REGIONAL INVESTMENT SUPPORT FOR ENTREPRENEURS (RISE)

Supporting the growth

of high-impact enterprises in

Southeast Asia

CONTENTSEntrepreneurs Face Challenges

RISE Supports Entrepreneurs and the Investment Eco-system

RISE Pilot Partners

RISE’s Inclusive TA Facility (ITAF)

Flexible Platform Enables Expansion and Scale

Innovations in Technical Assistance

Enterprise Repayment Modality

Gender Lens Investing

Priority Areas of TA

Fundraising

Benefits of Partnering with RISE

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ENTREPRENEURSface challenges

FINANCIAL challenges

50% of all ASEAN SMEs are either unserved or underserved in terms of access to credit, translating into a credit gap of $52.8 billion (2010).

Southeast Asia received only 6% of global impact investment capital (2015).

Private investment capital are primarily channeled towards more established markets.

Majority of SMEs fall within the “missing middle” – they are “too risky / small” to receive bank credit, but “too established / large” to receive grant or angel investments.

As a result, entrepreneurs rely on internal funds to fund their businesses – at least 40% of ASEAN SME capital are sourced from “friends and family”.

NON-FINANCIAL challenges

Underdeveloped leadership

Lack of business management strategies

Poor governance and structures

Insufficient technical knowledge and skills

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Priority Sectors

Agriculture, energy, health, water and sanitation.

Project Timeline

1 October 2017 to 30 September 2021.

Flexible Platform Design

RISE is a platform to support social impact entrepreneurs with technical assistance and investment capital. RISE currently includes a TA Facility for SMEs and one investment fund partner.

RISE supportsentrepreneurs

and the investment eco-system

Objective

RISE aims to create impact for the base of the pyramid in the ASEAN region through providing inclusive technical assistance (TA) to enterprises with high potential for positive social and environmental impact and by mitigating risk for investors.

Geographic Focus

CambodiaIndonesiaLao PDRMyanmarPhilippinesVietnam

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RISEpilot partners

USAID as the convener provides overarching vision and seed capital for RISE and supports the platform through its regional and institutional relationships.

UBERIS is the first impact investor to engage RISE’s TA Facility. UBERIS pro-vides debt and equity fi-nancing to transforma-tive enterprises across the ASEAN region.

SWISSCONTACT is the implementer, establishing and managing RISE’s TA Facility while seeking new funds for additional intervention areas.

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RISE’s inclusive TA Facility (ITAF)As a one-stop regional facility, ITAF can drive eff iciency, coordination, and opportunity. In partnership with investors, it enables social impact entrepreneurs to access a combination of finance and technical assistance.

RISE TA FACILITY

PARTNERSHIPS WITH INVESTMENT FUNDS

provide a pipeline of SMEs and aligns TA with investment capital.

InvestmentCapital

Investment Returns

PartnershipsRepay

TA costs

Contract TA to support SMEs

TA Services

Grants

Prioritization of TA needs

POOLED DONOR FUNDSamplify impact through economies of scale.

TA PROVIDERS vetted by RISE repeatedly deploy a range of existing services across enterprises.

Small and Medium Enterprises (SMEs) ranging from early to growth receive investments and repay both investors and RISE.

Fund 2 Fund 3

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Fund 2 Fund 3

Legal Advisors

Business Consultants

Subject Matter Experts Accountants

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FLEXIBLE PLATFORM enables Expansion and Scale

ITAF is one component of the RISE Platform. RISE will fundraise to expand operations to further support the entrepreneurial eco-system.

ITAF

NOW POST-FUNDRAISING

POTENTIAL FUTURE COMPONENTS

PRE-INVESTMENT SUPPORTBuild capacity of accelerators, incubators, business information centers, other intermediaries.

GENDER LENS INVESTINGPromote and track the inclusion of women as leaders, managers, employees, consumers, and suppliers.

SOCIAL IMPACT INDICATORS Contribute to stakeholder’s ability to measure social and economic impact.

OTHER AREAS OF DONOR INTEREST AND MARKET DEMAND.

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INNOVATIONS

ENTERPRISE REPAYMENT MODALITY FOR SMEs This repayment mechanism delays payment

for TA service to a pre-determined time in the future when enterprises have improved their cash flow, which is a key feature as SMEs are often cash constrained during the times when they most need TA services.

ONE-STOP SHOP FOR ENTREPRENEURIAL SUPPORTRISE can also serve as a consolidated channel for donor support to incubators, accelerators,

and other eco-system intermediaries. This would eliminate the need for redundant TA platforms, resulting in efficiencies of scale and cross- learning between SMEs and investors.

PACKAGE OF TA PRODUCTS DESIGNED FOR INVESTORSAND ENTREPRENEURS

The TA facility is going to develop a pool of local, regional, and international consultants and in-sure quality TA delivery. TA packages will align with the needs of investors and entrepreneurs.

SUSTAINABLE AND SCALABLE MODELThrough RISE, donor grant funding is

catalytic. It establishes a platform which gene-rates revenue as SMEs pay back the cost of the TA they receive, plus concessionary operating costs. The revolving fund will enable RISE to provide more TA to SMEs in the region.

in Technical Assistance

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ENTERPRISE Repayment Modality

TA provided through

concessionary loan to

enterprise

Growth of enterprises

enabled by TA support servicesand investment

capital

Enterprise repays loan back

to TA facility

GRANT SEED FUNDS FROM

DONORS

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RISE can test new frameworks to track gender equality among ASEAN SMEs.

The USAID-supported Gender Equality Mainstreaming (GEM) Framework tracks 31 “gendered” environmental, social and governance (ESG) indicators for SMEs. If interested, RISE investment partners can apply the GEM Framework across their portfolio or with a select cohort. This allows investors to track the inclusion of women as leaders, managers, employees, consumers, and suppliers of a portfolio company.

GEM Theory of Change

Gendered ESG frameworks mainstream inclusion of women

in policies and practices

Inclusive ESG practices promote women’s

(economic) empowerment

Women’s empowerment contributes to

gender equality

GENDER Lens INVESTING

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PRIORITY AREASS of Technical Assistance

Business Strategy

Governance and Legal

Human Capital

Sales and Marketing

Financial Management

Products and Services

Supply Chain

Management

ImpactAssesment

SMEs

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FUNDRAISINGRISE is currently seeking funds to sustain the project and support INCLUSIVE GROWTH OF ASEAN SMEs.

2017

SEED

$800,000USAID pilot funds

establish the platform, test the sustainability of the TA model with

a selection of investees, and support fundraising.

2018-2021

FUNDRAISING

$10+ millionExpand to support additional investors in the region.

Generate economies of scale that would allow RISE to channel an increasingly larger portion of funding into TA delivery.

Design, test, refine, and brand a portfolio of tailored products for investors and entrepreneurs.

Begin working in the eco-system support space.

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BENEFITS OF partnering with RISEDonors

An established structure throughwhich resources are channeled tosupport social impact entrepreneurs,investors, and other ecosystem actors (accelerators, networks,and business information centers).

A flexible structure that allows for bespoke, demand-driven interventions.

Focus resources on important challenges such as employment for lower income communities, pro-poor products and services, missing middle finance, gender equality and empowerment, and environment.

Investors

TA packages address the needs of your investees, beyond the core areas supported by your team.

Investees repay the cost of TA, but after cash flow improves.

A vetted pool of consultants ensure quality of TA delivery.

Consultancies

Matchmaking with social impact entrepreneurs in need of TA.

Introductions to relevant investors and intermediaries across the ASEAN region.

Branding opportunities through RISE communication materials.

THANK YOU!For more information, please email

Swisscontact RISE Team Leader, Kevin Robbins at kevin.robbins@swisscontact.org

USAID Private Sector Advisor, Mike Monteleone at mmonteleone@usaid.gov