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Investment framework

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Its an presentation on investment framework of an social venture capital company

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Investment framework

  1. 1. INVESTMENT FRAMEWORK<br />MBDS,Shillong<br />
  2. 2. PHILOSOPHY OF INVESTMENT=SRI?<br />
  3. 3. Where are we putting our $?<br />Sub sector Studies<br />Demonstrations<br />Technical Consultancy<br />Workshops<br />Capacity Building<br />Seminars<br />Review Meetings<br />Enterprises<br />Land Purchase facilitation<br />BDS facilitation<br />
  4. 4. DEMONSTRATION<br />Demonstrations are to be established mainly with a view to create more opportunities in the project area so as to facilitate easy access to the beneficiaries in making informed choices about the livelihoods and micro-enterprises to be taken up for income generation and food security. These demonstrations would be in the farm and non-farm sector.<br />Typically Demonstration fund is Grant .Can it be Returnable Grant with a longer repayment period? Can it be partnership ?<br />How to decide the nature of funding?<br />Demonstration = Income Generation Activity?<br />How to select beneficiaries for demonstrations?<br />Beneficiaries = entrepreneurs?<br />
  5. 5. DO WE NEED DEMONSTRATIONS ON ?<br />Integrated Jhum? <br />Jhum Ginger /Spices farming<br />Processing of rice?<br />Integrated farming?<br />SRI? <br />Organic food? Certification? Collection and grading?<br />Seed Production?<br />Vermicompost? Packaging and grading of vermicompost<br />Apiary? Honey Processing? Honey Certification? Bee swarming? Bee migration?<br />Power tiller? <br />Agri implement hiring centre?<br />Agriculture Input Centre?<br />
  6. 6. Market shed?<br />Cold storage? Conventional? Traditional?<br />Transportation–vehicle/ropeways/mule? <br />Kitchen-garden? <br />Orchard: cashew nut/orange/areca nut? <br />Turmeric/ Ginger cultivation processing and marketing<br />Cashew cultivation processing and marketing<br />Off season vegetable production and marketing<br />Horticulture Nursery? <br />Fruit and vegetable Processing?<br />Poly house/tunnel?<br />Floriculture ? Seed/Bulb Production? Marketing and grading centre? Essential Oil Processing<br />
  7. 7. Water Harvesting?<br />Micro-Hydel? Water Mills?<br />Micro-Irrigation?<br />Piggery? Breeding? Fattening?Bokashi?<br />Dairy farming? Bull breeding?<br />Milk processing? Milk Vending?<br />Cattle Feed Block<br />Cow urine processing & value addition?<br />Leather tanning?<br />Goat rearing? Meat vending<br />Sheep rearing? Wool collection?<br />Artificial Insemination centre?<br />
  8. 8. Fishery? Cold water fishery? Fish bredding?Ornamental fish? Fish Feed? Fish vending?<br />Home stead Poultry? Egg/meat production –marketing? Mother unit? Hatchery? <br />Poultry feed?<br />Duckery? Hatchery?<br />MAP? Nursery? Processing?<br />Cinnamon leaf (Tejpatta) production and improved trading (proper drying, storage, grading ?<br />Pine tree (Pinuskeysia) management by community groups for resin wood, resin or coal?<br />Small wood production with village-level processing by Activity Groups?<br />
  9. 9. Management of bamboo by SHGs on forests, abandoned/ current shifting cultivation areas; bamboo shoot production, processing, and nurseries; bamboo value adding mats production?<br />Broom grass production, processing, marketing?<br />Fodder plantation?<br />Handicrafts?<br />Broom stick production, processing and marketing?<br />Production of aromatic products, processing and marketing?<br />Muga and eri sericulture including rearing silk worms for food?<br />Sustainable collection and improved trading of lichens and moss? <br />
  10. 10. Large Cardamom production and trade?<br />Packaging leaves (Phyrnium sp) for local and regional markets?<br />Agro-forestry?<br />Fodder tree plantations?<br />Nurseries?<br />
  11. 11. What about RNFS?<br />Ecotourism: Homestays,Tour operators, Guides, Interpreters , Cooks?<br />Weaving? Product Design?<br />Designer Candle making? <br />Hand made shop?<br />Hand Made Paper?<br />Rural Non Conventional Energy Implements? <br />Grocery? Collective Marketing?<br />Computer Education? DTP?<br />MeSEB Franchise?<br />
  12. 12. If we promote the items listed above from the demonstration fund then should it be loan or grant? Can we give soft loan for demonstrations? What will be @ of interest for soft loan?<br />What should be the maximum tenure for repayment?<br />What will be the repayment schedule for soft loan? Weekly or monthly? Or Flexible repayment schedule?<br />What documentation is needed for sanctioning loan? What shall be our criteria for funding?<br />Who will be responsible for recovery of the loan amount?<br />Are we going for 100 per cent funding on the project cost? <br />Should fund be released to SHG or member directly?<br />
  13. 13. MICRO ENTEPRISE<br />What is the difference between Micro Enterprise and IGA?<br />What to promote :<br />Group Entrepreneurship <br /> Activity Group <br /> Individual Enterprises? <br />What type of micro enterprises we are going to promote?<br />How will you prepare and apprise the funding proposals? What skills are required for appraisal of project proposal?<br />Do we need business plan for every investments even for IGA?<br />What will be our minimum and maximum level for investment?<br />
  14. 14. What are the types of funding possible in an Micro Enterprise /IGA?<br />Debt <br />What will be our loan products? How will it be different from others? Are we also going to have loan product like personal loan?<br />What will be our loan process? How much time we must take to process a loan?<br />What will be the rate of interest rate? Reducing or Fixed Interest rate? <br />Equity/Near Equity<br />Mechanism of investment?<br />When to exit?<br />How to exit?<br />What about micro leasing? <br />What about guarantee fee?<br />
  15. 15. How to decide the nature of funding options? <br />Which stage of Enterprise lifecycle we are going to fund?<br />What should be the strategy for investment for the ultra poor? What package of investment services we are going to provide to women and the people with disabilities?<br />What social returns we anticipate from a project?<br />How will you address Risk Management issue of Enterprises? How will you address the risk management issue of entrepreneur?<br />Are we going to promote insurance products of third party? What about designing mutual insurance products?<br />Who will manage the investment portfolio?<br />Is Participatory Enterprise Monitoring Possible?<br />
  16. 16. What records we are expected to keep at Enterprise level and DMU/PMU level?<br />What will be our negative list of investment?<br />What will be the size of investment for IGA,Micro enterprises?<br />Are we going to fund enterprises beyond project areas? If yes Why? How? <br />Which sector will be our priority sector for funding?<br />What will be our strategy for funding traditional sector?<br />What will be the strategy for converge for enterprises? <br />What should be the component for our MIS?<br />What will be our level of involvement in enterprises ? How we will govern the investments in the enterprises? How far is it feasible?<br />
  17. 17. LAND BANK<br />The pilot initiative aims to : <br /> <br />Ensure security of access to productive assets for target households, especially landless families, on both jhum and non-jhum lands,<br />Build the capacity of village level institutions in land management, thereby strengthening them in their traditional role of supporting livelihoods through efficient and equitable natural resource management,<br />Link target households to credit, marketing, extension, business development and technical services,<br />Check the trend towards privatisation of community lands,<br />Provide a replicable model for wider application. <br />
  18. 18. Should we invest directly in land and lease it to communities?<br />Should we facilitate the community to procure land on lease?<br />Do we need land bank committee ? <br />Are we going to route funds to beneficiaries through land bank committee?<br />
  19. 19. CONVERGENCE<br />Is the community ready for convergence?<br />Is the need reflected in the village Plan?<br />Is the community ready to make cash/lab our contribution?<br />Does the community have capacity to manage the convergence?<br />Will the quality of life of the community improve?<br />Is it going to make the poorest families dependent on MRDS/LIFCOM or will the intervention promote a sustainable process of empowerment and freedom from poverty?<br />Will it ensure that a proportionate 80 per cent or more investment would be extended by the concerned partner/agency if MRDS/LIFCOM invests a nominal amount of the project cost? What will be percentage share of investment of time and money by MRDS/LIFCOM and the partner organization for the project?<br />

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