Date: 2014 | Country: India | Sector: Social/Impact Enterprise | Client: US foundation
A key issue in impact investing is confusion over the life stage of “social” or impact enterprises at which investors should engage with them. Although many investors claim or think they are early stage, in fact there is very little investment available to companies at this point.
In this mandate we assisted the client – a major US foundation with a growing focus on India – to understand the options available to it to work with early stage companies. Because the foundation has no base in India or intention of establishing one, this engagement would need to be through intermediaries, either existing or which it could help create. Using the Blueprint/Validate/Prepare/Scale language developed by Monitor, we analysed the type of capital – grant, debt, equity and guarantees, or combinations of these – that would be most appropriate for companies at different lifestages. We also drew what we believe to be a useful distinction between social and impact enterprises.