RENEW Strategies

A New Strategy

RENEW'S STRATEGY

Minding the investment gap.


In the U.S. and other developed countries small and medium enterprises (SMEs) make up a majority of our economy and can get affordable small business loans. This is not the case in developing countries. In cities like Addis Ababa, Kampala and Dakar, growth capital is the greatest barrier preventing SMEs from employing hundreds and thousands of people. Thus you find a few large skyscrapers surrounded by thousands of shacks.

OUR MODEL

We connect investors to opportunities through public-private partnerships.

RENEW works with development organizations, development finance institutions, NGOs, governments and private investors to facilitate investments into promising businesses in developing countries.

RENEW seeks to establish a sustainable angel investment market in developing countries within 24 months from the launch of the public-private partnership. As part of the model, development organizations work with RENEW to create an investment facility that serves angel investors by providing all of the in-country services of a traditional fund management team.

Once a minimum amount of capital has been placed, the model becomes sustainable and is financed through fees charged to investors. The model can then be scaled to other sectors or regions of the country. As a result of our work, businesses and investors become the engines for growth in developing countries.

METHODOLOGY

We build angel markets in developing countries

Angel investing (larger than microfinance, and smaller than venture capital) fills a critical financing gap in developing countries, and offers both knowledge and capital to local businesses. It also offers angel investors a rewarding and potentially profitable investment.

Our clients invest their own money in businesses that are often considered too small for venture capital – between $200K - $3M, and are too large for microfinance. By partnering with development partners we make these transactions possible for investors by lowering their transaction costs.

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READ ABOUT WHO WE WORK WITH.