#Cookstoves2015 @Cookstoves
Understanding the Landscape of
the Alliance’s Grant Funding
Abdul Lediju, Deutsche Bank
Emmy Wasirwa, Wana Energy Solutions
Dan Block, I-DEV
Jen Tweddell, Global Alliance for Clean Cookstoves
The Alliance has a suite of financing mechanisms
to develop and grow the clean cooking sector.
Spark Fund
Capacity Building
Facility
Catalytic Small
Grant Fund
Facility to scale up
Commercially Viable
Enterprises
Pilot Innovation Fund, Women’s Empowerment Fund
Working Capital
Fund
Capacity Building Facility
Capacity Building
InvestmentBusiness Scaling
Clean CookstoveAdoption!
“The CBF Recipe”
Partners with impact fund managers to increase investment
Funds capacity building to leverage investment capital
Works with partners to prioritize capacity building needs
Encourages the development and use of local service providers
Pilot Innovation Fund
CHALLENGE
• Innovations are needed across the
value chain but few funders take
risks on unproven concepts, and
investors are reluctant to fund R&D
SOLUTION
• The Pilot Innovation Fund (PIF)
provides grants of up to $150K to
finance game changing technology
and business model innovations.
• Grantees share lessons learned
with the sector.
Catalytic Small Grants (CSG)
CHALLENGE
• There is a need for country-specific mechanisms
that fund capacity building and growth of locally
owned and operated companies.
• These enterprises often find it difficult to improve
their operations and implement growth initiatives to
better position themselves for future investment.
SOLUTION
• The CSG program is a country-specific program
that funds capacity building and growth of locally
owned and operated companies.
• Enterprises receive grants of up to $100K to fund
catalytic enterprise development and growth
initiatives that will increase likelihood of investment,
as well as enrich the value chain through more
efficient production and enhanced distribution.
CSG Process
Idenitifcation of high potential
enterprises
Due diligence
Review PanelNegotiation
of Milestones
Post Grant Management and Capacity
Building
In-depth review of the business
model, management team,
technology, internal capacity,
financials, financial management
practices, gender mainstreaming
practices, etc. Process includes a site
visit
6-8 high potential enterprises identified
by the market manager in consultation
with HQ staff and local alliances.
Funding is released tranches and
companies have to hit milestones
tied to sales, building capacity and
improving social impact work
Management mirrors that of traditional
equity investment. Companies check in
regularly, Alliance hires consultants to
build capacity, companies submit
quarterly financials and basic social
and environmental impact data.
Spark Fund
CHALLENGE
• Few impact investors are willing to
provide money and technical assistance
to early stage enterprises with less than
$500,000 - $1 million in revenue.
SOLUTION
• The Spark Fund addresses this challenge
with “smart grants” to find capacity
development and growth.
• Spark grants of up to $500K target the
specific capital and capacity building
needs of venture and growth stages
enterprises.
Spark Investment Criteria
Enterprises are:
• Market-based, commercially viable models with proven acceptance and uptake of the product(s) in their target market.
• Venture- or Growth-stage enterprises generating sales but not yet mature enough to access growth capital from traditional investment sources.
• Scalable enterprises with the potential to make a significant contribution to the Alliance’s 100 million by 2020 goal.
• Not required to be profitable to apply, but all applicants should have a clear and feasible plan for achieving break-even profitability.
Spark Testing Results Reporting and Performance
Spark Process
Initial ApplicationDue
diligenceInvestment
PanelNegotiation
of Milestones
Post Grant Management and Capacity
Building
In-depth review of the business
model, management team,
technology, internal capacity,
financials, financial management
practices, gender mainstreaming
practices, etc. Process includes a
site visit
Businesses Submit their business plans,
testing results for technology, financials
(in a template), social impact summary,
management CVs, etc.
Funding is released tranches and
companies have to hit milestones
tied to sales, building capacity and
improving social impact work
Management mirrors that of traditional
equity investment. Companies check in
regularly, Alliance hires consultants to
build gender capacity, management
capacity is supported, companies
submit quarterly financials and basic
social and environmental impact data.
Typical Spark Fund Growth Initiatives
Internal capacity improvement such as financial management, management information systems, supply chain improvements, etc.
Building out of manufacturing capacity
Expansion to a new market
Marketing support
Consumer financing or other distribution partnerships for scale up
Research and development
Alliance grants are not intended to finance ongoing operations or
subsidize unsustainable business models.
Country India
Stage of
Development
Growth
Follow on
funding
$250,000 in debt
$2,670,000 series A
round recently closed
Greenway’s principal growth initiatives under the Spark Fund:
Establishment of fully owned manufacturing unit with capacity to manufacture 800,000 stoves annually.
Setting up of retail distribution network and hiring on new general manager to head partnership sales channel.
Launched new product; the Greenway Jumbo Stove.
Spark 2 Portfolio2.1 Million USD Portfolio split across 6 grantees
Spark Venture
Eco Fuel Africa - carbonized briquette company based in Uganda
Sustainable Green Fuel Enterprise -carbonized briquette company based in Cambodia
SimGas BV - biogas digester manufacturing and distribution company based in Netherlands and Tanzania
Spark Growth
Ecozoom - improved cookstove designer, marketer and distributor in Kenya
Greenway Appliances - improved cookstove designer, manufacturer and marketer in India
SME Funds - ethanol gel fuel manufacturer and distributor in Nigeria
Spark 2 Portfolio Results
Follow on investment $ 4,180,700
Follow on grants $ 2,942,494
New products developed 4
New products to market 2
Stoves distributed in 2014 871,184
Fuels distributed in 2014 6,153,613 kg
#Cookstoves2015 @Cookstoves
Understanding the Landscape of
the Alliance’s Grant Funding
Abdul Lediju, Deutsche Bank
Emmy Wasirwa, Wana Energy Solutions
Dan Block, I-DEV
Jen Tweddell, Global Alliance for Clean Cookstoves