Post on 16-Jul-2020
REGIONAL INVESTMENT SUPPORT FOR ENTREPRENEURS (RISE)
Supporting the growth
of high-impact enterprises in
Southeast Asia
CONTENTSEntrepreneurs Face Challenges
RISE Supports Entrepreneurs and the Investment Eco-system
RISE Pilot Partners
RISE’s Inclusive TA Facility (ITAF)
Flexible Platform Enables Expansion and Scale
Innovations in Technical Assistance
Enterprise Repayment Modality
Gender Lens Investing
Priority Areas of TA
Fundraising
Benefits of Partnering with RISE
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ENTREPRENEURSface challenges
FINANCIAL challenges
50% of all ASEAN SMEs are either unserved or underserved in terms of access to credit, translating into a credit gap of $52.8 billion (2010).
Southeast Asia received only 6% of global impact investment capital (2015).
Private investment capital are primarily channeled towards more established markets.
Majority of SMEs fall within the “missing middle” – they are “too risky / small” to receive bank credit, but “too established / large” to receive grant or angel investments.
As a result, entrepreneurs rely on internal funds to fund their businesses – at least 40% of ASEAN SME capital are sourced from “friends and family”.
NON-FINANCIAL challenges
Underdeveloped leadership
Lack of business management strategies
Poor governance and structures
Insufficient technical knowledge and skills
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Priority Sectors
Agriculture, energy, health, water and sanitation.
Project Timeline
1 October 2017 to 30 September 2021.
Flexible Platform Design
RISE is a platform to support social impact entrepreneurs with technical assistance and investment capital. RISE currently includes a TA Facility for SMEs and one investment fund partner.
RISE supportsentrepreneurs
and the investment eco-system
Objective
RISE aims to create impact for the base of the pyramid in the ASEAN region through providing inclusive technical assistance (TA) to enterprises with high potential for positive social and environmental impact and by mitigating risk for investors.
Geographic Focus
CambodiaIndonesiaLao PDRMyanmarPhilippinesVietnam
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RISEpilot partners
USAID as the convener provides overarching vision and seed capital for RISE and supports the platform through its regional and institutional relationships.
UBERIS is the first impact investor to engage RISE’s TA Facility. UBERIS pro-vides debt and equity fi-nancing to transforma-tive enterprises across the ASEAN region.
SWISSCONTACT is the implementer, establishing and managing RISE’s TA Facility while seeking new funds for additional intervention areas.
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RISE’s inclusive TA Facility (ITAF)As a one-stop regional facility, ITAF can drive eff iciency, coordination, and opportunity. In partnership with investors, it enables social impact entrepreneurs to access a combination of finance and technical assistance.
RISE TA FACILITY
PARTNERSHIPS WITH INVESTMENT FUNDS
provide a pipeline of SMEs and aligns TA with investment capital.
InvestmentCapital
Investment Returns
PartnershipsRepay
TA costs
Contract TA to support SMEs
TA Services
Grants
Prioritization of TA needs
POOLED DONOR FUNDSamplify impact through economies of scale.
TA PROVIDERS vetted by RISE repeatedly deploy a range of existing services across enterprises.
Small and Medium Enterprises (SMEs) ranging from early to growth receive investments and repay both investors and RISE.
Fund 2 Fund 3
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Fund 2 Fund 3
Legal Advisors
Business Consultants
Subject Matter Experts Accountants
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FLEXIBLE PLATFORM enables Expansion and Scale
ITAF is one component of the RISE Platform. RISE will fundraise to expand operations to further support the entrepreneurial eco-system.
ITAF
NOW POST-FUNDRAISING
POTENTIAL FUTURE COMPONENTS
PRE-INVESTMENT SUPPORTBuild capacity of accelerators, incubators, business information centers, other intermediaries.
GENDER LENS INVESTINGPromote and track the inclusion of women as leaders, managers, employees, consumers, and suppliers.
SOCIAL IMPACT INDICATORS Contribute to stakeholder’s ability to measure social and economic impact.
OTHER AREAS OF DONOR INTEREST AND MARKET DEMAND.
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INNOVATIONS
ENTERPRISE REPAYMENT MODALITY FOR SMEs This repayment mechanism delays payment
for TA service to a pre-determined time in the future when enterprises have improved their cash flow, which is a key feature as SMEs are often cash constrained during the times when they most need TA services.
ONE-STOP SHOP FOR ENTREPRENEURIAL SUPPORTRISE can also serve as a consolidated channel for donor support to incubators, accelerators,
and other eco-system intermediaries. This would eliminate the need for redundant TA platforms, resulting in efficiencies of scale and cross- learning between SMEs and investors.
PACKAGE OF TA PRODUCTS DESIGNED FOR INVESTORSAND ENTREPRENEURS
The TA facility is going to develop a pool of local, regional, and international consultants and in-sure quality TA delivery. TA packages will align with the needs of investors and entrepreneurs.
SUSTAINABLE AND SCALABLE MODELThrough RISE, donor grant funding is
catalytic. It establishes a platform which gene-rates revenue as SMEs pay back the cost of the TA they receive, plus concessionary operating costs. The revolving fund will enable RISE to provide more TA to SMEs in the region.
in Technical Assistance
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ENTERPRISE Repayment Modality
TA provided through
concessionary loan to
enterprise
Growth of enterprises
enabled by TA support servicesand investment
capital
Enterprise repays loan back
to TA facility
GRANT SEED FUNDS FROM
DONORS
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RISE can test new frameworks to track gender equality among ASEAN SMEs.
The USAID-supported Gender Equality Mainstreaming (GEM) Framework tracks 31 “gendered” environmental, social and governance (ESG) indicators for SMEs. If interested, RISE investment partners can apply the GEM Framework across their portfolio or with a select cohort. This allows investors to track the inclusion of women as leaders, managers, employees, consumers, and suppliers of a portfolio company.
GEM Theory of Change
Gendered ESG frameworks mainstream inclusion of women
in policies and practices
Inclusive ESG practices promote women’s
(economic) empowerment
Women’s empowerment contributes to
gender equality
GENDER Lens INVESTING
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PRIORITY AREASS of Technical Assistance
Business Strategy
Governance and Legal
Human Capital
Sales and Marketing
Financial Management
Products and Services
Supply Chain
Management
ImpactAssesment
SMEs
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FUNDRAISINGRISE is currently seeking funds to sustain the project and support INCLUSIVE GROWTH OF ASEAN SMEs.
2017
SEED
$800,000USAID pilot funds
establish the platform, test the sustainability of the TA model with
a selection of investees, and support fundraising.
2018-2021
FUNDRAISING
$10+ millionExpand to support additional investors in the region.
Generate economies of scale that would allow RISE to channel an increasingly larger portion of funding into TA delivery.
Design, test, refine, and brand a portfolio of tailored products for investors and entrepreneurs.
Begin working in the eco-system support space.
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BENEFITS OF partnering with RISEDonors
An established structure throughwhich resources are channeled tosupport social impact entrepreneurs,investors, and other ecosystem actors (accelerators, networks,and business information centers).
A flexible structure that allows for bespoke, demand-driven interventions.
Focus resources on important challenges such as employment for lower income communities, pro-poor products and services, missing middle finance, gender equality and empowerment, and environment.
Investors
TA packages address the needs of your investees, beyond the core areas supported by your team.
Investees repay the cost of TA, but after cash flow improves.
A vetted pool of consultants ensure quality of TA delivery.
Consultancies
Matchmaking with social impact entrepreneurs in need of TA.
Introductions to relevant investors and intermediaries across the ASEAN region.
Branding opportunities through RISE communication materials.
THANK YOU!For more information, please email
Swisscontact RISE Team Leader, Kevin Robbins at kevin.robbins@swisscontact.org
USAID Private Sector Advisor, Mike Monteleone at mmonteleone@usaid.gov