Gray Ghost DOEN Social Ventures Coöperatief
Last updated 12 May 2020, by Impactyield.
Emerging countries (256) / Africa (127) / Eastern Africa (50) / Kenya (12)
Gray Ghost Ventures acting as managers in collaboration with the DOEN Foundation have launched a $35 million social venture fund targeting investments that create social and economic value. Expanding upon the groundbreaking investment management work of Gray Ghost Ventures in building the Gray Matters Capital Foundation’s mission-related venture capital portfolio, this initiative excels at providing risk capital that is quick, flexible, and customized to the circumstances of the entrepreneur and the social venture. The
investment team specializes in executing and managing social venture capital investments sector in emerging and developing economies.
Our goal is to deploy needed financial resources and business expertise to high impact
social ventures addressing the needs of large, underserved populations. Each “social
venture” brings a combination of a social value proposition as well as a set of social impact
indicators. Our investment approach prioritizes social ventures that address a) access to
markets, information, knowledge and/or services; b) enhanced opportunities for productivity,
mobility and/or creativity; and c) expansion of efficiencies and time savings.
Stage: Seed and early-stage Geography: 2/3rds India; 1/3rd Global
Scope: 2/3rds ICT; 1/3rd Adapted Technologies Investment Amount per Company: $500k-$3.5mm
A market-based investment approach is key to addressing some of the world’s most challenging social issues.
A large market exists for goods and services that improve the lives of the underserved. While charitable interventions often seek to address this need, there is a break in the feedback loop when one party pays for a product or service and another party uses or benefits from it. A market-based approach provides a closed feedback loop, which can identify what is most beneficial to the end customers.
As products and services must have a low price point to be affordable to the poor, businesses that cater to low-income populations are challenged by slim margins. Therefore, for these businesses reaching millions of people is not only a social imperative, it is also a financial one: they must achieve scale to be profitable. Providing such businesses with appropriate financial and human capital will help them reach scale and create innovative solutions to enhance and empower the lives of the economically disadvantaged.
of track record
the year funded
Gray Ghost Ventures
Headquarters location: United States of America
Other funds managed by this asset manager: Gray Ghost Emerging Markets Fund III L.P.First Light
Equal rights to ownership basic services technology and economic resources
Ensure public access to information and protect fundamental freedoms
Universal access to modern energy
Increase global percentage of renewable energy
Double the improvement in energy efficiency
Expand and upgrade energy services for developing countries
Universal access to information and communications technology
Key performance indicators
Asset manager: Gray Ghost Ventures
Product track record: Fund has 14 years of track record
Target IRR: 20%
Committed Capital: 35,000,000 USD (US Dollar)
Target return category: Risk-adjusted market-rate of return
Fund domicile: Netherlands
Product status: Closed - no longer investing
Style/Stage: Early Stage, Seed Stage
Inception year: 2009
Vintage year: 2009
Target region: Africa, Eastern Africa, Emerging countries, Kenya
Target close date: 01/07/2012
Product term: 10 year term
Assets under management: 35,000,000 USD (US Dollar)
Investment size: Min: 700,000; Max: 4,200,000; Avg: 2,500,000
Co-investment policy: LPs do not have priority, With LPs and non-LPs
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 9
Fund investments to date exited or repaid: 0
Management fee: 2.75%
Carried interest: 20%
Hurdle rate: 6%
GIIN Investors' Council Investment: Yes
Limited Partners / Investors: The DOEN Foundation, Gray Ghost Social Investments N.V.
Limited Partner / Investor Type: Family Office
Phone number: 678-365-4700
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More than 4 billion people live on less than US$3 per day. Nearly a billion more live just above the poverty line, but still lack access to basic services such as electricity, water, sanitation and health care. Most have no access to bank accounts or corresponding financial services. In much of the developing world, infrastructure for transportation and communications are modest to non-existent, resulting in poor roads and little landline telephone availability.
Those living at such low income levels are not well integrated into the global economy. They do not benefit from the advantages of availability, scale and competitive pricing for goods and services that efficient market structures provide to the more affluent. In developing countries, the poor tend to rely on informal economies. These markets are inefficient, monopolistic and characterized by limited supply, lower quality and higher prices. Consequently, the poor both pay more for what they need and earn less for what they produce.
The challenge at the BOP is especially evident with regard to information and communications. Most of the increase in productivity and efficiency experienced in the developed world over the past two decades has been driven by important technological advances in information and communications. Until recently, however, the BOP has largely been excluded from such technological advancement and its associated benefits. The Fund is well positioned to capture these investment opportunities.
Bottom/Base of the PyramidMinorities/Previously Excluded PopulationsRuralUrban