Equity funding from Aavishkaar

Description

1)  Objective

The name of the organization Aavishkaar means ‘invention’ in Hindi. Founded in 2001, with a vision to catalyse development in India’s underserved regions, it identifies capable entrepreneurs, provides them with capital, supplements it with a nurturing environment and helps build sustainable enterprises. Aavishkaar’s innovation is the adoption of venture capital methodology to serve the low income market segment by creating scalable enterprises. Their main investment is in finance institutions (35%) followed by technology (25%) and agriculture and dairy (11%).

Aavishkaar brought in 3 key innovations to venture capital investing: (1) moving the investment risk from technology and product innovation to innovation in execution. This allowed them to focus on the needs of the people; (2) redefining the parameters of blockbuster success -a return of 5 to 10 times of invested capital, instead of a return of 100 times; (3) identifying young and experienced investment managers driven by passion, social recognition and fulfilment in work, remunerating them in an equitable and non_hierarchical manner, thus building a large team with limited fee, and no grant support.

2) Eligibility

Social businesses are eligible to apply.

3) Location

Aavishkaar have taken it upon themselves to be the leaders of micro equity investments to create scalable small entrepreneurs with significant social impact in India.

4) Budget

The Fund size is app. $150,000,000. Average equity investment per company is around $2,000,000.

5) Application

So far they have supported around 50 companies. Applications can be sent anytime throughout the year via email.