Investment Model


EGF invests in social businesses creating both commercial value and social impact for the most disadvantaged communities. It focuses on the education space across a broad range of sectors such as Health, Nutrition, Water & Sanitation, and Technology.

EGF investors offer long-term capital to early-stage social businesses who can demonstrate their capability to be financially sustainable and profitable over a 5-10 years horizon. We will invest as little as $100,000 to partner closely with a founder at the seed stage, and as much as $2,000,000 to help an emerging winner establish leadership at the venture stage. EGF also works in collaboration with foundations who are able to offer philanthropic grants to support entrepreneurs transitioning from charity to social business, including social businesses who are not yet at a commercial stage.


Social Impact


Although there has been great attention on increasing the provision of educational opportunities for children in marginalised communities, there remains many barriers that prevent children from entering and remaining within the education system. EGF portfolio companies address these barriers by offering high quality and affordable goods and services to low-income communities at the base of the pyramid (BoP). The products and services provided by EGF portfolio companies have an explicit and direct impact on educational outcomes (attendance and attainment) of their respective customer bases.

EGF has initial geographic focus on Sub-Saharan African and South Asia, where educational attainment continues to lag relative to GDP growth (Social Progress Index, 2014). In countries like Kenya, for instance, where only 20% of children complete secondary education, it is difficult to imagine how improved livelihoods, well-being & social progress can be sustained over time without educated citizens. Yet, these countries have the opportunity, given underlying demographic and economic resources, to develop and improve standards of living of millions - including bringing millions out of poverty. We are looking for social entrepreneurs who are accelerating this change with innovative business models.


Performance


EGF has a globally diversified pool of investors from Africa, Asia, Latin America, US and Europe who are committed to removing barriers to education in emerging markets.

Returns expectations for EGF is getting capital back (x1 multiple) across its portfolio and attract follow-on capital for companies exiting the portfolio. EGF portfolio companies are building long-term strategic assets from scratch and these assets will generate a future value that outweighs the short term operating losses necessary to get these businesses off the ground.

Ambition: By 2024, EGF will have matured to have $25m committed capital with capital deployed over 10-12 projects supported by a team of x5-8 professionals.

Revenue / cost model: EGF is a non-profit fund which takes 10% management fees (no performance fee) to support its overhead & operating costs.