Investment process
A professional, multi-stage investment process ensures that we achieve the highest possible social impact.
We invest the funds entrusted to elea by philanthropic investors and those of the Foundation itself in carefully chosen and verified impact ventures. A well-established, comprehensive process defines clear goals as the basis for a long-term, cooperative partnership between elea and our impact ventures.
Every year, elea examines nearly 2’000 potential investment opportunities. We find out about these impact ventures in many ways. Sometimes, the entrepreneurs contact elea directly. In other cases, a first contact takes place via our global network. An elea team member can also become aware of a venture during one of the regularly organized scouting tours in target countries. Following an initial analysis and first personal discussions, if an impact model is deemed promising, a comprehensive due diligence and detailed examination will occur. It can last from several weeks to several months and, in all cases, includes an on-site assessment. The multi-level process ensures a customized structuring of the financial and contractual agreements.
Along with our portfolio ventures, we prepare a Value Creation Plan that includes entrepreneurial and social-impact-related goals and lays the foundation for a close cooperative partnership over an investment period that typically lasts about five to eight years. We only get involved when a venture has fulfilled all investment criteria and if we can significantly contribute to its development. In accordance with this, the investment process is highly selective, with five to ten investments annually.
Investment criteria
We only evaluate an impact investment opportunity in detail if the following criteria are fulfilled:
Focus on absolute poverty
The venture focuses on absolute poverty and directly improves the living conditions of those who are affected.
Lasting improvement
The venture delivers a lasting improvement in individual living conditions, not just short-term relief.
Economically sustainable model
The venture follows an entrepreneurial, market-driven, and self-sustaining approach that is built to last.
Proof of concept
The venture’s proof of concept has already been established and shown to work in practice.
Entrepreneurial leadership
The venture is led by credible entrepreneurial leadership whom we trust to execute the business plan.
Contribution beyond financial investment
elea can significantly contribute beyond financial investment, through expertise, coaching, and networks.
Route to exit
The venture’s structure and investment terms provide a realistic path to exit in the medium to long term, so that elea can recycle the capital into new impact ventures.
Fit with our focus areas
The venture shows conformity with one of our four strategic investment themes (agriculture, climate and livelihoods, employable skills, and last-mile retail & services).
Think your venture fits?
If your venture meets our investment criteria, we would like to hear from you. Tell us about your impact model and where you stand today.