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What’s Really Driving Africa’s ‘Investment Frenzy’?: An Entrepreneur Responds to Investor Concerns
In her much-discussed NextBillion article about avoiding “the Africa investment frenzy,” impact investor Lauren Cochran urged entrepreneurs to forego the “growth-at-all-costs” approach to scaling and “the ego-boost of big rounds and press releases.” But Zoona co-founder Mike Quinn argues that her advice ignores a reality that many investors don’t recognize. Quinn pushes back on Cochran's argument from an entrepreneur's perspective in this compelling counterpoint.
- Categories
- Finance, Investing, Social Enterprise
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Creating Jobs While Fighting Poverty: An Innovative Social Micro-Franchise Model Gains Traction in Haiti
All too many global development efforts fail to appreciate the value of a steady paycheck – or the role of small businesses as job creators in poor communities, says Marc Blumenthal at Social Ventures Foundation (SVF). This has stagnated poverty reduction campaigns, leaving vulnerable populations in need after government and NGO funds dry up. He shares SVF's efforts to reverse this dynamic, through social micro-franchise business models that address poverty-related issues, while also creating sustainable jobs in low-income communities.
- Categories
- Investing
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Rethinking the ‘Africa Play’: Why We Held Back from the Africa Investment Frenzy
Earlier this year, the investment committee at Blue Haven Initiative’s Ventures team raised a painful question: Did they miss the boat? As managing director Lauren Cochran explains, they'd only made one new investment at a time when the venture market in Africa was exploding. But it soon became clear that the growth-at-all-costs model other investors were adopting was never going to work in Africa. Cochran explains why investors should "forget the ego-boost of big rounds and press releases" and take a more fundamental approach.
- Categories
- Investing
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Too Risky for the Crowd? Assessing the Potential of Crowdfunding for Energy Access
Crowdfunding raised $77 million for energy access between 2015 and the end of June 2019 – and the industry is on pace to generate over $200 million in crowdsourced financing by 2020. But despite this growth, Davinia Cogan at Energy 4 Impact points out that crowdfunding remains on the periphery of discussions about energy access finance. With the sector's estimated $33 billion in commercial capital needs, she explores whether – and how – the crowd can be part of the financing mix.
- Tags
- crowdfunding, energy access, SDGs
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A Spectrum of Solutions: How Impact Investors Are Funding the SDGs
Toniic recently released a report showing how impact investors are aligning their work with the Sustainable Development Goals (SDGs). Kristin Siegel, director of Toniic's 100% Network, discusses the findings – which include data from 76 Toniic member portfolios totaling $2.8 billion in committed capital. She points out that the data show how impact investors are "going beyond current media darlings" to include a variety of SDG-related focuses in their portfolios.
- Categories
- Investing
- Tags
- impact investing, SDGs
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It’s That Time Again – Here’s Your Official SOCAP19 Conference Preview
October is in full swing, and that means it’s time for SOCAP – the 12th annual gathering of investors, entrepreneurs and others helping to drive mission-focused business. It all happens next week, when SOCAP19 will host over 500 speakers and hold more than 150 breakout sessions at the Fort Mason Center for Arts & Culture in San Francisco. Team NextBillion will be there too - here's what to expect.
- Categories
- Investing, Social Enterprise
- Tags
- impact investing
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Exit Strategy: How Cashing Out Can Move Us Closer to Universal Energy Access
You might think that a lack of investment is the biggest problem facing off-grid energy companies. But as Leslie Labruto and Sarah Bieber at Acumen point out, in an industry that's seen over $1.4 billion invested since 2012, with only $50 million returned to investors, the lack of exits is an equally serious challenge. They discuss a new Acumen report that demonstrates how the shortage of exits is holding the sector back, and what can be done to address it.
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An Impact Investing Model Designed for Africa: Why the Continent Should Embrace Search Funds
According to Brendan J. Mullen of Secha Capital, there's a little-known but perfectly suited investment model for Africa's emerging markets: search funds. Often vehicles for young, aspiring entrepreneurs to finance, acquire and grow established SMEs, search funds trust the local market by directing capital to where it’s most needed. As Secha launches a new $30 million fund, Mullen shares how investments in both growth and human capital are yielding impressive returns.
- Categories
- Investing
- Tags
- impact investing, scale, startups
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