Where does elea invest?
Investment thesis
elea invests philanthropic capital in and provides strategic support to entrepreneurially led ventures that create lasting social impact by giving people living in absolute poverty access to employment, markets, and value chains. Across Africa, Asia, and Latin America, we collaborate with impact ventures that have innovative, economically viable models which catalyze change in their ecosystems and eventually attract further capital. Our investments are centered around agricultural value chains, last-mile retail and services, employable skills, and climate and livelihoods.
Agricultural value chains
The livelihood of up to 70% of the population in low- and middle-income countries depends on the agricultural sector. We invest in impact ventures with innovative business models that are aimed at effectively enhancing smallholder farmers' productivity and improving the quality of their produce according to ecological and fair-trade standards. As most of these farmers have no direct access to markets, elea portfolio companies help to build skills and foster the direct integration of smallholders into agricultural value chains.
Last-mile retail and services
Most goods and services in low- and middle-income countries are sold on the informal retail market. A lack of adequate infrastructure and inefficient market structures limit the availability of goods and services and often result in customers having to pay a hefty premium for them. We invest in impact ventures that strengthen the productivity of small merchants and enable their integration into digital supply and distribution systems. With innovative entrepreneurial solutions, elea portfolio companies build the adequate infrastructure needed to increase the availability of socially impactful and productivity-enhancing goods and services at fair prices.
Employable skills
One of the greatest challenges in fighting absolute poverty is equipping young people with the necessary skills to earn a living after their basic education. We invest in impact ventures that offer market-oriented, practical 21st-century skills training for motivated youth from low-income households to create pathways for them out of poverty. Once the students have completed their training, elea portfolio companies help them to find employment and thereby secure their existence, so they can live a more independent life with new economic perspectives.
Climate and livelihoods
If left unchecked, climate change will push up to 130 million people into poverty over the next 10 years and could cause over 200 million people to migrate within their own countries by 2050. People living in absolute poverty are hit the hardest by the effects of climate change. We invest in impact ventures with innovative business models that enhance the climate resilience of communities and mitigate climate change. elea portfolio companies strengthen the ability of social and economic ecosystems to cope with the consequences of climate change and, in doing so, fight absolute poverty.
Former investments
Once our role as an active impact investor is fulfilled, we withdraw from these investments. In addition to philanthropic capital, we provide intensive multi-year support in the areas of strategy, team development, and governance. This significantly contributes to fostering organizational and impact growth while simultaneously increasing the company's value. When capital is released through these exits, we reinvest it into new impact ventures.
Related questions
