Relevant Ventures provides access to finance for social entrepreneurs in underserved markets.
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- Founding date: April ‘20
- Location: Kampala, Uganda and Vienna
Part of Poly Crisis Program #1
Sustainable Development Goals (SDGs)
Africa has a growing number of entrepreneurs who founded promising social enterprises with high impact and growth potential. Unfortunately, they lack access to funding to scale as they are at the periphery of capital markets: the people, places, and topics that the market neglect We invest in dynamic social enterprises, that solve a problem in their local community while having the opportunity to scale and be profitable.
The Purpose Pool model aims to close the investment gap for SMEs in underserved communities. We offer business development support and capital allocated through a peer-to-peer selection process and paid back on a revenue share. We provide early-stage social entrepreneurs with 5.000 — 50,000 USD as an investment. Entrepreneurs pay back a 5% monthly revenue share until they reach a return of a 1.5–2.5x multiple. Revenue share combines the advantages of equity and debt by providing enterprises with a flexible payback, return patience, and a pre-defined exit. Our revolving fund reinvests all paybacks to allocate to new social enterprises. This approach makes the fund self-sustaining and independent of ongoing external funding.