IGNITE IMPACT FUND – FUND OVERVIEW
We are an impact investment fund. Impact investments are investments made into companies, organizations, and funds with the intention to generate social and environmental impact alongside a financial return.
Ignite Impact Fund is dedicated to eradicating extreme poverty in the Philippines. We plan to invest in innovative startups that address both poverty of income and of access – coincidentally in cities and islands where the opportunity is also greatest. These early-stage companies will have a clear path to revenue generation within 1 year, while growing companies will have a track record of over a decade and existing community partners; both types of companies will drive inclusive, sustainable, and socially responsible economic growth in the country. We screen for a clearly embedded strategy and structure for achieving their social and environmental impact targets prior to investment, enabling us to focus predominantly on financial returns and managing the friction points between purpose and profit during the investment life.
The fund will invest in growing businesses from any country that can eradicate poverty in the Philippines. American and European startups that want a foothold in the rapidly growing ASEAN market would do well to start in the Philippines, which is home to 1/6 of the region’s people. These firms will have business models with inclusiveness and sustainability built-in, cautiously relying on technology. Our target portfolio companies should be founded on innovative concepts that both serve and employ the poor.
|Ignite Impact Fund|
|Target Population||29.1M Filipinos living under the national poverty line ($200/ month), particularly the 8.3M living under $1.90 PPP per day|
|Target Business model||Fund businesses based on inclusive innovations that will increase average household net worth in an environmentally sustainable manner|
|Target Impact||Proportion of PH population living below $1.90/day is 0% by 2033|
|Geographic Focus||Philippine impact regardless of national origin of technology / company|
|Average Investment per Portfolio Company||USD $250,000 to $1 million|
|Fund Size||USD $10 to $20 million|
|Target Returns (IRR)||Eight percent (8%)|
|LP Profile||Combination of institutional investors with a requirement for an explicit impact thesis who seek returns but are willing to accept some risk, individual investors or family companies who want tangible measurable impact and some returns|
WHAT WE OFFER OUR LPs
We are looking for limited partners whose vision for investing is not limited merely to profit. Potential partners should share our drive to transcend the warm feeling and transactional nature of charitable giving. To those who share our drive to build a better future and make their money more meaningful, we offer access to deals that use innovations in biotechnology and IT sustainably to leverage deeply undervalued cash-generating assets and as a knock-on effect create jobs and eradicate poverty in the Philippines. The success of our curated investments is built on:
Focus: Our focus on the Philippines allows us to dig deeper for more profitable investment opportunities.
Traction: Our principals have deep expertise in fund management, technology commercialization, and innovation. Moreover, the local team has worked with startups, angel investors, venture capitalists, large corporations, universities, research institutes, foreign aid agencies, and the Philippine government for over a decade. This unique combination of skills enables Ignite Impact to identify and execute investments that are not apparent to others in the marketplace.
Agility: Based in Austin (USA) and Manila (Philippines), our lean team, multi-sectoral network, and detailed, scientific approach affords us tremendous adaptability, allowing us to seize opportunities as they arise.
Learn more about the Ignite Team here.
WHAT WE OFFER OUR PORTFOLIO COMPANIES
We believe that the future belongs to those of us who are willing to get our hands dirty and make relentless execution a habit. Regardless of national origin, and in addition to funding, we will also provide the companies we invest in with:
Foundation: Based on our 14 years developing the Philippine startup ecosystem, our fund managers adapt global best practices with highly localized perspectives to effectively guide each portfolio company through their varying developmental paths: from national & regional growth strategy creation, risk mitigation, social and environmental impact measurement and management, and ultimately exit.
Rigor: Having come from the trenches ourselves, we understand what it takes to make a business thrive. Our team provides actionable insights and unrelenting discipline to drive businesses hard toward both impact and exit. Our selection and assessment metrics, tailored to the Philippine operating environment, will aide portfolio companies in identifying roadblocks and risks to their respective business models, and maximize social and financial impact.
Collaboration: Sustainable and repeatable success can only be achieved through the consistent collaboration of all key stakeholders. We’ve built and nurtured a network of partners in all areas of the ecosystem. Access to a network of government agencies, local universities and corporations, angel and institutional investors, and other like-minded entrepreneurs will help mitigate risks and ease friction points.
Learn more about the Ignite Team here.
HOW WE INVEST
Our investment philosophy is predicated on the view that private investments in socially driven enterprises will enact long-term, tangible change that government funding or foreign aid simply cannot achieve. Ignite Impact will disrupt the notion that socially-driven enterprises are just CSR initiatives; instead they can and should be treated like any other “conventional” business.
Through private investment and market discipline, these startups can scale and become national, regional, and even global providers of goods and services thus reaching their true value. Exploiting abnormally undervalued assets in the inefficient Philippine market affords the opportunity to realize higher investment returns over time.
Ignite Impact will take a balanced approach in our investments, funding both social and conventional enterprises in order to mitigate risk. Investments that prioritize financial returns - such as modernization of agriculture and mariculture practices or infrastructure improvements such as last-mile internet connectivity - will also improve an underserved community’s business practices, increase livelihood opportunities, and still ultimately achieve social impact.
Our fund’s target return of 8% IRR over the 10-year fund life reflects the infancy of impact investment in the Philippines and that most of the opportunities we will be looking at are in the early stages of business development. We are willing to take a discounted return from traditional investment funds in order to increase the scale of social impact that our portfolio companies can achieve. Patient capital can receive a return while building communities and redefining Filipino lives.
While the Philippines has no shortage of startups trying to solve the country’s biggest problems, impact investment is still new to mainstream investors who may not see the long-term benefits and will instead import a cheaper solution that creates jobs elsewhere. Our goal is not to hold our portfolio companies throughout their lifetime, but to make them ready for and more attractive to institutional investors and local corporations to acquire.
Whenever possible, we hope to partner with development finance institutes and philanthropic entities to pursue a blended finance approach for specific opportunities.