A new investment fund; SDG500 will begin investing $500m in businesses working to achieve the global Sustainable Development Goals. The fund was launched earlier this week in Davos.
SDG500 will be backed by “a coalition of public and private organisations, NGOs and a private equity firm.” Capital from the funds will be used to make debt and equity agreements in early-stage businesses (Seed, Series A and Series B) in emerging markets – i.e Africa, Asia, Latin America, and the Caribbean and Pacific regions.
The fund aims to address the financial gap that affects entrepreneurs in the markets where growth is hampered by lack of access to follow-on funding.
The funding will go to the following sectors; agriculture, finance, energy, education and healthcare.
The SDG500 platform will immediately target businesses in the agriculture, finance, energy, education, and healthcare sectors in Africa, Asia and Latin America – turbo boosting progress towards the SDGs. Importantly, the fund has a gender focus and will invest in businesses that empower and provide jobs for women – including through the participation of ITC’s innovative SheTrades initiative, which aims to connect three million women entrepreneurs to market by 2021. We welcome the launch of this groundbreaking endeavour.Dorothy Tembo – International Trade Centre
SDG500 will work with 6 funds specialising on the following areas:
- ABC Fund – an impact investment vehicle targeting smallholder farmers and small and medium agribusinesses in developing countries
- BUILD – a fixed-income fund aimed at early-stage enterprises in the Least Developed Countries
- CARE-SheTrades Fund – will provide financing to businesses promoting gender equality through actions in the workplace, supply chain, women’s entrepreneurship and gender-responsive products.
- BLOC SmartAfrica and BLOC Latin America – venture capital funds targeting technology enterprises in Africa, Latin America and the Caribbean respectively
- HEAL – a venture capital fund investing in health tech businesses in emerging and frontier markets.