Investing | Aspen Network of Development Entrepreneurs

In 2017, at least 47 new investment vehicles launched with a median target AUM of US $40 million

Number of Investment Vehicles Launched
Median Target

Investment vehicles qualified for inclusion in this dataset when they met three criteria:

The investment target included emerging market countries
Target deal sizes were from US $20,000 to US $2 million
The focus was not exclusively on microfinance institutions

Of the 47 investment vehicles launched in 2017, 32 percent focus on the information, technology, and communications (ICT) sector and 21 percent are impact oriented. Over 40 percent of newly launched vehicles are willing to consider seed-stage ventures, compared to 29 percent from 2008 to 2012. At first glance it may appear that the number of vehicles launched dropped in 2017. However, the most recent year of data tends to lag due to delays in communications and collection of data. As a result, we cannot say definitively that this represents a true decline in the number of vehicles launched. See more about our methodology.

The proportion of vehicles launched in Asia increased in the past decade of SGB investing

The health sector saw the most growth, and over half of vehicles focus on ICT

Emerging market fundraising and investments were higher in 2017, but early-stage deals declined overall

Capital Invested in Deals < $2M (USD M)
% Deals $2M and Under

Despite these overall gains, the proportion of emerging market deals under US $2 million decreased to 21 percent with just over 900 deals recorded in 2017. The total capital invested in deals under US $2 million also decreased by 13 percent to US $217 million, despite total emerging market capital invested reaching unprecedented levels of US $48.6 billion, 43 percent higher than in 2016.

In Latin America, the number of deals US $1 million and under fell by 7 percent to 168, but the number of deals between US $250,000 and US $500,000 reached all-time high of 94

Deals < US $250,000
Deals US $250- US $500,000
US $501k- US $1M

Gender Focus

Most ANDE Members prioritize gender inclusion, and “Women as Entrepreneurs” is the top gender gap they aim to address

What gender gap(s) does your organization aim to address?

From 2013 to 2017, the percentage of launched vehicles that focus on gender inclusion was 6 percent, increasing from 2 percent between 2008 and 2012. Half of these new gender-focused vehicles since 2013 were launched in 2017.

The term gender-lens investing has become quite popular over the past couple of years, but ANDE members have demonstrated that an organization does not need to be an investor to implement a gender inclusion strategy.

In 2017, 65 percent of ANDE members who worked directly with SGBs or entrepreneurs said they prioritize gender inclusion, and 62 percent collect gender disaggregated data. Of the capacity development providers that completed the survey, 77 percent said they prioritize gender inclusion, as opposed to 54 percent of investors. Most of these members aim to address the gap of "women as entrepreneurs" and "women as leaders", with only 27 percent of respondents aiming to address women as clients.

Gender Focus

Most ANDE members do not screen SGBs or entrepreneurs to promote gender inclusion, but those that do seek ones with leading gender diversity records

When asked if their organizations screened or selected entrepreneurs based on their commitment to gender inclusion, nearly half of ANDE members responded no. A quarter of the members who responded said that they seek SGBs or entrepreneurs with leading gender diversity records including strong policies and programs, diverse boards and management, and work/life balance programs. Nine members said they exclusively focus on SGBs or entrepreneurs seeking to drive greater gender equality, and six said they use restrictive screens to avoid exposure to SGBs with poor gender diversity records such as weak policies, poor supply chain safety records, or involvement in an industry seen as harmful to women. These categories were adapted from Morgan Stanley’s 2017 report, An Investor’s Guide to Gender Diversity [36].

The SGB Sector in 2017

Investing: Global

In 2017, at least 47 new investment vehicles launched with a median target AUM of US $40 million

The proportion of vehicles launched in Asia increased in the past decade of SGB investing

The health sector saw the most growth, and over half of vehicles focus on ICT

Emerging market fundraising and investments were higher in 2017, but early-stage deals declined overall

In Latin America, the number of deals US $1 million and under fell by 7 percent to 168, but the number of deals between US $250,000 and US $500,000 reached all-time high of 94

Gender Focus

Most ANDE Members prioritize gender inclusion, and “Women as Entrepreneurs” is the top gender gap they aim to address

What gender gap(s) does your organization aim to address?

Gender Focus

Most ANDE members do not screen SGBs or entrepreneurs to promote gender inclusion, but those that do seek ones with leading gender diversity records