Investment Criteria

The Grassroots Business Fund works with organizations that meet the following criteria:

GBF Mission Fit Criteria

Base of the Pyramid Empowerment Focus
GBF seeks companies which focus on BOP empowerment and have a strong commitment to bringing measurable social impact at the grassroots level.

Country Focus

• Africa: Kenya, Tanzania, Zambia, Ghana
• Asia: India, Cambodia, Indonesia
• Latin America: Bolivia, Colombia, Peru

Excited to Work with Us
GBF is a hands-on investor and seeks companies that are enthusiastic to work with us in a close partnership.

Social Criteria

Beneficiary Impact

• GBF invests in organizations that generate direct and significant incremental income/ savings to its beneficiaries.
• GBF prefers to work with companies that impact in the range of 500-2000 direct beneficiaries, with potential to increase that impact at least 5-10 times over the period of the investment.
• GBF prefers to work with companies that generate immediate impact on its beneficiaries – ex. income generation, entrepreneurship support.

Environmental and Labor Responsibility
GBF invests in companies that are environmentally and socially responsible.

Financial Criteria

Investment Terms

• GBF seeks investments of $250,000 to $1 million.
• GBF is open to various investment structures including equity, quasi-equity, loans, and guarantees.
• GBF does not seek control of the company (in terms of equity ownership and/or voting rights).
• GBF expects to exit investments within a 3-5 year time frame.
• GBF also provides working capital loans to small export businesses in therange of $40,000-$150,000 through its Client Incubator Facility (“CIF” see separate CIF investment criteria).

Preferred Structures
GBF seeks opportunities where:

• GBF’s investment is key to scaling up the company
• GBF is providing less than 50% of total funding
• Other partners are able to provide additional financing for investment or technical assistance.

Operational Criteria

Competent Management Team
Strong/high potential management team with a successful history starting and/or managing companies, or with other industry experience and education, is essential.

Stage of Company
GBF prefers companies with a strong track record, but will consider early stage businesses on a case by case basis.

Defensible Competitive Advantage
Preference for companies that can protect their market position through high natural barriers to entry, first-mover advantage, high-quality products, etc.