Investing In Small & Growing Businesses

In Fragile And Conflict Affected States

IGNITE FUND

Most of the conflict is fueled by lack of

economic opportunities rather than

just political grievances. (Ibid; World Bank 2013;

Dudwick et al 2013)

Improvement of economic condition reduces

chances of recurring conflict in fragile states: 10%

economic growth rate can reduce a country’s

chance of relapsing into war to 27% (Collier, Hoeffler and

Söderbom, 2006:10)

Our Social Impact

Poverty feeds conflict, and conflict feeds

poverty. (Kapstein; Economics and Conflict: What’s the Connection 2014)

IGNITE Fund finances and supports ambitious and innovative entrepreneurs in

fragile and conflict-affected states. Growth of these businesses is critical for the

economic development and the poverty reduction in these environment and

serves as an ultimate insurance against instability and conflict.

Our Investment Thesis

Pioneer

Dividend

Perception

Arbitrage

High Growth

Potential

Uncorrelated

Return

High unmet

Demand

Minimal

Competition

Spark’s 20yr

experiences in

conflict affected

states with our

local offices in

15 countries

provides us with

better

understanding

of investment

landscape

There are

limited

competitions

especially for

less than Euro

400K

transactions –

Companies with

limited asset

but strong cash

flow cannot

access capital

There are pent

up consumer

demand for

products and

services, which

are mostly

imported.

There are

extensive

government and

international

nation building

subsidies and

grant programs

which targets

key industries

Conflict affected

states are also

one of the most

rapidly growing

economies in

the world

Financial

returns in

successful

businesses in

conflict affected

states are

uncorrelated

with the

developed

economies

SPARK, founded in 1993, develops higher education

and entrepreneurship to empower young, ambitious

people to lead their conflict affected societies into

prosperity.

Capacity

Dev &

Business

Incubation

Small

Business

Loans

PE

Investment

Vehicle

SPARK & IGNITE Fund

Over 900 Business

Supported and new

intakes every year

Less than Euro 15K

loans : ~300 loans(Partial Risk Guarantee Instruments

at local banks & Direct Small

Business Loans)

Euro 25Million target

closed-ended fund

structure

Head office: Amsterdam, Netherlands

Field office: Afghanistan, Burundi, Ivory Coasts, Iraq, Kosovo, Libya, Liberia,

Mali, Myanmar, Occupied Palestine Territories, Rwanda, Serbia, South Sudan,

Somalia, Yemen

Spark works in 15 Fragile and post-conflict states around the world

IGNITE Fund Target Countries

Kosovo South Sudan Mali Liberia Rwanda Burundi Somalia Palestine

Our Challenges

Valuation

Transaction

Cost

Deal Exits

Legal

Enforcement

Business Skills

& Governance

Improve stability of

the society

Improve Human

Security

Reduce marginalization of

communities

Improve Local compliance

Increase job creation

Increase Access to basic

services

Improve Equality and

Fairness

•Increase adherence to local standards/rules

•Increase access to services (Healthcare, finance,

Education) to marginalized communities

•Increase income of marginalized communities

•Number of New jobs created

•Improved quality of job for individuals

•Increase predictability of income

•Increase quality of services

•Reduction of barriers to quality of life

•Reduction of discrimination based on: gender, civil status,

family status, age, race, religion, disability, sexual

orientation, membership of marginalized communities

IMPACT OUTCOME METRICS

Reduction of the drivers

and effects of the

conflict

Reduction of social

tensions

Increased cross

community engagement

•Increased cross community understanding of the "other"

•Improved cross community perception of the "other"

•Increase in preference for dialogue as a means to resolve

social tensions

•Increased cross community employment (all levels)

•Increased cross community sales / customers

•Increased business with cross community suppliers

Ref: http://www.clubmadrid.org/en/ssp/resources_on_shared_societies

Impact Measurement

Investment Advisor

Contact us

For more information, please contact us

Stichting Spark

Van Diemenstraat 70

1013 CN Amsterdam

The Netherlands

Office: +31 20 7530311

www.spark-online.org

Steven S Lee

Fund Manager

Email: s.lee@spark-online.org

Marc de Klert

Programmeme Manager

Email: m.d.klerk@spark-online.org

Disclaimers

DISCLAIMERS: The IGNITE Fund is an initiative of SPARK, registered under Dutch law as fonds voor gemene rekening. The

Fund has not been or will not be registered with U.S. Securities and Exchange Commission. The offering and investment in US is

made only to qualified “accredited investors” as defined in Regulation D under U.S. Securities Act. We accepts no liability for the

content of this document, or for the consequences of any actions taken on the basis of the information provided, unless that

information is subsequently confirmed in writing. Any prospective investors must consult the Fund’s prospectus. Any information

on this document which contradicts the content on the Prospectus is considered an error. Any views or opinions suggested in this

presentation which contradicts or omitted on the Prospective are solely those of the presenter and do not necessarily represent

those of the Fund. This document contains confidential information and is intended only for the intended audience. If you are not

the intended audience, you should not disseminate, distribute or copy this report. If you have received it by mistake, please let us

know by e-mail and delete it from your system; you may not copy this message or disclose its contents to anyone.