The document discusses the challenges and strategies of venture capital investing in the developing world, emphasizing the importance of local impact and the scarcity of up-round capital. It highlights the need for efficient syndication and capacity development, suggesting phased investing as a model for financing small and growing businesses. The report recommends actions such as treating capital as work in process and increasing collaboration with local capacity development organizations to improve investment outcomes.

2. moderatorJohn KohlerProgram Director for Social Capital at the Center for Science, Technology and Society

3. Venture capitalists have it easy…Venture investing in the developed worldTargets of opportunity are sourced locally

4. Investment syndicate drawn from local venture capital relationships

5. Results of venture capital backed product or service has a global impact

6. Well-defined path of “up-round” investing

7. Ready-made pools of “up-round” capital waiting for winners to emerge from previous financingVenture investing in the developing worldTargets of opportunity are sourced remotely

8. Investment syndicate drawn from the global impact investing community

9. Results of venture capital backed product or service has a local impact

10. Scarce “up-round” capital available 3

11. Are there…?Headwinds to Efficient impact investing markets-Dalberg

12. Horizontal Capital Aggregation ScopePrevious ReportsOutcomes of this studyExamine the requirements of capital from each source

13. Suggest a model for successful syndication

14. Participants across the ‘life cycle’ of SGB development

15. Terms to guide a successful ‘handoff’

16. Identify funding sources by mission and outcome

17. Provide examples of phased financing (rural electrification)

18. Suggest a template for future syndication

19. Building the case for impact investing

20. Study of the impact investing landscape

21. Larger scope of investing in businesses in the broader developing world – BOP loosely defined

22. Assertion of impact investing as an emerging asset class5

23. Direction of CapitalCapital SourcesCapital SourcesGeographyMissionIntermediaryFunding OrganizationSize of FundingType of CapitalDesired LiquidityType of SGBSGB Organizational ObjectivesDesired OutcomeReporting RequirementExpected Time FrameInvestmentOutcomesTarget6

24. Primarily foundations and individuals

25. Financial institutions and corporations are largely absent

26. Financial first vs. impact first discussion continuesSources of impact capital

27. Emerging use of multiple investing instrumentsSome funds are creating horizontal aggregation internally

28. Equity is tied to higher IRR targetsProgress in addressing the “missing Middle”Capital shift to > $750K