Table of Contents

Global

• Overview

• Capacity Develoment

  1. ANDE members delivered capacity development services through direct consulting, peer networks, and training
  2. Capacity development providers spent an average of $3,300 per business, spending less per SGB as the number of SGBs they served increased
  3. Over 500 accelerators operate globally
  4. Capacity Development: Corporate Engagement

• Investing

  1. In 2017, at least 47 new investment vehicles launched with a median target AUM of US $40 million
  2. The proportion of vehicles launched in Asia increased in the past decade of SGB investing
  3. The health sector saw the most growth, and over half of vehicles focus on ICT
  4. Emerging market fundraising and investments were higher in 2017, but early-stage deals declined overall
  5. 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
  6. Most ANDE Members prioritize gender inclusion, and “Women as Entrepreneurs” is the top gender gap they aim to address
  7. Most ANDE members do not screen SGBs or entrepreneurs to promote gender inclusion, but those that do seek ones with leading gender diversity records

• Donor Funding

  1. Donor funding for SME-related projects declined by 12 percent in 2016
  2. Donor funding for entrepreneurship remains marginal proportion of total donor disbursements
  3. From 2012 to 2016, over one-third of SME-related funding was allocated to Turkey

Brazil

• Overview

• Capacity Develoment

  1. Brazilian accelerators and incubators relied primarily on government and philanthropic funding

• Investing

  1. Investment vehicles remained steady in Brazil
  2. ICT dominated newly launched investment vehicles, while no environment-focused vehicles were launched in the past five years
  3. SGB deals increased after a dip in 2016 as the average deal size hovered around US $600,000

• Donor Funding

  1. Funding for SMEs consistently represents a minimal percentage of all donor funding for Brazil

Central America and Mexico

• Overview

• Capacity Develoment

  1. Mexican ventures applied to accelerators for the network and mentorship opportunities

• Investing

  1. Newly launched vehicles in Central America and Mexico declining since the 2014 peak of 7
  2. 91 percent of all vehicles investing in Central America and Mexico region invested in Mexico
  3. Fewer deals than expected in Central America and Mexico in 2017

• Donor Funding

  1. Mexico drives SME-related donor funding in Central America and Mexico

East & Southeast Asia

• Overview

• Capacity Develoment

  1. Most capacity development providers in East and Southeast Asia broker partnerships and network-based support

• Investing

  • 58 percent of vehicles launched after 2012 in Southeast Asia focused on ICT
  • In Emerging Asia, the volume and proportion of deals under US $2 million declined for the first time in 8 years

• Donor Funding

  • Funding for SME-related projects in Southeast Asia primarily focused on Vietnam
  • Donor funding for SME-related projects in China marginal proportion of total disbursements

East Africa

• Overview

• Capacity Develoment

  1. In East Africa, most capacity development providers are sector agnostic and focus on mentoring, talent placement, and network-based support

• Investing

  1. Investment vehicles in East Africa are declining
  2. Most investment vehicles focused on East Africa are regional vehicles
  3. The number of tech start-up deals remained consistent, while average deal-size varied dramatically

• Donor Funding

  1. Donor funding for SME-related projects highest in Ethiopia
  2. Top 5 Donors supporting SME-related projects in East Africa

India

• Overview

• Capacity Develoment

  1. Philanthropy is the most common funding source in India, followed by the government

• Investing

  1. Over half of vehicles launched in the past five years in India focus on the ICT sector
  2. With ticket sizes rising in 2017, early-stage deals declined in India

• Donor Funding

  1. Total Donor funding to India has nearly doubled over the past decade, with funding for SME-related activities not consistently increasing
  2. The top three donors supporting most of the SME-related projects in India in 2016

South Africa

• Overview

• Capacity Develoment

  1. BDSPs in South Africa tend to be sector agnostic and provide multiple services
  2. Accelerators and Incubators are funded through a variety of sources, and most are donor funded

• Investing

  1. Investment vehicles focused on South Africa declined over past decade, especially those funding early-stage ventures
  2. In 2017, the number of tech start-up deals declined slightly and average deal size hovered around US $800,000

• Donor Funding

  1. Donor funding for SME-related activities remained a small fraction of donor funding in South Africa
  2. Flanders Official Regional Ministries led the way in SME-related funding for South Africa

West Africa

• Overview

• Capacity Develoment

  1. West Africa has 76 capacity development providers, most of which are sector agnostic, and focus on partnership brokering

• Investing

  1. In the past decade, 48 percent of vehicles launched in West Africa focus on agriculture
  2. In 2017, the number of tech start-up deals rebounded from 2016 as average deal size declined by 67 percent

• Donor Funding

  1. Over the past five years, SME-related disbursements continued to be on the rise in Anglophone West Africa
  2. Canada, the United Kingdom, and the United States were the largest contributors to SME-related projects
     in West Africa in 2016