Hey Angeles,
You have some really great ideas! I was wondering how you plan to select which social enterprises you will fund. Can you provide some details on your selection process?
Thanks and Good Luck!
Thank-you so much for your question. This is definitely one of the key challenges of I Cubed and an issue which I am asked about extensively whenever I pitch this idea.
One of our key strategies in building a portfolio of socially-responsible and potentially (if not already) profitable businesses is to create a network of aid agencies, microfinance banks, NGOs, businesses, and any other organizations that work to improve the standard of living in developing countries and have experience working with SMEs. Agora Partnerships is an example of a non-profit organization that we would aim to work with, as they focus on providing consulting services to small and medium social enterprises in developing countries. The Millennium Villages, Grameen Bank, FINCA International, ACCION, the World Bank, CARE, USAID, and Chemonics International are other examples of organizations with which we are building lines of communication. Building relationships with these organizations will allow I Cubed to be much more efficient in its work. Asymmetries of information among development practitioners today is all too common, causing many organizations to step on each others' feet, to say the least. We want to make sure to communicate appropriately with all parties with whom our work intersects. We are currently compiling this network of useful contacts in these various fields.
This network will be one tool we use to build a list of desirable portfolio companies. Members of these organizations will be able to identify SMEs with growth potential. In addition, we intend, once we are more established, to send qualified individuals to developing countries to find and evaluate businesses firsthand. One we identify businesses, through either of these methods, we will evaluate these businesses based on a comprehensive questionnaire that focuses on the business's history, industry, operations, potential for job creation, social concerns, and environmental concerns. Most investors consider investments in developing countries to be highly risky, so this final evaluation is key.
Finally, we will consider creating various diversified funds, to give investors more choice over the SMEs that they support while allowing them to minimize risk.
Selecting the most promising SMEs is certainly the most vital aspect of I Cubed's operations. Each business will be analyzed individually and thoroughly. In addition, we will connect our portfolio companies with the services and mentoring they need to succeed, as any venture capital firm would. As we are truly in the beginning stages of our business, developing an extensive network of valuable partners, consultants, and advisers is essential to creating the portfolio(s) of companies that will be the cornerstone of I Cubed.
I Cubed aims to create a profitable situations for all parties involved, investors and the SMEs.
Comments
Hey Angeles,
You have some really great ideas! I was wondering how you plan to select which social enterprises you will fund. Can you provide some details on your selection process?
Thanks and Good Luck!
Kate Myers
Ashoka's Youth Venture
Hi Kate,
Thank-you so much for your question. This is definitely one of the key challenges of I Cubed and an issue which I am asked about extensively whenever I pitch this idea.
One of our key strategies in building a portfolio of socially-responsible and potentially (if not already) profitable businesses is to create a network of aid agencies, microfinance banks, NGOs, businesses, and any other organizations that work to improve the standard of living in developing countries and have experience working with SMEs. Agora Partnerships is an example of a non-profit organization that we would aim to work with, as they focus on providing consulting services to small and medium social enterprises in developing countries. The Millennium Villages, Grameen Bank, FINCA International, ACCION, the World Bank, CARE, USAID, and Chemonics International are other examples of organizations with which we are building lines of communication. Building relationships with these organizations will allow I Cubed to be much more efficient in its work. Asymmetries of information among development practitioners today is all too common, causing many organizations to step on each others' feet, to say the least. We want to make sure to communicate appropriately with all parties with whom our work intersects. We are currently compiling this network of useful contacts in these various fields.
This network will be one tool we use to build a list of desirable portfolio companies. Members of these organizations will be able to identify SMEs with growth potential. In addition, we intend, once we are more established, to send qualified individuals to developing countries to find and evaluate businesses firsthand. One we identify businesses, through either of these methods, we will evaluate these businesses based on a comprehensive questionnaire that focuses on the business's history, industry, operations, potential for job creation, social concerns, and environmental concerns. Most investors consider investments in developing countries to be highly risky, so this final evaluation is key.
Finally, we will consider creating various diversified funds, to give investors more choice over the SMEs that they support while allowing them to minimize risk.
Selecting the most promising SMEs is certainly the most vital aspect of I Cubed's operations. Each business will be analyzed individually and thoroughly. In addition, we will connect our portfolio companies with the services and mentoring they need to succeed, as any venture capital firm would. As we are truly in the beginning stages of our business, developing an extensive network of valuable partners, consultants, and advisers is essential to creating the portfolio(s) of companies that will be the cornerstone of I Cubed.
I Cubed aims to create a profitable situations for all parties involved, investors and the SMEs.
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