 2011 and makes investments in small growing businesses in Central America, Mexico, Colombia, and Ecuador. Pomona Impact particularly targets firms that improve the lives of people living in the bottom of the economic pyramid and/or benefit the environment, and has thus far made investments ranging from $50,000 […]
The Art of the Fund Preview
How to get LP feedback on your fund, prior to active fundraising Some of the first questions we ask a fund manager seeking investment from us are – How much capital commitment do you have and from whom? Where do you expect to get the rest of your capital? Some of the less exciting responses we’ve heard are – “I haven’t started […]
Fundraising Advice from a Leading Impact Fund Manager
Always be fundraising. In addition to the acceleration and advisory services support that Capria directly provides teams, we also pull in our advisors and other experts throughout our network to share lessons learned. One of the experts that teams have had the opportunity to hear from is Johanna Posada, a founding Partner of Elevar Equity. Elevar […]
Top 10 Success Factors for Fund Management Teams in Emerging Markets
Insights from our research and experience of working with fund managers in emerging markets 9 out of 10 people who want to be fund managers won’t raise a fund. The odds are against you. We like to compare fund management to being a decathelete – you have to be very good at ten (actually many more) really complicated and hard things if you […]
Defining what Impact means for your Fund
Does “empowering entrepreneurs” qualify as impact investment? What about investing in an indigenous technology? Will a business that processes stones for high end customers qualify as an impact investment? These are some of the dilemmas local fund managers face while creating their impact theses and laying the groundwork for their impact […]
