- 2017, 8 f
SITAWI recently led a closed fundraising process for the first “collective loan” for an impact business in the country. Together with other investors, it was possible to disburse R$ 100,000 for the selected impact business.
This innovation unites crowdlending with impact investing. In addition to below market rates for the borrower, SITAWI will provide ongoing strategic advice. For the investor, this is an “easier” investment opportunity for both the risk and the social impact assessment will be conducted by an experienced player.
“We believe that, in addition to venture capital impact investments, focusing on high growth potential but also high risk start-ups, there are many other opportunities to fund for profit and nonprofit impact businesses through loans, which is the most suitable instrument for more established and less risky organizations. We are thrilled to be able to offer this opportunity to potential investors, currenlty exclusively to our supporters”, says Leonardo Letelier, CEO of SITAWI.
The collective investment approach allows individuals with insufficient resources to carry out an entire transaction to contribute to a loan along with other investors. This format also allows for an increase in the number of companies supported and the impact generated.
The selection of the impact business was done by SITAWI’s Social Finance team. The organizations that applied for a loan went through a due diligence process that consisted of understanding their business models, financial situation, and social impact generated. In addition to this process, SITAWI will also monitor the selected impact businesses’ performance and impact over the course of the loan.
SITAWI designed this mechanism with Broota Brasil, an online platform dedicated to equity. Broota is now integrating this crowdlending tool into its services after this first experience with SITAWI.
The organization chosen for this pilot initiative was Inteceleri, a technology company focused on creating projects, solutions, and tools that can help change the way mathematics is taught in Brazil. The main product of the company is the Matematicando Program. During a one-year implementation stage, the program’s team of educators will train teachers and students, and will carry out math tournaments in three stages in order to compare the results.
Learn more about the Inteceleri case here.