Value Creation
Besides the value created through our Social Impact initiatives, we want to create value for our investors providing yearly, sustainable returns.
It is possible to achieve both social and financial objectives by clearly defining our investment horizon. Moreover, we can divert more resources towards both goals by reducing working costs, creating different revenue streams and operate as efficiently as possible.
Investment timeline
Creating lasting value, both financially and socially, requires a degree of certainty towards the availability of the funds invested. Hence, we ask our investor to make their investment with this in mind.
All in all, we foresee an investment period of 5 to 7 years for the initial investments made including the period needed to search for investor funds.
Because the fund works with a stock system, it will be possible to sell these to a third party at all time. We're also considering buy-backs, but the details still have to be worked out.
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Investment horizon:
5 to 7 years
Our goal:
5%
annual return
Financial objectives
Up to now, we've mostly promoted our Social Impact initiatives, but it is very important to state that we aim to be a profitable fund, generating stable returns for our investors over the investment period.
Our primary financial goal will be to achieve a 5% annual, cumulative return on the funds entrusted to us. We aim to achieve these returns through the growth and profitability of the projects that we support, but also through controlling our costs and creating other income sources.
Mission statement
By investing in local projects in developing countries and guiding these projects throughout their life cycles, we will:
- Give entrepreneurs the opportunity to develop their ideas and solutions;
- Create sustainable employment opportunities for local communities;
- Provide structured Social Impact to all project participants;
- And offer a return on investment for our investors.
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A successful investment benefits all stakeholders
Stringent cost management
All our initiatives and investments will be thoroughly examined to assure a minimum of funds are needed for a maximal amount of impact and/or return. These policies will further be supplemented by an internal commitment to restrict the working capital (yearly budget for wages, rent, desk supplies, ...) to a maximum of 2% of the assets under management (A.U.M.) or the total amount of funds received by our investors.
Working capital:
max. 2% per year of A.U.M.*
*Assets Under Management = total amount of capital invested by our investors
Revenue diversification
To reduce the need for our supported projects to generate a return quickly and to increase overall cashflows, we are going to invest a small part of the funds collected in two alternative revenue-generating streams:
1. Local data collection for third parties
Data is considered the new gold and a lot of companies are interested in, and thus willing to pay for, data. Our aim is not to collect data via invasive means or force our projects to hand over data without their consent, but rather to collect, for example, customer data in the areas where we are present.
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2. Organize travel tours
This might sound strange at first, but we have noticed that a lot of people are interested in visiting the projects that are supported. As our clusters are also located in a lot of 'tropical' places these visits could be combined with a safari, a beach holiday or a combination of both, thus providing a wonderful experience for those participating!
