Small Foundation backs AgDevCo's newest agribusiness investing strategy in Africa
AgDevColast year launched AgDevCo Ventures to provide flexible debt and technical assistance to Africa’s small agriculture businesses. The strategy builds on the nonprofit impact investor’s 17-year track. . .
AgDevColast year launched AgDevCo Ventures to provide flexible debt and technical assistance to Africa’s small agriculture businesses. The strategy builds on the nonprofit impact investor’s 17-year track record providing growth capital to small and mid-sized businesses improving Africa’s food security, agricultural livelihoods and market linkages for export. Whereas its core growth strategy writes checks of $3 million to $12 million, the Ventures division is turning downmarket to businesses needing $1 million to $3 million. Businesses at this stage fall in the “missing middle”: they’re too small to secure mainstream financing but too big for microfinance. Ireland-basedSmall Foundation, a long-time backer of AgDevCo,investedan undisclosed amount in the blended-finance facility. AgDevCo’sDaniel HullstoldImpactAlphathe investment was catalytic in getting AgDevCo Ventures going after losing a potential investor. “They were willing and able to step in when one of the funding leads fell away,” he said. “The capital was helpful in getting us over a line [for] various funding conditions to start investing. ”AgDevCo was one of the earliest dedicated investors in a sector underserved by traditional financial services. It hasgrown to$266 million in assets under management. Its portfolio businesses support more than 38,000 jobs and incomes for more than 2. 6 million farmers and traders. The organization last yearraised$85 million fromBritish International Investment,Norfundand other development finance institutions.